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7/28/2019 Accounting Part B
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The Big FiveThe Future is Here.
Business Valuation ReportConfidential
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ASSIGNMENT PART B
James M. Myers, CEO of Petco.
Subject Code: ACCT10001 Subject Name: Accounting Reports andAnalysis
Student ID Number: Student Name:
Assignment Name or Number:
Student ID Number Student Name
1. 640840 Wei Ming Lian
2. 639379 Yi Yang Lu
3. 636277 Adrian Agisilaou4. 635953 Rachel Tan
5.
6.
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Executive Summary
This report provides an assessment of the current and prospective profitability, liquidityand financial stability of Company Alpha and Company Beta. Methods of analysisinclude trend, and vertical analysis as well as ratios such as Debt, Current and Quick
ratios. All calculations can be found in the appendices. Results of data analyzed show that profitability for both companies have decreased. The findings indicate Company Beta isin an extremely risky position where it the company is unable to pay off its current debtsrelative to Company Alpha as it depends heavily on debt funding whereas CompanyAlpha relies on equity funding. Based on the analysis conducted, Company Alpha would be a better investment as it has lower risk and is more favorable for takeover despite itsfalling EBIT, which is the only concern of this company. This can be remedied throughan improved management of expenses. The almost matured loans of Company Alpha alsoindicate that upon takeover, loan repayment amounts would be relatively low comparedto Company Beta.
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Table of contents1. Introduction2. Findings and discussion
a. Company Alphai. Profitability
ii.
Asset efficiencyiii. Liquidityiv. Gearing and long term stabilityv. Market performance
b. Company Betai. Profitability
ii. Asset efficiencyiii. Liquidityiv. Gearing and long term stabilityv. Market performance
3. Conclusions
4.
Recommendations
List of tables and charts used
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1. Introduction
This report is being issued to James M. Myers, the CEO of Petco. Our aims in producingthis report is to provide insightful information on which company that Petco shouldchoose to invest in, with justified reasoning. Furthermore, the report will aim to provide
information on how each of these companies’ performances can be improved.
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2. Findings and Discussion
a. Company Alphai. Profitability
Our findings indicate that the profitability of Company Alpha has been dropping overall.The ROA and ROE has experienced significant decreases in the past four years. This isdue to a fall in our EBIT which has been traced back not the falling sale figures, butrather to a rise in certain expenses; primarily marketing and employee benefits, whichhave risen by $214,000 (159%) and $304,000 (34%) respectively. (Past four years) Totaland equity have been holding consistent during this period therefore it is the change inEBIT that has dictated that has dictated the changes in profitability. The expenseshighlighted above are indicative to the companies attempts to increase sales revenuethrough the increase of advertising under the marketing expenses and also the increase of staff. However, we see that this has proven to rather inefficient as the increase sales of $1,490,000 (11%) compared against the market expenses (159%). The increase in
marketing is not proportionate with the increase in sales, and therefore there is inefficientallocation of resources. This has lead to lower profits despite the increase in sales.
The GPM decreased slightly due to the increase in cost price not being reflected in selling price. Therefore, this has adversely affected the profitability of the firm. The profitmargin has decreased due to the EBIT decreasing at a greater proportion than the increasein sales revenue. EBIT decreased $457,000 (35%) over the past four years, compared tothe increase in sales revenue $1,490,000 (11%).
The findings for profitability show that our sale mark up for generation of revenue is notthe main problem in this decrease in profitability, rather it is in the inefficient allocationof resources due to inefficient spending in marketing and employee benefits.
ii. Asset efficiency
The asset turnover has increased due to a increase in sales revenue and a decrease in atotal assets. This has occurred due to depreciation of PPE. The inventory turnover increased as a result of stock increasing at a greater rate than cost of sales. This was dueto the fact that the company was purchasing more stock than it was able to sell; the proportion of sales relative to the amount of stock purchase has decreased over the pastfour years.
