Premium Essay

Financial Analysis for Bradken Ltd

In: Business and Management

Submitted By cchiu
Words 3677
Pages 15

Bradken Limited (BKN) manufactures and supplies consumable and capital products for the mining, construction, rail transit, energy and general industrial markets on a global basis. This report aims to provide a general analysis of BKN’s current and past financial performance through the use of ratio analysis, including DuPont analysis, on its liquidity, solvency, operational activity, profitability, and cash flows. Specific attention will be focused on the analysis of BKN’s fixed assets, leases and pension and its impact on the performance. The report will conclude by identifying current expectations on future performance based upon on the aforementioned analysis of its current and past performance.

All reported figures in the following analysis are stated in $’000.

Liquidity Analysis

BKN’s liquidity position improved overall from 2010 to 2011 and then subsequently weakened in 2012. There is a favourable change in Current, Quick, Cash, Current assets to total assets and Defensive interval ratios are 42.32%, 77.70%, 112.84%, 24.32% and 99.52% respectively from 2010 to 2011. However, the liquidity position deteriorated in 2012, as evidenced by an unfavourable percentage change of 13.40%, 35.85%, 42.88%, 14.19% and 19.68% respectively for the above ratios.

The primary reason for improvement in liquidity in 2011 compared to 2010 is the incremental increase in Cash and cash equivalents ($88,911 or 139.87%), Receivable ($116,140 or 81.59%) in current assets and the reduction of borrowing ($9,023 or 37.51%) in current liabilities. These unfavourable changes in liquidity measures from 2011 to 2012 are mainly due to the 33.18% and 14.54% decrease in BKN’s cash & cash equivalents and receivables respectively. The fall in current receivable is largely a result of the decrease in other receivables of $46,540 (80.63%) that arose from unusual operating...

Similar Documents

Premium Essay

Pe Valuation

...Applied Finance Centre Assignment Cover Sheet Unit Code: Lecturer’s Name Assignment Title: Student’s Name: Student Number: Due Date: ECFS895 Unit Name: Private Equity Study Centre: AFC Stephane Chatonsky Private Equity Case Study Manuel Hernandez 43009492 4 September, 2012 th Date Submitted: 4 , September, 2012 th ACADEMIC HONESTY DECLARATION (this is very important please read carefully): By placing my name in this document I declare that:           This assessment is my own work, based on my personal study and/or research; I have acknowledged all material and sources used in the preparation of this assessment, including any material generated in the course of my employment; If this assessment was based on collaborative preparatory work, as approved by the teachers of the unit, I have not submitted substantially the same final version of any material as another student; Neither the assessment, nor substantial parts of it, have been previously submitted for assessment in this or any other institution; I have not copied in part, or in whole, or otherwise plagiarised the work of other students; I have read and I understand the criteria used for assessment; The assessment is within the word and page limits specified in the unit outline or case study; The use of any material in this assessment does not infringe the intellectual property / copyright of a third party; I understand that this assessment may undergo electronic detection for......

Words: 8632 - Pages: 35

Premium Essay


...October 2014 STRATEGIC REVIEW COMPLETED SUBJECT TO SUCCESSFUL DIVESTMENT with focus on core Bathrooms & Kitchens and Door & Access Systems businesses and divestment of non-core businesses – Dux Hot Water and Brivis Heating & Cooling of Dux and Brivis, capital return options to shareholders will be reviewed $578 million $18.6 million $72.3 million 5.5 cents DWELLING COMPLETIONS rise only 4% on a moving annual total basis year on year to March 2014 CONTENTS Five Year Financial Summary 1 GWA Heating & Cooling 14 Company Profile and Our Mission 2 Board of Directors 16 Chairman’s Review 4 Corporate Governance Statement 18 Managing Director’s Review of Operations 6 Directors’ Report 28 Health and Safety 10 Financial Report 43 GWA Bathrooms & Kitchens 12 Other Statutory Information 90 GWA Door & Access Systems 13 Shareholder Information 91 FIVE YEAR FINANCIAL SUMMARY 2009/10 $’000 2010/11 $’000 2011/12 $’000 2012/13 $’000 2013/14 $’000 Revenue from continuing operations 656,809 726,367 602,128 565,365 577,994 Earnings before interest, tax, depreciation, amortisation and significant items** 112,099 125,243 94,228 87,168 89,903 17.1 17.2 15.6 15.4 15.6 (%) Depreciation and amortisation (17,551) Earnings before interest,...

Words: 47920 - Pages: 192