Comprehensive Report on Mondi Plc: Financials and Ratio Analysis

This report provides a financial analysis of Mondi Plc, a global packaging and paper group. It details the company's operations, including its products, services, and geographic reach. The report explores Mondi's business segments, such as packaging paper, fibre packaging, consumer packaging, and uncoated fine paper. It examines the Chairman’s and Chief Executive’s reports within the financial statements, highlighting the company's commitment to responsible growth and shareholder value. The report also discusses the significance of ratio analysis in assessing the company's financial health, including its benefits for trend analysis, budgeting, and efficiency evaluation, as well as its limitations related to historical data and accounting policies.

Running head: ACCOUNTING AND FINANCE
Accounting and Finance
University Name
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Table of Contents
What does your company do?....................................................................................................2
Where does it do its business?...................................................................................................2
How does it do its business?......................................................................................................3
Chairman’s / Chief Executive’s reports within financial statements.........................................3
News stories’ for your firm........................................................................................................3
Need for ratio analysis...............................................................................................................4
Benefits of ratio analysis............................................................................................................4
Limitations of ratio analysis.......................................................................................................5
Reference....................................................................................................................................6

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What does your company do?
Products/Services delivered
Mondi Plc is a transnational packaging and paper group that is fully assimilated across the
packaging and paper value chain from growing of particularly wood and manufacture and
production of pulp as well as paper. This involves packaging paper along with uncoated fine
paper to the process of conversion of packaging papers into corrugated packaging, industrial
bags, extrusion coatings and release liner.
Size of the company
The company has around revenue of €7,096 million, operating income of €1018 million
during the year 2017 and has 25400 employees and can be considered to be a large firm
(Mondigroup 2018).
Where does it do its business?
The company Mondi Group can be considered to be a multinational firm that has roughly 102
operations across over and above 30 nations, primarily in central Europe, South Africa as
well as Russia (Mondigroup 2018).
How does it do its business?
The company operates in different segments. In essence, the operating segments of the firm
include packaging paper, fibre packaging, consumer packaging and uncoated fine paper
(Mondigroup 2018). The entire group identified business units to represent overall nature of
the underlying products that are produced.

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Chairman’s / Chief Executive’s reports within financial statements
Annual report of the firm presents the Joint Chairman’s Statement that helps in understanding
commitment of the company to grow responsibly. According to their opinion, the company
has a robust stratagem together with Mondi’s skilled and hard working teams, selection of
cost advantaged assets, different range of products and assimilation of various sustainability
risks as well as opportunities into different business decisions. The entire board of the
company Mondi Group strongly uphold adherence to the highest standards of corporate
governance. Also, over the past five years, Mondi has enhanced basic earnings per share by
approximately 12% on an average every year and considerably outperformed the average
figure of the peer group on total return of the shareholder (Mondigroup 2018). In addition to
this, the joint executive officers of the company are also of the view that the group has
capability to deliver long term value to their shareholders. Based on performance of the group
in the year 2017, the board have suggested a final ordinary dividend of roughly 42.90 euro
cents for every share (Mondigroup 2018).
Analysis of financial statement of the corporation Mondi Group
News stories’ for your firm
The news story published in fin 24 during December 2017 reveals the fact that International
and Packaging Group entered into an agreement to acquire around 100% of remaining shares
in particularly Powerflute that is a segment of Nordic Packaging and Container Holding in a
specific deal worth billions (Mondigroup 2018).
Need for ratio analysis
Financial ratio analysis can be considered to be a significant tool for assessing financial
health of a corporation (Price III
et al. 2011). Ratio analysis can be needed for analytically

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evaluating different aspects of the firm Mondi’s operating as well as financial performance
namely level of efficiency, solvency, and liquidity along with profitability.
Benefits of ratio analysis
Ratio analysis can be considered to be an extensively utilized tool of evaluation of financial
statement (Dalnial
et al. 2014). This helps in establishment of numerical else wise
quantitative association between two different figures of a financial assertion to determine
strength along with weaknesses of corporation along with current position and historical
performance.
The benefits of ratio analysis in a business concern are as mentioned below:
-Trend analysis using ratio analysis may prove to be effective for forecasting as well as
planning various business actions of the upcoming period (Warshavsky 2012)
-Accounting ratio can also aid in the process of estimating diverse budgeted figures. For
instance, sales budget might be prepared with the assistance of evaluation of last sales
(Dechow
et al. 2011)
-Ratio analysis indicates towards degree of efficiency in the process of management and
utilization of assets.
-Again, ratios can also be considered to be effectual means of communication and play a
crucial role in enlightening about the position and progress made by the firm to the owners
else wise other parties (Dalnial
et al. 2014)

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Limitations of ratio analysis
-Ratios are enumerated from the information calculated from financial statements. Therefore,
financial assertion suffers from different limitations and might therefore affect the overall
quality of analysis of ratio.
-Financial statement delivers historical information and do not reflect present conditions.
Therefore, it is not effective in forecasting the future period (Nia 2015).
-Diverse accounting policies as regards inventory valuation, charge of depreciation and many
others can make the accounting data along with accounting ratios of two corporations non-
comparable
-There is also lack of standard for comparison. Essentially, no fixed standards can be
presented for idea ratios.

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Reference
Mondigroup. 2018.
Mondi Group. Retrieved 6 April 2018, from
https://www.mondigroup.com/
Dechow, P.M., Ge, W., Larson, C.R. and Sloan, R.G. 2011. Predicting Material Accounting
Misstatements*. Contemporary Accounting Research, accessed on 16 April 2016,
https://www.thecaq.org/sites/default/files/DECHOW_et_al-2011-
Contemporary_Accounting_Research.pdf
Price III, R.A., Sharp, N.Y. and Wood, D.A. 2011. Detecting and predicting accounting
irregularities: A comparison of commercial and academic risk measures. Accounting
Horizons, accessed on 16 April 2016, http://aaapubs.org/doi/10.2308/acch-50064?code=aaan-
site
Warshavsky, M. 2012. Analyzing earnings quality as a financial forensic tool. Financial
Valuation and Litigation Expert Journal, accessed on 16 April 2016,
http://www.indianjournaloffinance.co.in/index.php/IJF/article/view/122796
Dalnial, H., Kamaluddin, A., Sanusi, Z.M. and Khairuddin, K.S. 2014. Detecting Fraudulent
Financial Reporting through Financial Statement Analysis. Journal of Advanced Management
Science, accessed on 16 April 2016,
https://www.researchgate.net/profile/Hawa_Dalnial/publication/315806227_Detecting_Fraud
ulent_Financial_Reporting_through_Financial_Statement_Analysis/links/
58e6f5b74585152528de55df/Detecting-Fraudulent-Financial-Reporting-through-Financial-
Statement-Analysis.pdf

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Nia, S.H. 2015. Financial ratios between fraudulent and nonfraudulent firms: Evidence from
Tehran Stock Exchange. Journal of Accounting and Taxation, accessed on 16 April 2016,
http://www.academicjournals.org/article/article1424948569_Somayyeh.pdf