The trade debtors have increased at a greater proportion than sales revenue. The increasein debtor’s turnover is explained by the increase in regular customers, indicating agrowing customer base. The company’s asset efficiency is not yet at its optimal level, dueto stock overflow and inefficient mark up of prices. The debtors turnover maintains a positive outlook.
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iii. Liquidity
The current ratio has decreased even though current assets and current liabilities haveshown increases. The company’s trade and other payables and loans have increased at agreater proportion to current assets. However, the current ratio still maintains a healthy
ratio of 1.58:1.
Quick Asset Ratio has dropped from 0.80 to 0.54 displaying a growing dependency oninventory to make up current assets and a decrease in other current assets whichcontribute the liquidity of the company. This falling liquidity is due to too much stock which in turn has increased trade payables.
Liquidity is not optimal shape as the firm is very dependent on sales through inventory tohelp its liquidity.
iv. Gearing and long term stability
There is a stable equity and debt ratio, with the firm relying more on an equity reliedmodel, rather than debt funded business model. The total liabilities have fallen due toloans almost reaching full maturing and increase in total equity due to increase in sales.
Interest coverage has fallen due to EBIT decreasing at a greater rate than net financingcosts. However, overall gearing of the company is quite stable because of the fact thatcompany relies more on equitable funding rather than debt. The main concern of thecompany is due to the company’s inability to generate consistent EBIT due to inefficientallocation of expenses.
v. Market performance
The company’s market performance outlook has fallen, primarily due to the fallen EBIT.
Earnings per share and dividends per share have fallen, which has discouragedshareholders from purchasing shares. However, the NTAB holds a stable figureindicating that the company has a rather solid ordinary share holders’ equity. Overall,
although market performance has fallen, this does not indicate poor performance of the business, rather, only the poor allocation of expenses. Despite a high price earnings ratio,the share price is asking for is reasonable as the company is funded mostly by equityrather than debt and therefore there is less risk involved in investing into company Alpha.
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b. Company Betai. Profitability
ROA has fallen, due to our inventory increasing at a greater proportion than our EBIT.However, ROE has increased due to EBIT increasing at a greater rate than equity. Thisincrease in EBIT is due to an increase in sales, whereas the increase in equity is duehigher reserves from asset revaluations. There has been a large increase in inventory thana greater rate than EBIT, which in turn has lead to the increase in ROA. It is not profitable to hold on to a large amount of inventory as storage expenses and maintenanceexpenses will be incurred.
The GPM shows a very stable ratio because of a stable mark up as the mark up has beenconsistent with the cost of sales. Profit margin has decreased due to a higher salesrevenue but a fallen EBIT figure, which is due to a wage rise of large proportions. The
employee costs have increased a lot proportionally by (2131%) against sales revenue of (1274%). This has contributed to our overall fall in profitability.
ii. Asset efficiency
ATO has shown an increase, as sales revenue has increased at a greater proportion thataverage total assets. The company’s inventory turnover has increased because the average
total assets are greater than that of the cost of sales; a significant surplus in stock.
Debtors turnover has been stable in the past 3 years as the level of credit sales is proportionately the same to the level of sales that has been generated. Asset efficiencyhas not improved or deteriorated.
iii. Liquidity
Current ratio has increased due to our large increase in inventory (1904%) against a slightincrease in current liabilities. Our quick asset ratios have increased, however, it is muchlower than current ratio which therefore identifies that the company is highly reliant oninventory for liquidity demands. Should the loans which are at present non-currentliabilities, become current liabilities the current ratio will reduce to less than 0.2.
iv. Gearing and long term stability
The debt ratio has increased dramatically over the past four years indicating that majorityof the business’ assets are funded by liabilities, mainly of the form of interest bearingloans and borrowings (69% of total assets). This is a very risk form of funding, especiallyshould the debt ratio forgo above 75% as is likely to occur according to current trends inthe next few months as all of these non-current liabilities would become current. Themajority of the remaining liabilities and equities are made up of reserves (the asset
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revaluation) (19%). There is no guarantee that these reserves will be able to be converted back into cash at the amounts reported in the balance sheet.
