Evaluation Of Half-Yearly Results Of Amcor Limited

Change in Strategy Analysis

Discuss about the Financial Statement In Formativeness Intellectual.

From the overall evaluation of the half yearly results the change in strategy analysis is not needed, as the organizations profitability relatively increased during the half yearly period.  The half yearly result needs to be evaluated on the basis of previous half yearly records that is provided by the organization. This would eventually help the investors to identify the adequate Rate of returns which could be provided from investment. Therefore, it could be stated that the current strategy analysis used for the evaluation needs to be maintained by the investor (Alin-Eliodor 2014).

The changes in competitive strategy should not be conducted by the investors, as competitive analysis used for deriving the financial viability of Amcor Ltd is needed to identify the investment viability. The rising profits that is obtained by the organisation during the half yearly result indicates that no changes in the competitive strategy is needed as of now.

Particulars	Value Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
Share price on 28 March 2018	14.10
Number of shares	1,736.00
Investment Amount	24,477.60
Dividends half yearly (31-12-17)	0.21
Dividend received	364.56
Yield	1.49%

The above table relatively represents the yield provided by investments during the half yearly report. the company adequately provided a half yearly dividend of 0.21 per share to its investors, which are depicted or overall rid of 1.49% (Au.finance.yahoo.com 2018). The identification of yield relatively allows the investors to detect return generation capacity of the Investments, which could help them improve their capital gains.

Particulars	Value
Share price on 28 March 2018	14.10
Number of shares	1,736.00
Investment Amount	24,477.60
Dividends yearly (31-06-17)	0.24
Dividend received	407.96
Yield	1.67%

After evaluating the yield during half yearly report and during early report it could be identified that the return on investments obtained by the organisation during the annual report is much more profitable. Therefore, with the comparison of two different yield it could be identified that with the higher dividend payments the yield of the investors relatively rises. Therefore, significant changes in Yield could be identified from the levels of 1.67% in annual report to 1.49 per cent in half yearly yield.

Particulars	Half-yearly Dec 2017	Half-yearly Dec 2016
Revenue	100.00%	100.00%
Gross profit	19.88%	20.81%
EBITDA	11.41%	10.48%
Net Income	7.42%	6.58%
Interest	2.26%	2.10%
Tax expense	1.74%	1.80%
Operating Management Decomposition	Half-yearly Dec 2017	Half-yearly Dec 2016
Gross Profit Margin	19.88%	20.81%
EBITDA Margin	11.41%	10.48%
NOPAT Margin	9.51%	8.52%

The book table relatively evaluate the overall operating management decomposition of Amcor Limited from 2016 half yearly report to 2017 half yearly report.  this relevant evaluation directly indicates that the overall gross profit margin of the organization has declined from 20.81% to 19.88%. this relatively indicates the high expenses on raw materials which is conducted by the organization during the fiscal year of 2017. on the contrary, the ABT margin of the organization has a relatively improved from the levels of 10.48% to 11.41%, which directly indicates the overall reduction in administrative cost incurred by the company. Furthermore, the NOPAT margin of the organization has also improved from 8.52% in 2016 to 9.51% in 2017 half yearly report, which directly indicates the low finance and administrative cost incurred during the financial year. This overall reduction in gross profit margin was due to the excessive again expenses incurred by the company for purchasing raw materials. On the other hand, the other expenses such as tax expense and administrative expense of the organization relatively improved during 2017. The improvement of EBIDTA was relatively higher which adequately accommodated the rising interest payments conducted by the company during the Fiscal year (Asx.com.au 2011).

Competitive Strategy Analysis

Particulars	Half-yearly Dec 2017	Half-yearly Dec 2016
Accounts Receivable turnover	3.27	3.18
Inventory turnover	2.61	2.71
Accounts payable turnover	1.52	1.37
Working capital turnover	(0.40)	(0.16)
Long term assets	0.21	0.20
PP&E	0.62	0.62
Investment Management Decomp	Half-yearly Dec 2017	Half-yearly Dec 2016
Days Account receivable	111	115
Days Account inventory	140	135
Days Account payable	241	266

