Blackmores Ltd

7582 WordsFeb 27, 201231 Pages
Table of Contents 1 introduction 1 2 2 3 Corporation Background 3 3.1 Organization 3 3.2 Market Position 3 3.3 Government Impact 4 3.4 Description of Competitors 4 4 Capital Structure 6 4.1 Blackmores’ Current & Historical Leverage 6 4.1.1 Debt to Equity Ratio 6 4.1.2 Degree of Financial Leverage and Operating Leverage 8 4.2 Capital Expenditure and Financing 9 4.3 Capital Structure Relative to Competitors 10 4.4 Bankruptcy Risk Assessment 11 4.5 Leverage Policy Summary 12 4.6 Is this the Optimal Leverage Policy? 13 5 Dividend Policy 14 5.1 Current and Recent History of Dividend Payment 14 5.2 Dividend policy comparing to comparable firms 14 5.3 Relevant Company Characteristics to its…show more content…
The organization currently employs over 500 staff in Australia, New Zealand and Asia. Blackmores principal activities include • Products: BKL has a growing range of products that cater for areas in natural health including: Arthritis; Joint, Bone and Muscle; Brain Health; Children 's Health; Cold, Flu and Immunity; Digestive Health; Energy; Everyday Health; Eye Health; Heart and Circulation; Men 's Health; Nails, Hair and Skin; Nutritional Oils; Stress Relief; Teen Health; Weight Management and; Women 's Health. • Services: A team of health experts are on hand to provide advice on natural healthcare, research findings, issues, news and information on products. • International Operations: Products are distributed in New Zealand, Malaysia, Thailand, Taiwan, Singapore and Hong Kong. 2 Market Position Through the examination of BKL in the past several years, the effect of the Global Financial Crisis is evident; however the senior level managers still indicated a positive attitude towards the development of BKL. The 2010 annual report pointed that, for the year ended 30 June 2010, BKL posted a net profit after tax of $24.3 million, an increase of 17% comparing to last year. In addition, Group revenue increased by 7% to $214.9 million; earnings before interest, tax, depreciation and
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