v. Market performance
The market performance appears strong, with the earnings per share increasingsignificantly as the profit improves. A dividend payout ratio exceeding 100% indicatesthat all profits are going towards paying dividends. This is characteristic of the companywithdrawing all of its profits from its operations. Despite the low price earnings ratio, theshare price that the company is asking for is unreasonable as the company is fundedmostly by debt, and these debts will have repaid by the new owner of the business.
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3. Conclusions
Company Alpha has a falling EBIT, which reflects it poor profitability ratio, due to poor management of expenses. In contrast, Company Beta shows an exponential rise in itsEBIT which at first glance seems profitable; however, further analysis shows company
beta follows a debt focused model that relies heavily on loans to fund its business model.Whereas, company Alpha is funded mostly though equitable funding, with fundingcoming from retained profits and early contributions. With company Beta approaching its75% debt limit, it is in an extremely risky position where the company is unable to payoff its current debts.
There has been a decrease in dividends and almost fully matured loans for companyAlpha. Whereas for company beta, the amount of dividends paid are being increased, andmore loans are being taken out with minimal repayments.
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4. Recommendations
The Big Five recommends that you invest in Company Alpha, as it is much lower risk as
it is equitably funded compared to the high risk and high debt business model of
Company Beta. The large equity reserves indicate a stable gearing and which is favorable
for a takeover. Furthermore, it is ready for take over because there are less shareholdersthan company beta, therefore there is more power for the controlling business to make
decisions. Although Company Alpha shows a falling EBIT, it is the only concern of this
company. This can be easily improved by better management of expenses; primarily
better allocation of its resources and the change in sales should better reflect the change
in expenses. The almost matured loans means that a takeover of company Alpha means
that the repayment amounts are comparatively low when looking at company Beta.
Furthermore, there is potential for greater markup in sale of stock and there is a growth in
regular customer base.
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Appendix A
i. Company Alpha
Year $2,012 $2,011 $2,010 $2,009 $2,008 Sales Revenue $14,831 $14,347 $13,776 $13,397 $13,341
Cost of sales $11,372 $10,925 $10,430 $10,113 $10,021
Gross profit $3,459 $3,422 $3,346 $3,284 $3,320
Expenses
Administrative $212 $205 $199 $190 $184
Depreciation $107 $138 $121 $167 $164
Marketing $349 $273 $219 $169 $135
Occupancy/Insurance expenses $760 $730 $716 $688 $653
Employee Benefits $1,188 $1,086 $930 $855 $884
Total expenses $2,616 $2,432 $2,185 $2,069 $2,020
Earnings Before Interest and Tax $843 $990 $1,161 $1,215 $1,300
