Assignment

2142 Words Mar 27th, 2016 9 Pages
UNIT 101 – FINANCIAL MANAGEMENT

LECTURER NAME

TOPIC NAME

Financial Analysis

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STUDENT NAME:
STUDENT ID:

I

EXECUTIVE SUMMARY

With steady sales in 2012, Orica's performance for the 2012 financial year looked promising. Analysing the Orica Financial Report 2012 shows that although sales were high, the expenses increased for the year, and their net profit dropped considerably. This report analyses Orica's overall performance for 2012. Utilising the data provided by their Income Statement, Balance Sheet and Cash Flow Statement, the financial analysis ratios: Liquidity, Efficiency, Profitability, Financing and
Investment ratios, are all calculated and analysed to present their financial standing at
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2
Table 2-4 - Financing Ratios................................................................................................................... 2
Table 2-5 - Market Ratios ....................................................................................................................... 2

IV

INTRODUCTION
“Orica is the world’s largest provider of commercial explosives and blasting systems to the mining and infrastructure markets, the global leader in the provision of ground support in mining and tunnelling and the leading supplier of sodium cyanide for gold extraction.”

This report provides a brief analysis of the financial performance and standing of Orica
Limited between 2011 and 2012 Financial Years through the use of Financial Analysis
Ratios. Using Orica's Financial Report 2012 and values from their 2011 report (to obtain yearly averages to remove the effect of seasonal fluctuations), the five key financing ratios are calculated:






The liquidity ratios indicate the company’s ability to pay off short term liabilities.
The efficiency ratios demonstration how effective the company’s payments and inventories are managed,
The profitability ratios show how well the company did in their overall performance, The financing ratios indicate how the company manages their long term solvency,
And the investment

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