The above calculation relatively decomposers the investment management activities that is conducted by Amcor Limited from 2016 to 2017. From the valuation it could be identified that accounts receivable of the company relatively increased during 2017, which indicated a positive attribute for the company. This increment in accounts receivable turnover directly influenced the number of days, which was used for obtaining payments. Furthermore, the inventory level and accounts payable level relatively deteriorated during the fiscal year, which can be identified from the Rising value of accounts payable turnover and declining value of inventory turnover. The number of days that was taken by inventory to clear out relatively increased from 135 days to 140 days, while the accounts payable these relatively reduced from 266 days 241 days in 2017. This directly affected the overall financial capability of the company and its working capital turnover ratio which deteriorated from the levels of -0.16 in 2016 to -0.40 in 2017. The long-term assets accumulation of the organization relatively improved while stability in property plant and equipment was seen from 2016 to 2017. This relatively indicated that the overall financial position of the company slightly deteriorated due to the decline in inventory and accounts payable condition. However, the conditions of the organization are a relatively adequate, where it could generate higher rate of returns from investment (Asx.com.au 2011).

Particulars	Half-yearly Dec 2017	Half-yearly Dec 2016
Liquidity ratio
Current Ratio	0.64	0.82
Quick ratio	0.37	0.49
Cash ratio	0.08	0.14
operating cash flow ratio	0.15	0.14
Debt and Coverage Ratio
Liabilities to equity	8.46	9.19
Debt to equity	4.98	5.17
Net debt to equity	4.54	4.54
Debt to capital	0.83	0.84
Net Debt to capital	0.82	0.82
Interest coverage (earnings based)	5.05	4.99
Interest coverage (cash flow based)	5.90	7.85

The above calculation a relatively represents the overall financial management decomposition of Amcor Limited, which comprises of liquidity, debt, and coverage ratio. From the valuation it could be identified that current ratio quick ratio and cash ratio of the organisation relatively deteriorated from 2016 to 2017. This irrelevant decline an overall financial capability of the company was due to the accumulation of high and current liabilities by the organisation. The company Accumulated high current liabilities during 2017, which directly impacted its capability to support their short term financial obligations (Wahlen, Baginski and Bradshaw 2014).

The overall debt and coverage ratio can be evaluated from the above table, where liabilities to equity, debt to equity, debt to capital and interest coverage cash flow based has a relatively declined from the levels of 2016 in 2017.  This relevant decline of essential financial ratios from 2016 to 2017 directly state the law financial capability of Amcor Limited to continue its operations. However, the interest coverage earning these ratios relatively improved, while net debt to equity ratio, and debt to Capital ratio remains stagnant for the two fiscal years. Hence from the decomposition of financial management it would be identified that the performance of the company has deteriorated from 2016 to 2017, while adequate measures needs to be implemented by the organization to improve its financial position (Asx.com.au 2011).

Particulars	Half-yearly Dec 2017	Half-yearly Dec 2016
Return on Equity	34.86%	32.97%
Dividend pay-out ratio	81.61%	86.73%
Sustainable growth rate	6.41%	4.37%

Yield from Investments

The above table directly evaluates the substantial growth rate that is obtained by Amcor Limited from 2016 to 2017. the growth rate is relatively derived from identifying the return on equity and dividend payout ratio of the organization. the dividend payout ratio was relatively calculated by dividing the dividend payments with the Net income available for shareholders of the organization. Furthermore, the return on equity of the organization was calculated by dividing the overall net income with the current value of the total equity shares of the organization. this relatively helped in deriving the overall substantial growth rate obtained by the company. the substantial growth rate relatively indicates the overall increment in value of dividend that will be provided by the company during the fiscal years. the growth rate has a relatively increased from 4.37% to 6.41%, which indicates a substantial increment in the dividend payment ratio. the organization has relatively improved in paying the shareholders their adequate share by providing adequate dividend (Pappa 2015). Therefore, from the evaluation of substantial growth the investment opportunity in Amcor Limited is relatively high, as the companies providing higher rate of dividends today investors. This increment in substantial growth rate was relatively obtained by the rising level of returns on equity, Obtained by the organization during 2017.