Finance income $10 $10 $10 $9 $9
Finance costs $93 $100 $111 $114 $129
Profit Before Tax $760 $900 $1,060 $1,110 $1,180
Income tax $228 $270 $318 $333 $354
Net Profit After Tax $532 $630 $742 $777 $826
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Year 2012 2011 2010 2009 2008
Sales Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales 76.68% 76.15% 75.71% 75.49% 75.11%
Gross profit 23.32% 23.85% 24.29% 24.51% 24.89%
Expenses
Administrative 1.43% 1.43% 1.44% 1.42% 1.38%
Depreciation 0.72% 0.96% 0.88% 1.25% 1.23%
Sales and Marketing 2.35% 1.90% 1.59% 1.26% 1.01%
Occupancy expenses 5.12% 5.09% 5.20% 5.14% 4.89%
Employee Benefits 8.01% 7.57% 6.75% 6.38% 6.63%
Total expenses 17.64% 16.95% 15.86% 15.44% 15.14%
EBIT 5.68% 6.90% 8.43% 9.07% 9.74%
Finance income 0.07% 0.07% 0.07% 0.07% 0.07%
finance costs 0.63% 0.70% 0.81% 0.85% 0.97%
profit before tax 5.12% 6.27% 7.69% 8.29% 8.84%
income tax 1.54% 1.88% 2.31% 2.49% 2.65%
profit after tax 3.59% 4.39% 5.39% 5.80% 6.19%
Year 2012 2011 2010 2009 2008
Sales Revenue 111.17% 107.54% 103.26% 100.42% 100.00%
Cost of sales 113.48% 109.02% 104.08% 100.92% 100.00%
Gross profit 104.19% 103.07% 100.78% 98.92% 100.00%
Expenses
Administrative 115.22% 111.41% 108.15% 103.26% 100.00%
Depreciation 65.24% 84.15% 73.78% 101.83% 100.00%
Sales and Marketing 258.52% 202.22% 162.22% 125.19% 100.00%
Occupancy expenses 116.39% 111.79% 109.65% 105.36% 100.00% Wages 134.39% 122.85% 105.20% 96.72% 100.00%
Total expenses 129.50% 120.40% 108.17% 102.43% 100.00%
EBIT 64.85% 76.15% 89.31% 93.46% 100.00%
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111.11% 111.11% 111.11% 100.00% 100.00%
finance costs 72.09% 77.52% 86.05% 88.37% 100.00%
profit before tax 64.41% 76.27% 89.83% 94.07% 100.00%
income tax 64.41% 76.27% 89.83% 94.07% 100.00%
profit after tax 64.41% 76.27% 89.83% 94.07% 100.00%
Year 2012 2011 2010 2009 2008
Current Assets Cash and cash equivalents $183 $194 $204 $234 $254
Trade and other receivables (net) $130.0 $121.0 $93.0 $87.0 $67.0
Inventories $570 $527 $493 $471 $441
Other assets $44 $43 $42 $40 $37
Total Current Assets $927 $885 $832 $832 $799
Non Current Assets
Property, Plant and Equipment (net) $2,422 $2,487 $2,578 $2,671 $2,800
Total Non Current Assets $2,422 $2,487 $2,578 $2,671 $2,800
Total Assets $3,349 $3,372 $3,410 $3,503 $3,599
Current Liabilities
Trade and other payables $413 $341 $304 $293 $271
Interest-bearing loans and borrowings $119 $83 $57 $43 $37
Income Tax Payable $32.0 $67.0 $37.0 $46.0 $28.0
Provisions $21 $20 $19 $17 $16
Total Current Liabilities $585 $511 $417 $399 $352
Non Current Liabilities Interest-bearing loans and borrowings $8 $127 $210 $267 $310
Provisions $142 $138 $134 $126 $112
Total Non Current Liabilities $150 $265 $344 $393 $422
Total Liabilities $735 $776 $761 $792 $774
Net Assets $2,614 $2,596 $2,649 $2,711 $2,825
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Equity
Contributed equity $1,000 $1,000 $1,000 $1,000 $1,000
Reserves $840 $720 $600 $480 $360
Retained profits $774 $876 $1,049 $1,231 $1,465
Total Equity $2,614.
0 $2,596.
0 $2,649.
0 $2,711.
0 $2,825.
