TELSTRA Student name – ID FIN600 TX YYYY Assignment – Company Executive Summary Contents Page Number 1 Introduction - Background and Business 2 2 Company Analysis - Current Financial performance,...

Hello, the assessment is to be made on company rio tinto. All the details are given in the case study report. Please go through it and make all the requirements complete. The required blank layout are attached for reference purpose.




TELSTRA Student name – ID FIN600 TX YYYY Assignment – Company Executive Summary Contents Page Number 1 Introduction - Background and Business 2 2 Company Analysis - Current Financial performance, economic outlook 3 Ratio Analysis 3.1 Profitability ratios 3.2 Efficiency ratios 3.3 Liquidity ratios 3.4 Gearing ratios 4 Recommendations and overall assessment 5 References/Bibliography Appendices – attached Excel Spreadsheet 1 Introduction 1.1 Background and Business Discussion 2 Company Analysis 2.1 Financial statements, Current Financial performance, economic outlook Discussion 3 Ratio Analysis 3.1 Profitability and Market ratios (see appendix for calculations) YYYY YYYY Industry average Return on assets % % % Return on equity % % % Net profit margin % % % Gross profit margin % % % Net Interest Income % % % Expense ratio/Cost to Income ratio % % % Cash return on sales % % % Earnings per share $ per share $ per share $ Price earnings ratio times times times Earnings yield % % % Dividends per share $ $ $ Discussion 3.3 Efficiency ratios (see appendix for calculations) YYYY YYYY Industry average Asset turnover times times times Cash return on assets times times times Fixed Asset turnover times times times Discussion 3.3 Liquidity ratios (see appendix for calculations) YYYY YYYY Industry average Current ratio xx:1 xx:1 xx:1 Quick ratio xx:1 xx:1 xx:1 Receivables turnover Days Days Days Average collection period Days Days Days Discussion 3.4 Gearing ratios (see appendix for calculations) YYYY YYYY Industry average Debt to equity ratio % % % Debt ratio % % % Equity ratio % % % Cash debt coverage % % % Interest cover ratio times times Times Discussion 4 Recommendations and overall assessment Discussion ENSURE YOU COVER THE BELOW IN YOUR DISCUSSION, USE EACH LINE AS A HEADING Discuss all the below in relation to ratios and information from reports. Has Year 1 been better than Year 2 for the company? Will the company succeed in the future? The likelihood of a merger or acquisition? Consider the relevant ethical considerations if the organisation becomes insolvent Suggest what should the company be doing help it succeed? The impact of the political competitive environment on the business External factors that need to be taken into consideration Would you invest in this company? 5 References/Bibliography Appendices – attached Excel Spreadsheet Company fin600 tX YYYY name: Student id: PAGE 7 Profitability Ratios Profitability and Market Ratios - COMPANY ASX CODE YYYYYYYYAverage for IndustryIndustry average to be provided by facilitator Return on AssetsProfit / Average total assetsProfit / ((Year 1 Total A + Year 2 Total A)/2)Profit /Year 2 Total A 00 0.00%0.00%result % Return on EquityProfit / Average equityProfit / ((Year 1 OE + Year 2 OE)/2)Profit /Year 2 OE 00 0.00%0.00% Net Profit MarginNet profit / Sales or revenueNP/ RevenueNP/ Revenue 00 0%0%result % Gross Profit MarginGross profit / Sales or revenueGP/ SalesGP/ Sales 00 0%0%result % Net Interest IncomeNet Interest Income / Average Earning AssetsNII / ((Year 1 earning A + Year 2 earning A)/2)NII / Year 2 earning A for banks only00 0.00%0.00%result % Expense ratioExpenses (excluding tax) / Net salesExp / RevenueExp / Revenue (using operating expenses/operating income)00 0%0%result % Cash return on salesNet cash flow from operating activity / Sales or Revenue$ op activities / REV$ op activities / REV 00 0%0result % Earnings per shareProfit for shareholders / Number of ordinary shares$xx per share$xx per share EPS taken from annual report Price earnings ratioShare price 30 June / Earnings per share$XX / EPS$XX / EPS share price 30 June taken from annual report0.00000.0000 XX timesXX timesresult times Earnings yieldEPS / Share price 30 JuneEPS / $XXEPS / $XX share price 30 June taken from annual report00 0.00%0.00%result % Dividends per shareDividends - Special dividends/ No of shares$XX per share$XX per share$xx per share (determined)DPS taken from annual report EPS taken from annual report DPS taken from annual report Efficiency Ratios Efficiency Ratios - COMPANY ASX CODE YYYYYYYYAverage for IndustryIndustry average to be provided by facilitator Asset turnoverSales / Average total assetsrevenue / ((Year 1 Total A + Year 2 Total A)/2)revenue / Year 2 Total A 00 xx timesxx timesresult times Cashflow return on assetsNet cash from op activities / Average total assets$ op activities/ A$ op activities/ A 00 result timesresult timesresult times Fixed-Asset Turnover RatioSales / Total non current assetsrevenue / Total NCArevenue / Total NCA 00 xx timesxx timesresult times Liquidity Ratios Liquidity Ratios - COMPANY ASX CODE YYYYYYYYAverage for IndustryIndustry average to be provided by facilitator Current RatioTotal current assets / Total current liabilitiesCA / CLCA / CL 00 XX:1XX:1XX:1 Quick Ratio(Total current assets - Inventory) / Total current liabilities(CA - INV) / CL(CA - INV) / CL 00 result:1result:1XX:1 Receiveables turnoverCredit sales rev / Avg receivables(Credit sales rev/ ((Year 1 Acc rec + Year 2 Acc rec)/2)/100) *365(Credit sales rev/Acc rec)/100*366 (can only calculate if credit sales specified or provided)00 result daysresult daysresult days Average collection periodAverage receiveables x 365 / Net credit sales rev(Acc rec *365) / Rev(Acc rec *365) / Rev (can only calculate if credit sales specified or provided)00 xx daysxx daysresult days Gearing Ratios Gearing Ratios - COMPANY ASX CODE YYYYYYYYAverage for IndustryIndustry average to be provided by facilitator Debt to EquityTotal debt / Total equity or Total liabilities / Total equityDebt / EquityDebt / Equity or Actual debt / Total equity00 - 0- 0result% Debt ratioTotal debt / Total assetsDebt / Total AssetsDebt / Total Assets 00 0%0%result% Equity RatioTotal equity / Total assetsOE / AOE / A 00 0%0%result% Cash debt coverageAvg total liabilities / $$ from op activities((Year 1 Total L + Year 2 Total L)/2) / $ operating activitiesYear 2 Total L / $ operating activities 00 0%0%result% Interest coverage ratioEBIT / Interest expenseEBIT / Interest ExpEBIT / Interest Exp 00 xx timesxx timesresult times