AMD (Blackmore's accounting analysis）

BLACKMORES LIMITED ACCOUNTING ANALYSIS
Student’s Name
Course
Professor’s Name
University
City (State)
Date
Table of Content
TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc51245055 \h 32. Blackmores Limited Background PAGEREF _Toc51245056 \h 33. Accounting Disclosures PAGEREF _Toc51245057 \h 3a. Changes in Accounting Policies PAGEREF _Toc51245058 \h 3b. Reporting Segments PAGEREF _Toc51245059 \h 4c. Five Years Figures of Net Profits and Income Taxes PAGEREF _Toc51245060 \h 44. Accounting and Market Valuation PAGEREF _Toc51245061 \h 45. Additional Disclosures PAGEREF _Toc51245062 \h 5a. Key Management Personnel (KMP) PAGEREF _Toc51245063 \h 5b. Auditor and Its Payment PAGEREF _Toc51245064 \h 5c. Major Investors and Shareholdings PAGEREF _Toc51245065 \h 56. Analysis of Financial Statement of Blackmores Group PAGEREF _Toc51245066 \h 66.1. Trend Analysis for Previous Five Years PAGEREF _Toc51245067 \h 66.2. Ratio Analysis PAGEREF _Toc51245068 \h 7a. Profitability Ratios PAGEREF _Toc51245069 \h 7b. Asset Efficiency Ratios PAGEREF _Toc51245070 \h 8c. Liquidity Ratios PAGEREF _Toc51245071 \h 9d. Capital Structure Ratios PAGEREF _Toc51245072 \h 9e. Market Performance Ratios PAGEREF _Toc51245073 \h 106.3. Impact of COVID-19 Pandemic PAGEREF _Toc51245074 \h 117. Investment Recommendations PAGEREF _Toc51245075 \h 118. Conclusion PAGEREF _Toc51245076 \h 13Reference List PAGEREF _Toc51245077 \h 14Appendixes PAGEREF _Toc51245078 \h 15Appendix A: Consolidated Statement of Profit or Loss for 2019 and 2020 PAGEREF _Toc51245079 \h 15Appendix B: Consolidated Statement of Financial Position for 2019 and 2020 PAGEREF _Toc51245080 \h 15Appendix C: Consolidated Statement of Cash Flows PAGEREF _Toc51245081 \h 17Appendix D: Financial Ratios Conducted in Excel PAGEREF _Toc51245082 \h 18Appendix E: Trend in Share Prices of Last Three Years PAGEREF _Toc51245083 \h 18
Blackmores Limited Accounting Analysis
1. Introduction
Investors require new stock investment opportunities to achieve a higher rate of returns on financial capital. Diversification in the stock portfolio also helps to minimize the total risk. The human capital of the investor plays an important role in the determination of suitable stock investment. High-risk stock options may generate more returns, but investment objective usually vary, such as; an investor may require low-risk stock in their portfolio to generate a stable rate of returns. The report presents a complete financial analysis of the Blackmores Group and also present investment recommendations. Ratio and trend analyses are used to evaluate the financial statements to identify the significant insights, and then recommendations provide support to the investor to make a relevant investment decision.
2. Blackmores Limited Background
It is an Australia-based public listed company that provide natural health products for the people and animals (IBISWorld, 2020). Company has operations in countries like Australia, New Zealand, Malaysia, Singapore and South Korea. Group’s total revenue growth has decreased from 36.50% in 2015 to -3.48% in 2018 and then risen to 1.75% in 2019 (IBISWorld, 2020). In the current year, the financial performance has experienced different challenges because of ...