0
Dividends
Opening Retained Profit $876 $1,049 $1,231 $1,465
Add Profit $532 $630 $742 $777
reserve transfer -$120 -$120 -$120 -$120
Available $1,288 $1,559 $1,853 $2,122
less dividends $514 $683 $804 $891
Closing retained profit $774 $876 $1,049 $1,231
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Year 2012 2011 2010 2009 2008
Current Assets
Cash and cash equivalents 5.46% 5.75% 5.98% 6.68% 7.06%
Trade and other receivables 3.88% 3.59% 2.73% 2.48% 1.86%
Inventories 17.02% 15.63% 14.46% 13.45% 12.25%Other assets 1.31% 1.28% 1.23% 1.14% 1.03%
Total Current Assets 27.68% 26.25% 24.40% 23.75% 22.20%
Non Current Assets 0.00% 0.00% 0.00% 0.00% 0.00%
Property, Plant and Equipment (net) 72.32% 73.75% 75.60% 76.25% 77.80%
Total Non Current Assets 72.32% 73.75% 75.60% 76.25% 77.80%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Trade and other payables 12.33% 10.11% 8.91% 8.36% 7.53%
Interest-bearing loans and borrowings 3.55% 2.46% 1.67% 1.23% 1.03%
Income Tax Payable 0.96% 1.99% 1.09% 1.31% 0.78%
Provisions 0.63% 0.59% 0.56% 0.49% 0.44%
Total Current Liabilities 17.47% 15.15% 12.23% 11.39% 9.78%
Non Current Liabilities
Interest-bearing loans and borrowings 0.24% 3.77% 6.16% 7.62% 8.61%
Provisions 4.24% 4.09% 3.93% 3.60% 3.11%
Total Non Current Liabilities 4.48% 7.86% 10.09% 11.22% 11.73%
Total Liabilities 21.95% 23.01% 22.32% 22.61% 21.51%
Net Assets 78.05% 76.99% 77.68% 77.39% 78.49%
Equity
Contributed equity 29.86% 29.66% 29.33% 28.55% 27.79%
Reserves 25.08% 21.35% 17.60% 13.70% 10.00%
Retained profits 23.11% 25.98% 30.76% 35.14% 40.71%
Total Equity 78.05% 76.99% 77.68% 77.39% 78.49%
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Year 2012 2011 2010 2009 2008
Current Assets
Cash and cash equivalents 72.05% 76.38% 80.31% 92.13% 100.00%
Trade and other receivables 194.03% 180.60% 138.81% 129.85% 100.00%
Inventories 129.25% 119.50% 111.79% 106.80% 100.00%Other assets 118.92% 116.22% 113.51% 108.11% 100.00%
Total Current Assets 116.02% 110.76% 104.13% 104.13% 100.00%
Non Current Assets
Property, Plant and Equipment (net) 86.50% 88.82% 92.07% 95.39% 100.00%
Total Non Current Assets 86.50% 88.82% 92.07% 95.39% 100.00%
Total Assets 93.05% 93.69% 94.75% 97.33% 100.00%
Current Liabilities
Trade and other payables 152.40% 125.83% 112.18% 108.12% 100.00%
Interest-bearing loans and borrowings 321.62% 224.32% 154.05% 116.22% 100.00%
Income Tax Payable 114.29% 239.29% 132.14% 164.29% 100.00%
Provisions 131.25% 125.00% 118.75% 106.25% 100.00%
Total Current Liabilities 166.19% 145.17% 118.47% 113.35% 100.00%
Non Current Liabilities
Interest-bearing loans and borrowings 2.58% 40.97% 67.74% 86.13% 100.00%
Provisions 126.79% 123.21% 119.64% 112.50% 100.00%
Total Non Current Liabilities 35.55% 62.80% 81.52% 93.13% 100.00%
Total Liabilities 94.96% 100.26% 98.32% 102.33% 100.00%
Net Assets 92.53% 91.89% 93.77% 95.96% 100.00%
Equity
