Financial Performance of The BEST Pty Ltd - Research Paper Example

Only on StudentShare

Extract of sample
Financial Performance of The BEST Pty Ltd

The culprit can be seen to be the ballooning of expenses. It should be noted that depreciation and amortization registers 165% growth while other selling and administration expense records higher growth of 178%. To make matters worse, finance costs more than tripled at 355% from 2003 to 2007.
Turning to the balance sheet accounts of the business organization, it should be noted that the mounting finance costs can be traced to the ballooning of assets which is unmatched by the growth in equity. This indicates that the company's acquisition of asset is financed by the more costly liabilities. Logically, when Best resort to its creditors to finance the acquisition of its assets, it incurs the obligation to pay interest at specific intervals thus boosting its finance cost. The company's cash account grew weakly at 18% during the seven-year period.
Table 2 highlights the financial ratios of Best from 2003 to 2007 utilizing the selected data provided. In terms of profitability, the year 2007 saw a decline both in return to assets and return to ordinary shareholders. It should be noted that this decline indicates the company's inability to create net income which adds to shareholder wealth and value to its assets. ...Show more

Summary

The assessment of the financial performance of a business organization is paramount in gaining an understanding of the strategies which will make it succeed. In order to shed light on the performance of The BEST Pty Ltd (Best), this report will utilize two techniques namely, trend analysis and financial ratio analysis.
Author : marlene56
Financial Performance of The BEST Pty Ltd essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Financial Performance of The BEST Pty Ltd"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Analysis of Marvel Toys Pvt. Ltd
Contents Particulars Pg. No. Executive Summary 4 Introduction 6 Discussion 6 Conclusion 13 References 16 Presentation 17 Executive Summary: Marvel toys private ltd deals in the import and export business from China to throughout UAE. It operates through a warehouse in Dubai Jabel Ali Free Trade Area.
10 pages (2500 words) Research Paper
Credit and Lending Decisions
Sullivan CEO 3,169,277 133,333 200,000 Thomas C. Ford NED 26,477 133,333 200,000 Henry T.S. Price NED 24,772 67,554 100,000 as at 30 June 2010 Company Secretary: Gregg W. Fitzgerald Major Shareholders: Name of Investor Percentage Shareholdings MG Investments 19.1% Alliance Life Common Fund 18.1% Baker Steel 10.4% Merrill Lynch 10.1% Accorn Capital 6.5% as at February 2011 Financing Proposed: The purpose of this submission is to explore the possibility of offering a $30mn loan to Resolute Mining Ltd for the purpose of exploring the potential of gold mines near the redeveloped mine (Syama) in Western Africa.
14 pages (3500 words) Research Paper
Financial Performance
Banks and financial institutions are eager to know status of the company in deciding whether or not to give loan to the company; stockbrokers are concerned if the stock is going to be profitable or will it be a good buy. In the same way, manufacturers are making decisions on whether to extend credit to the company.
2 pages (500 words) Research Paper
The financial performance of McDonalds
One of the biggest success stories in American business history is the hamburger giant McDonald’s. The firm is a fast food restaurant that operates as a multinational corporation. The business model used by the company is franchising. The organization has been extremely successful since its inception due to the fact that it has quality food at affordable prices.
3 pages (750 words) Research Paper
Financial Analysis of Bluescope Steel Ltd and Onesteel Ltd Australia
The first part of the report provide an overview of each of the two companies under review, section two of each section analyses each of the companies by focusing on the profitability, liquidity and solvency ratios. Globalization, the new information technology, and deregulation of financial markets and the quest for market dominance have eased the provision and search of finance.
11 pages (2750 words) Research Paper
Performance and reward management systems at Nestl Australia Ltd. (NAL)
Appreciation is also given to all NAL employees who completed the survey with specific gratitude to the three interviewees for their involvement with this work. The company chosen for this research report is Nestlé
4 pages (1000 words) Research Paper
Credit and Lending Decisions
The company is engaged in gold mining and prospecting and exploration for minerals. It operates three gold mines in Australia, East Africa and West Africa. Resolute Mining is currently un-hedged and therefore the gold produced by the company has full exposure
14 pages (3500 words) Research Paper
Healthcare Financial and Clinical Performance
Metrics are used to evaluate care and accurately measure performance of an organization. Selecting an appropriate metrics is critical to the provision of health as it requires multitude of skills, experiences, and technologies. Metrics to be used should project a balance between the organization’s financial and clinical gains.
1 pages (250 words) Research Paper
Best practices in performance appraisal in government organizations
Performance appraisal helps management to give a critical feedback of employee’s performances based on their job responsibilities. This analysis helps employees to assess their performances and
20 pages (5000 words) Research Paper
Financial analysis for Performance management
It serves to show the success of the merger. Game Digital plc debt-equity-ratio can be used to assess the amount of capital goes into its accounts in the form of loans and determine the
2 pages (500 words) Research Paper
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT