Case study. Company Report: Z Energy Limited-ZEL. Finance Paper

Company Report: Z Energy Limited-ZEL
Student’s Name
Institutional Affiliation
Contents
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Company Report: Z Energy Limited-ZEL  PAGEREF _Toc21866219 \h
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Introduction  PAGEREF _Toc21866220 \h
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Discussion  PAGEREF _Toc21866221 \h
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Financial Performance  PAGEREF _Toc21866222 \h
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Value  PAGEREF _Toc21866223 \h
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Capital Markets and Market Commentary  PAGEREF _Toc21866224 \h
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Non-Financial Reporting  PAGEREF _Toc21866225 \h
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Conclusions & Recommendation  PAGEREF _Toc21866226 \h
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References  PAGEREF _Toc21866227 \h
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Appendices  PAGEREF _Toc21866228 \h
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Appendix A: Financial Performance Graph  PAGEREF _Toc21866229 \h
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Appendix B  PAGEREF _Toc21866230 \h
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Appendix C  PAGEREF _Toc21866231 \h
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Company Report: Z Energy Limited-ZEL
Introduction
Z Energy Limited (ZEL) is a company based in New Zealand that is engaged in the supply of fuel to both commercial and retail customers. ZEL was first listed on the NZ exchange offering Debt on September 6th, 2010, and subsequently listed Equity on NZ Exchange on 19th August 2013. ZEL currently operates branded (Z) shops in approximately 200 locations throughout New Zealand. The branded shops offer various products and services, such as food, gift cards, bathrooms, discount vouchers, and Z Espresso coffee. It supplies multiple types of fuel to motorists, including Z Diesel, Z Bio D Biodiesel, ZX Premium Unleaded, and Z91 Unleaded. ZEL also offers different fuels to businesses, such as Z Bio D biodiesel, Z Diesel Emission Cleaner, marine fuel, aviation fuel, and diesel.
ZEL also offers fuel to various companies in bulk, including farmers, construction companies, airlines, power generators, and trucking companies. Some of its subsidiaries include Z Energy LTI Trustee Limited, Z Energy ESPP Trustee Limited, and Harbour City Property Investments Limited. This report assesses Z Energy Limited Company for the purposes of making sound financial decisions.
Discussion
Financial Performance
The table below indicates the profit margin ratio for the years ending 31st March 2017, 2018, and 2019 respectively. As can be seen, ZEL has experienced a slight decline in profitability and operational efficiency in the last three years. For instance, a current margin of 5.65 percent (2019) compared to 10.57 percent as at 31st March 2017 indicates that the company has reduced its profits and efficiency by 4.92 percent over the last two years.
Nonetheless, the financial performance graph below indicates a steady rise in the company’s revenues, almost doubling from NZD 2.545 billion in 2016 to NZD 5.502 billion as at 31st March 2019.
31 Mar 201931 Mar 2018
31 Mar 2017Profit Margin5.65 %9.23 %10.57 %
 EMB...