Contributed equity 100.00% 100.00% 100.00% 100.00% 100.00%
Reserves 233.33% 200.00% 166.67% 133.33% 100.00%
Retained profits 52.83% 59.80% 71.60% 84.03% 100.00%
Total Equity 92.53% 91.89% 93.77% 95.96% 100.00%
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2012 2011 2010 2009
ROA 25.09% 29.19% 33.59% 34.22%
ROE 20.42% 24.02% 27.69% 28.07%
GPM 23.32% 23.85% 24.29% 24.51%
PM(EBIT) 5.68% 6.90% 8.43% 9.07%
Current Ratio 1.58 1.73 2.00 2.09 :1
Quick Ratio 0.54 0.62 0.71 0.80 :1
Acc Rec Turn 118.18 134.08 153.07 173.99 times
Av collection period 3.09 2.72 2.38 2.10 days
Inventory Turnover 20.73 21.42 21.64 22.18 times
Av time to sell 17.60 17.04 16.87 16.46 days
Asset Turnover 4.41 4.23 3.99 3.77 times
Debt 21.95% 23.01% 22.32% 22.61%
Equity 78.05% 76.99% 77.68% 77.39%
Debt to Equity 0.28 0.30 0.29 0.29 times or
%
Interest Coverage 10.16 11.00 11.50 11.57 times or
%
Net tangible asset backing per
share $2.61 $2.60 $2.65 $2.71
Earnings per share $0.53 $0.63 $0.74 $0.78
Dividends per share $0.51 $0.68 $0.80 $0.89 Dividend pay out ratio 96.62% 108.41% 108.36% 114.67%
Price earnings ratio 9.40 share price unknown
Share Price $5.00 share price unknown
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Year 2012 2011 2010 2009 2008
Total Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Sales Revenue 65.49% 65.62% 65.71% 65.75% 65.96%
Cost of sales 34.33% 34.29% 33.89% 33.77% 33.39%
Gross Sales profit 31.17% 31.33% 31.82% 31.97% 32.58%
Veterinary Services 34.51% 34.38% 34.29% 34.25% 34.04%
Cost of Veterinary Services 17.16% 17.37% 17.25% 17.11% 16.86%
Gross Veterinary Profit 17.34% 17.01% 17.04% 17.15% 17.18%
Gross Profit 48.51% 48.34% 48.87% 49.12% 49.76%
Loss on sale of NCA 1.46% 0.00% 0.00% 0.00% 0.00%
Expenses Administrative 4.57% 4.21% 4.01% 2.72% 2.51%
Depreciation 0.98% 0.98% 0.91% 0.84% 0.65%
Sales and Marketing 5.57% 5.58% 5.20% 4.85% 4.78%
Occupancy expenses 5.69% 5.48% 4.68% 5.25% 3.81%
Wages 15.81% 14.99% 13.32% 10.02% 9.81%
Total expenses 32.62% 31.23% 28.12% 23.68% 21.56%
EBIT 14.43% 17.11% 20.75% 25.44% 28.20%
Finance income 0.21% 0.25% 0.34% 0.32% 0.08%
finance costs 3.56% 3.68% 3.28% 2.92% 2.35%
profit before tax 11.07% 13.68% 17.81% 22.84% 25.93%
income tax 3.32% 4.10% 5.34% 6.85% 7.78%
profit after tax 7.75% 9.58% 12.47% 15.99% 18.15%
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Year 2012 2011 2010 2009 2008
Sales Revenue 1373.59% 771.99% 398.77% 201.60% 100.00%
Cost of sales 1422.33% 797.09% 406.31% 204.61% 100.00%
Gross Sales profit 1323.63% 746.27% 391.04% 198.51% 100.00%
Veterinary Services 1402.62% 783.81% 403.33% 203.57% 100.00%
Cost of Veterinary Services 1408.65% 799.52% 409.62% 205.29% 100.00%
Gross Veterinary Profit 1396.70% 768.40% 397.17% 201.89% 100.00%
Gross Profit 1348.86% 753.91% 393.16% 199.67% 100.00%
Expenses
Administrative 2519.35% 1300.00% 638.71% 219.35% 100.00%
Depreciation 2087.50% 1175.00% 562.50% 262.50% 100.00%
