Word Limit:2,000words in total(excludingexecutive summary,tables, appendix and references)The title page, reference...

1 answer below »















W


ord Limit


:




2,0


00




words in total




(excluding




executive summary,




tables, appendix and references)










The title page, reference list,




executive summary,




tables, and the appendix are not included in the word count. Word count




guides




for each section are presented below.










REQUIRED






Your client has been approached to be a non-executive director on the board




of BHP Group Ltd.




[ASX code:




BHP


]




and has asked for your assistance to help investigate the organisation. You will advise her on the organisation’s background and history including some key financial performance indicators. You will base this information on your analysis and interpretation of the financial statements contained within the last t


wo




available end of year Annual Reports (check their website




-




https://www.bhp.com/investors/annual-reporting


)




for 202


1




and 202


2




financial years, and any other information that you deem important in her decision-making, such as social and environmental considerations and/or potential governance/ethical issues.










Provide a formal written report, making sure you address the following CHECKLIST POINTS:
















  1. Provide a brief overview of the organisation and its operations (approximately 200 words). Use information from sources outside of the Annual Report. Ensure all sources are properly










    referenced.




    NOTE: A separate Executive summary at the start will require only the key points










    about the organisation and the key findings from your analysis.
















  2. Calculate and present the results of your financial statement ratio analysis for the










    organisation using the ratios in Table 1:






    o




    Useyourowntabletopresentasummaryoftheresultsofyouranalysis(for


    2


    years).




    o




    Use 2 decimal places for results and present in an appropriate form i.e. 1:2; %, days




    o




    Do not show the detail of your calculations in your table (refer to Point 3).






    o




    Use the ratio formulas provided in chapters 7, 8 & 9 of your text (Cunningham et al










    2021) for your calculations – please




    ONLY




    use Cunningham et al formulas.
















  3. Create an appendix to show your ratio calculations. You MUST include details such as the written formulas and data used to complete the financial statement ratio analysis. This may










    be prepared in an Excel worksheet but needs to be cut and pasted into a WORD document










    as a table NOT a picture.




    No word count limits on the appendix.
















  4. Explain how each of the ratios helps your client in their decision-making. In other words,










    explain




    the ratios as you present your answers and




    interpret




    what the results mean. Read










    widely and reference more than one source of information (approximately




    3


    5


    0 words).
















  5. Analyse




    and




    critically




    evaluate the organisation using your financial statement ratios and










    other information researched to support your arguments (approximately




    25


    0 words).
















  6. Identify, explain, and evaluate the organisation’s social and environmental impact, as well as










    potential ethical and/or corporate governance issues.




    Hint: You will need to read more widely, beyond the annual reports and financial statements




    (approximately




    2


    00 words).



















page1image26400


page1image26560


page1image26720











1




























7. Use correct in-text referencing and provide a Reference List in accordance with the Harvard Referencing System. Use the Harvard Referencing Guide from the University of Tasmania’s Library website (


https://utas.libguides.com/ld.php?content_id=21757934


).











Answered 2 days AfterMay 10, 2023University of Tasmania

Answer To: Word Limit:2,000words in total(excludingexecutive...

Preeti answered on May 12 2023
36 Votes
Financial statement ANALYSIS assignment
Semester x 202x
Insert here any additional information needed for your report eg. (A short title instead of the long version noted above – then transfer the short title to the header on following pages)
BHP Group Ltd
on 11-05-2023
Completed by: your name and student ID
References –
Annual Report 2021. (2021). BHP Group Limited. Retrieved from https://www.bhp.com/media-and-insights/reports-and-presentations/2021/09/bhp-annual-report-2021/

