Financial Statement Analysis Blackmores

Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

Assignment Word Count Student Details: Name Student Number Signature 1 Dikchhya Mishra K140712 EXECUTIVE SUMMARY: Blackmores is Australian leading natural health company. As Blackmore is committed to superior business performance. Blackmores strategic direction is to focused on delivering goods and continuous improvement to maintain Blackmores leading position and achieve ongoing success for company and shareholders. Blackmores group includes BioCeuticals, Pure Animal Well beings (PAW), Blackmores institute and international market.

They accomplish this by sourcing the highest quality ingredients from around the world, combined with innovative research and development to deliver products that have become industry standards in the health supplements sector (Blackmores, 2014).

This measures the relationship between net profits and sales of a firm. The net profit margin is indicative of management’s ability to operate the business with sufficient success not only to recover revenues of the period, the cost of merchandise or services, the expenses of operating the business and the cost of the borrowed funds, but also leave a margin of reasonable

In the financial year that ended June 2013, the total revenue was lower than that of 2014. The breakdown of

The cumulative net profit increase of about 50% (Sheet 1, cell L18) shows that Richardson’s net profit on

Consolidated Statements of Income (in thousands) 2003 2004 2005 Revenue Net sales Cost of goods sold Gross profit/(loss) Gross margin Operating expenses Sales and marketing Engineering and product development General and administrative Total operating expenses Operating income/loss Other income/expense Interest income/expense Other income/(expense) Income before provision for income taxes Income taxes Net income/(loss) Net margin 61,529 41,072 20,457 33.2% 64,063 43,155 20,908 32.6% 60,144 45,835 14,309 23.8%

Blackmores Limited is an industry leader in both natural health and research, basing its principle activity on the development and marketing of health products and natural supplements; and it has been an industry leader in Australia for more than 70 years. The Company had its beginnings in the 1930s. The company currently has over 150 products, catering for all areas in natural health and vitamins.

The unit cost per bale appears to be falling which would agree with the General Manager’s alternative cost report. It’s hard to accurately compare the costs of producing each bale if total costs aren’t taken into account. Basing the overhead costs on a

They may produce some famous products and have loyalty customers. For the mature firms, they have larger assets, higher payout ratio and higher revenue and net income. Blackmores has nearly 300 million of asset and the dividend payout ratio is 75 percent. In addition, Blackmores also stay in the leader position of revenue and net income aspects within the industry. The profit changes on prior year in recent 5 years are 12 percent, 1.8 percent, -10 percent, 1.8 percent and 81 percent. The 81 percent increase in the profit is because of entering the Chinese market and it quite stable in the previous 4 years. Therefore, Blackmores could be classified as a mature

The breakdown of the total revenue includes the consumers of $1,667,000 ; industrial of $1,295,000 ; coal of $1,064,000 ; and agricultural of

In 2009, the operating profit was 3.56% which was slightly above than the previous year. After deducting all the expenses, the left amount is the net profit and the proportion of net profit in respect to total revenue is the net profit margin. Sainsbury’s net profit margin for the years 2009, 2008 and 2007 were 1.53%, 1.84% and 1.89% respectively. The management thinks that the tough market condition and the other competitors with very cheap pricing have pushed them to squeeze their profit margin ratio. The graph below shows the Return on Capital Employed as well. The ROCE gives the idea about how much return a company is making on its used capital. (investorwords.com) The ROCE for the company was 9.46%, 7.10% and 7.59% for the years 2009, 2008 and 2007 respectively. The year 2009 proved to be a little bit more in context of return on capital employed.

The author has chosen to analyse and evaluate the business and financial performance of AstraZeneca.

The financial reports are in the business tools (such as Boston Matrix and Ratio Analysis) to evaluate the firm and to decide a course of action. Non- financial tools such as the SWOT and marketing and promotion mix were also used.