Sales and Marketing 1611.86% 905.08% 435.59% 205.08% 100.00% Occupancy expenses 2065.96% 1117.02% 491.49% 278.72% 100.00%
Wages 2230.58% 1185.95% 543.80% 206.61% 100.00%
Total expenses 2093.61% 1124.44% 522.18% 222.18% 100.00%
EBIT 707.76% 470.69% 294.54% 182.47% 100.00%
finance costs 2096.55% 1213.79% 558.62% 251.72% 100.00%
profit before tax 590.63% 409.38% 275.00% 178.13% 100.00%
income tax 590.63% 409.38% 275.00% 178.13% 100.00%
profit after tax 590.63% 409.38% 275.00% 178.13% 100.00%
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Year 2012 2011 2010 2009 2008
Current Assets
Cash and cash equivalents $412 $242 $91 $37 $19
Trade and other receivables (net) $63 $38 $21 $8 $3
Inventories $1,663 $960 $419 $205 $83
Other assets $187 $95 $48 $21 $11
Total Current Assets $2,325 $1,335 $579 $271 $116
Non Current Assets
Plant and Equipment (net) $14,254 $9,193 $6,178 $3,143 $1,454
Intangible Assets $1,000 $770 $520 $350 $200
Total Non Current Assets $15,254 $9,963 $6,698 $3,493 $1,654
Total Assets $17,579 $11,298 $7,277 $3,764 $1,770
Current Liabilities
Trade and other payables $619 $384 $148 $77 $36
Income Tax Payable $254.0 $142.0 $98.0 $50.0 $27.0
Provisions $67 $40 $22 $15 $9
Interest-bearing loans and borrowings $23 $12 $8 $5 $3 Total Current Liabilities $963 $578 $276 $147 $75
Non Current Liabilities
Interest-bearing loans and borrowings $12,163 $7,687 $4,976 $2,142 $584
Provisions $51 $31 $18 $12 $10
Total Non Current Liabilities $12,214 $7,718 $4,994 $2,154 $594
Total Liabilities $13,177 $8,296 $5,270 $2,301 $669
Net Assets $4,402 $3,002 $2,007 $1,463 $1,101
Equity
Contributed equity $1,000 $1,000 $1,000 $1,000 $1,000
Reserves $3,360 $1,950 $940 $380 $10
Retained profits $42 $52 $67 $83 $91
Total Equity $4,402 $3,002 $2,007 $1,463 $1,101
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Dividends
Opening Retained Profit $52 $67 $83 $91
Add Profit $1,323 $917 $616 $399
Reserve transfers $0 $0 $0 $0
Available $1,375 $984 $699 $490
less dividends $1,333 $932 $632 $407 Closing retained profit $42 $52 $67 $83
Year 2012 2011 2010 2009 2008
Current Assets
Cash and cash equivalents 2.34% 2.14% 1.25% 0.98% 1.07%
Trade and other receivables 0.36% 0.34% 0.29% 0.21% 0.17%
Inventories 9.46% 8.50% 5.76% 5.45% 4.69%
Other assets 1.06% 0.84% 0.66% 0.56% 0.62%
Total Current Assets 13.23% 11.82% 7.96% 7.20% 6.55%
Non Current Assets
Property, Plant and Equipment (net) 81.09% 81.37% 84.90% 83.50% 82.15%
Intangible Assets 5.69% 6.82% 7.15% 9.30% 11.30%
Total Non Current Assets 86.77% 88.18% 92.04% 92.80% 93.45%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Trade and other payables 3.52% 3.40% 2.03% 2.05% 2.03%
Income Tax Payable 1.44% 1.26% 1.35% 1.33% 1.53%
Provisions 0.38% 0.35% 0.30% 0.40% 0.51%
Total Current Liabilities 5.48% 5.12% 3.79% 3.91% 4.24%
Non Current Liabilities
Interest-bearing loans and borrowings 69.18% 68.03% 68.35% 56.91% 32.99%
