UNIT 101 – FINANCIAL MANAGEMENT

LECTURER NAME

TOPIC NAME

Financial Analysis

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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 the end of the year. Comparing the relationships of these ratios reveals that Orica decreased their liquidity, but suffered lower profitability with heavy influences from
Minova’s impairment of goodwill. With high asset utilisation and stable efficiency,
Orica should focus on improving their maintenance and reliability by addressing the
Kooragang plant shutdown. Furthermore, Orica is financing more with debt than equity which introduces some risk to the company given their higher expenses for
2012. Finally, the investment ratios indicate that Orica could be poised for high growth with a stable return, but should first focus on maximising their plants and equipment. Sample Assignment: Part of the content removed

II

TABLE OF CONTENTS
Executive Summary ............................................................................................................................. II
Table of Contents ............................................................................................................................... III
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