Financialmanagement

Financialmanagement

• Submitted By: matttoon
• Date Submitted: 02/02/2014 7:52 PM
• Words: 7361
• Page: 30
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UNIT PDM 101
FINANCIAL MANAGEMENT

FINANCIAL ANALYSIS OF ORICA

Due Date: 2 December, 2013

Name: Matt Toon

Student ID: 864166

All answers have been rounded up to two decimal places.

1.0 QUESTION 1 3
1.1 Current ratio 3
1.2 Quick asset ratio 4
1.3 Average inventory turnover 5
1.4 Average collection period 6
1.5 Cash flow ratio 7
1.6 Equity ratio 8
1.7 Debt ratio 9
1.8 Interest cover 10
1.9 Fixed charges cover 11
1.10 Return on assets 12
1.11 Return on sales 13
1.12 Return on Equity 14
1.13 Sales Turnover 15
1.14 Earnings per share 16
1.15 Price/earnings ratio 17
1.16 Dividend yield 18
1.17 Price/book ratio 20
1.18 Summary of Calculated Ratios 21
2.0 QUESTION 2 22
2.1 Short Term Financial Position 24
2.2 Long Term Financial Position 27
2.3 Operating Profitability 30
2.5 Ratios incorporating share prices 34
2.6 CONCLUSIONS 35
2.7 Acknowledgements 36

QUESTION 1
Calculate the following ratios for 2011 and 2012:
Current ratio

2011
Current assets = \$106,594,000.00
Current Liabilities = \$53,592,000.00

Current (working capital) ratio = 1.99:1

2012
Current assets = \$111,784,000.00
Current Liabilities = \$48,593,000.00

Current (working capital) ratio = 2.30:1

*

Quick asset ratio

*

2003
Current assets = \$106,594,000.00
Stock and prepayments = \$31,661,000.00
Current Liabilities = \$53,592,000.00
Bank overdraft = \$0.00

Quick asset ratio = 1.40:1

2004
Current assets = \$111,784,000.00
Stock and prepayments = \$34,241,000.00
Current Liabilities = \$48,593,000.00
Bank overdraft = \$0.00