ACCT1001 Presentation: South32 Limited Financial Performance Analysis

This presentation analyzes the financial performance of South32 Limited, an Australian mining and metals company. It begins with an overview of the company's history, products, size, and locations. The analysis examines key assets, liabilities, equity, income, and expenses, highlighting the impact of accounting conventions and managerial judgments on asset measurement. The presentation assesses the company's financial position through profitability, liquidity, and efficiency ratios, comparing performance over time. The analysis concludes with an assessment of the company's financial health and provides references to support the findings. The report covers the period up to 2019 and provides insights for prospective investors.

ACCOUNTING AND
FINANCE

INTRODUCTION
 In the following parts, history of 32 South limited, overview of
products or brands, size as well as location of the operation of
company is discussed.
 These parts also discuss the key assets, liabilities, earning, equity
class, expenditure performance, measurement of key assets as
well as management decisions.
 In these parts, the profitability ratios, liquidity ratios along with
efficiency ratios of 32 South limited are assessed.

Background of company
 South32 Limited is the mining as well as metals
organisation headquartered in Perth (Western Australia).
 This organisation is listed on Australian Securities Exchange.
 It has secondary listing on the London marketplace along with
Johannesburg bourse (Reuters, 2019).
 The organisation manufactures silver, alumina, zinc, aluminium,
manganese, lead, nickel, thermal coal along with coking coal.

Liabilities, assets, equity classes,
expenses and incomes
 From the annual report of company, it is found that the key
liabilities of organization is $4547 in 2019. It is analyzed that the
key liabilities were $ 4424 in 2018.
 It is analyzed that the equity of the organization is $ 10168 in
2019. In addition, it was $ 10709 in 2019.
 In 2019, the key assets of organization is $14715. It was $ 15133
in 2018 (Bloomberg, 2018).

 The expenses of South32 Limited are $ 7092 in 2019. They were $
6577 in year 2018.
 It means that the expenses of organisation have been enhanced from
year 2018 (Annual report, 2019).
 The income of South32 Limited is reduced in 2019. It was $ 1332 in
2018 and it was $ 389 in 2019 (Investing.com, 2018).
 Increasing expenses and reducing income reflecting the negative
position of the company.

Accounting conventions to affect
measurement of key assets
 The accounting conventions are helpful in assessing the financial
condition of the company.
 South32 Limited utilises the consistent accounting conventions.
 The corporation’s assets have been displayed from US dollars to
Australian dollars on the basis of accounting conventions.
 The € has displayed as the American dollars (Alexander, 2011).
 The significant information is recorded in the accounting convention.

Measurements of corporation by the managerial
judgments
 The expression “managerial judgment” is broader in its scope.
 The managerial judgment is considered as the procedure of
taking managerial decisions.
 It is capability of manager to utilize the judgment for resolving the
issues.
 As the leader of workstation, the manager is expected to create
judgment call ranging in the scope as well as effect from
negligible to game-changing.

Liquidity Ratio

Profitability Ratio

Efficiency Ratio

Conclusion
 From this presentation, it is assessed the financial condition of entity is
not good in marketplace
 It can also see that the company good revenues which was reducing
the profits.
 The organization does not have good assets.
 The company is not in good liquidity position.
 The debt of company is also not higher so they do not have burden.

References
Annual report (2019). 32South Limited. Retrieved from:
https://www.south32.net/docs/default-source/exchange-releases/annual-report-
2019.pdf?sfvrsn=8bb8d211_2
Bloomberg (2018). 32South Limited. Retrieved from :
https://www.bloomberg.com/profile/company/S32:SJ
Investing.com (2018). 32South Limited. Retrieved from:
https://au.investing.com/equities/south32-ltd-historical-data
Reuters (2019). 32South Limited. Retrieved from: https://www.reuters.com/companies/S32.AX