Provisions 0.29% 0.27% 0.25% 0.32% 0.56%
Total Non Current Liabilities 69.48% 68.31% 68.63% 57.23% 33.56%
Total Liabilities 74.96% 73.43% 72.42% 61.13% 37.80%
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Net Assets 25.04% 26.57% 27.58% 38.87% 62.20%
Equity
Contributed equity 5.69% 8.85% 13.74% 26.57% 56.50%
Reserves 19.11% 17.26% 12.92% 10.10% 0.56%
Retained profits 0.24% 0.46% 0.92% 2.21% 5.14%
Total Equity 25.04% 26.57% 27.58% 38.87% 62.20%
Year 2012 2011 2010 2009 200
Current Assets
Cash and cash equivalents 600.00% 436.84% 321.05% 194.74% 100.00%
Trade and other receivables 2100.00% 1266.67% 700.00% 266.67% 100.00%
Inventories 2003.61% 1156.63% 504.82% 246.99% 100.00%
Other assets 1700.00% 863.64% 436.36% 190.91% 100.00%
Total Current Assets 1747.41% 1013.79% 473.28% 233.62% 100.00%
Non Current Assets
Property, Plant and Equipment (net) 1000.96% 643.33% 427.17% 216.16% 100.00%
Intangible Assets 500.00% 385.00% 260.00% 175.00% 100.00%
Total Non Current Assets 940.39% 612.09% 406.95% 211.19% 100.00%
Total Assets 993.28% 638.42% 411.30% 212.66% 100.00%
Current Liabilities
Trade and other payables 1719.44% 1066.67% 411.11% 213.89% 100.00%
Income Tax Payable 940.74% 525.93% 362.96% 185.19% 100.00%
Provisions 744.44% 444.44% 244.44% 166.67% 100.00%
Total Current Liabilities 1284.00% 770.67% 368.00% 196.00% 100.00%
Non Current Liabilities
Interest-bearing loans and borrowings 2082.71% 1316.27% 852.05% 366.78% 100.00%
Provisions 510.00% 310.00% 180.00% 120.00% 100.00%
Total Non Current Liabilities 2056.23% 1299.33% 840.74% 362.63% 100.00%
Total Liabilities 1969.66% 1240.06% 787.74% 343.95% 100.00%
Net Assets 400.00% 272.84% 182.56% 132.88% 100.00%
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Equity
Contributed equity 100.00% 100.00% 100.00% 100.00% 100.00%
Reserves 33600.00% 19500.00% 9400.00% 3800.00% 100.00%
Retained profits 48.35% 59.34% 76.92% 91.21% 100.00%
Total Equity 400.00% 272.84% 182.56% 132.88% 100.00%
2012 2011 2010 2009
ROA 17.06% 17.64% 18.57% 22.95%
ROE 35.74% 36.61% 35.50% 31.12%
GPM 48.51% 48.34% 48.87% 49.12% PM(EBIT) 14.43% 17.11% 20.75% 25.44%
Current Ratio 2.41 2.31 2.10 1.84 :1
Quick Ratio 0.49 0.48 0.41 0.31 :1
Acc Rec Turn (not needed) 116.65 111.59 116.83 155.45 times
Av collection period 3.13 3.27 3.12 2.35 days
Inventory Turnover (not needed) 4.47 4.76 5.37 5.85 times
Av time to sell 81.69 76.63 68.03 62.35 days
Asset Turnover 1.18 1.03 0.89 0.90 times
Debt 74.96% 73.43% 72.42% 61.13%
Equity 25.04% 26.57% 27.58% 38.87%
Debt to Equity 2.99 2.76 2.63 1.57 times
Interest Coverage 4.30 4.99 7.07 9.77 times
Net tangible asset backing per share $3.40 $2.23 $1.49 $1.11
Earnings per share $1.32 $0.92 $0.62 $0.40
Dividends per share $1.33 $0.93 $0.63 $0.41
Dividend pay out ratio 101% 102% 103% 102%
Price earnings ratio 3.78 share price unknown
Share Price $5.00 share price unknown
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