Annual Report 2022. (2022). BHP Group Limited. Retrieved from https://www.bhp.com/media-and-insights/reports-and-presentations/2022/09/bhp-annual-report-2022/
BHP. (n.d.). Our Company. Retrieved from https://www.bhp.com/about-us/our-company/
BHP. (n.d.). Sustainability. Retrieved from https://www.bhp.com/sustainability/
BHP. (n.d.). Our Governance. Retrieved from https://www.bhp.com/about-us/our-governance/
Cunningham, B., Nikolai, L., Bazley, J., Kavanagh, M., & Slaughter, G. (2021). Accounting: Information for Business Decisions (4th ed.). Cengage Learning Australia.
University of Tasmania Library. (n.d.). Harvard referencing guide. Retrieved May 11, 2023, from https://utas.libguides.com/ld.php?content_id=28120405
BHP. (2021). Annual Report 2021. Retrieved from https://www.bhp.com/-/media/bhp/documents/investors/annual-reports/2021/210805_bhp_ar21_final.pdf
BHP. (2022). Annual Report 2022. Retrieved from https://www.bhp.com/-/media/bhp/documents/investors/annual-reports/2022/bhp_ar22_final.pdf
Australian Securities Exchange. (n.d.). BHP Group Limited (BHP). Retrieved from https://www2.asx.com.au/markets/company/BHP
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Concepts and cases: Competitiveness and globalization (12th ed.). Cengage Learning.
Jackson, G., & Apostolakou, A. (2010). Corporate social responsibility in Western Europe: An institutional mirror or substitute? Journal of Business Ethics, 94(3), 371-394.
Sanda, A. U., Mikailu, A. S., & Garba, T. (2014). Corporate governance and firm performance in Africa: A dynamic panel data analysis. International Journal of Business and Management, 9(3), 1-13.
Executive summary
BHP Group Ltd. is a diversified mining company that operates globally with a focus on iron ore, copper, coal, petroleum, and potash. The company operates through four major business segments: Petroleum, Copper, Iron Ore, and Coal. The analysis of the financial statements of the company for the years 2021 and 2022 shows that the company has been performing well. The liquidity, solvency, profitability, and efficiency ratios of the company are all within acceptable ranges, indicating that the company is financially stable. However, the company is facing some social and environmental challenges, such as climate change and human rights violations.
Overview of the Organization:
BHP Group Ltd is an Australian multinational mining, metals, and petroleum company that was formed in 2001 after the merger of BHP Limited and Billiton PLC. The company operates in more than 90 locations worldwide, including Australia, the Americas, Europe, and Asia. BHP Group is engaged in the exploration, development, production, and marketing of natural resources such as iron ore, copper, coal, petroleum, and potash. The company has a diverse portfolio of assets and a strong global presence, making it one of the world's largest mining companies. In recent years, BHP Group has focused on reducing its environmental impact and improving its sustainability practices, including reducing greenhouse gas emissions, increasing the use of renewable energy, and investing in technology to reduce water usage. The company has also prioritized safety and health for its employees and contractors. In 2021, BHP Group reported revenue of $44.6 billion and a net profit of $11.9 billion.
Financial Statement Ratio Analysis:
The following table presents the financial statement ratios of BHP Group Ltd. for the years 2021 and 2022, based on the formulas in Cunningham et al. (2021).
    Ratio
    2022
    2021
    Interpretation
    Liquidity Ratios
     
     
    measure a company's ability to meet short-term obligations.
    Current Ratio
    1.85
    1.83
    company's ability to pay short-term obligations using current assets.
    Quick Ratio
    1.34
    1.32
    company's ability to pay short-term obligations using quick assets (cash, marketable securities, and accounts receivable).
    Solvency Ratios
     
     
    company's ability to meet long-term obligations and remain financially stable in the long run.
    Debt-to-Equity Ratio
    0.33
    0.32
    measures the percentage of a company's assets that are financed by debt.
    Debt-to-Assets Ratio
    0.19
    0.19
    measures the percentage of a company's assets that are financed by debt.
    Profitability Ratios
     
     
    company's ability to generate profits relative to its revenue, assets, or equity.
    Gross Profit...
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