The evaluation of above cash flow statement relatively indicates that the overall position of Amcor Limited as a relatively declined from 2016 to 2017 half yearly report. The other operations of the organization relatively declined due to the low cash and cash equivalents at the end of the financial period for the company. The net cash flow from operating activities of the company relatively reduced from 214.9 million in 2016 to 178.1 million in 2017.  The reduction was conducted in trade and other peoples of the organization, which were relatively reduced the overall net operating activities of the organization. The cash flow from investing activities are relatively improved where the reduction in investments of the organization helped in reducing the cash outflow. inside the company started to dispose property plant and equipment in 2017. However, relevant reduction in net cash flow from financing activities was seen in 2017, where the company adequately repaid the borrowings. This irrelevant increment in cash outflows of Financing activities directly increased the net decrease in cash held by the organization in 2017 (Entwistle 2015). This relatively post the cash and cash equivalents at the end of the financial period to the level of 361.7 in 2017 as compared to 378.2 in 2016.

Particulars	2017	2016	Growth
sales	9101	9421.3	-3.40%
Earnings	51.6	21	145.71%
Shareholders’ equity	891.5	845.5	5.44%
Net Income	614.00	273.60	124.42%
Shareholders’ equity	891.5	845.5	5.44%
ROE	68.9%	32.4%	112.84%

Operating Management Decomposition

The book table relatively represents the overall growth and forecast for the company which is obtained by evaluating 2017 and 2016 financial year Annual reports. From the valuation it could be Identified that the sales growth rate of Amcor Limited as a relatively falling from 2016 to 2017 by -3.4%. this relatively indicates that the organizations revenues a relative are declining due to low demand from customers. However, the earnings report of the organization has a relatively improved by 1 45.7% in 2017, which is due to the high net income obtained during 2017. The overall increment in shareholders equity is seen at the levels of 5 44%, where the retained income of the company has increased its overall share value.Net income of the company has improved by the levels of 124.40%, which has improved operational capability of the company (Grimm and Blazovich  2016).

For the most seeing the overall improvement in the operational capability of Amcor Ltd, Relevant forecast needs to be conducted with the help of strategic analysis, Competitive analysis, accounting analysis and financial analysis. This relevant evaluation would eventually help in identifying the level of returns that could be generated by the organization to with investors.  The evaluation directly indicates that changes in competitive strategy analysis needs to be conducted, where different company can be evaluated with Amcor to identify the financial viability of the organization. Moreover, the financial analysis strategy would also help in understanding the current financial position of Amcor with other competitive companies, which could be used for investing.

Particulars	2017	2016	Growth
Cash flows from operating activities
Cash before changes in working capital and provisions	1285.4	1315	-2.25%
Total changes in working capital and provisions	72	88.5	-18.64%
Net cash flows from operating activities	1027.4	1099.4	-6.55%
Cash flows from investing activities
Net cash flows from investing activities	-632.6	-997	36.55%
Cash flows from financing activities
Net cash flows from financing activities	-337	-126.9	165.56%
Net increase/(decrease) in cash held	57.8	-24.5	335.92%
Cash and cash equivalents at the beginning	513.4	697.5	-26.39%
Effects of exchange rate	-13.5	-159.5	-91.54%
Cash and cash equivalents at the end	557.7	513.5	8.61%

The above table adequately indicates the overall cash flow statement of the organisation which has the relatively improved over the period of 1 fiscal year. The growth phase in net cash flow from operating as a relatively declined from the levels of 1099.4 in 2016 to 1027.4 in 2017 with the net declining rate of -6.5 5%. This relatively indicates that the overall net cash flow from operating activities reduced due to the non-accumulation of adequate cash from operations. In addition, the net cash flow from investing activities has relatively improved from the levels of – 997 to -632.6, which directly indicates that A positive attribute for the organisation. this relevant improvement was at the levels of 36.55%. Furthermore, the overall net cash flow from financing activities relatively increased by the levels of 165.56 % indicating a higher debt accumulated by the organisation. Moreover, the cash held by the organisation at the end of 2017 was at the levels of 57.8, where relevant increment of 335.92% in net cash increase was seen. the secretary indicated a positive attribute for the organisation, which increased cash and cash equivalents at the end of the period by 8.61% (Asx.com.au 2011).

Investment Management Decomp

The above figure relatively indicates the overall impact of half yearly report on the share price of Amcor Limited within the 7 days of trading. In addition, the values of Amcor limited has a relatively decline after the half yearly report which indicates that the investors were not happy with the current financial position of the company which was portrayed in the annual report. This relevant decline in the annual report was due to the low cash availability of the company to continue its operations in 2017. The declining Liquidity position of the company was also a major factor for the reduction in share price of the company during the 7 days of trading. The company’s overall financial performance during 2017 half yearly report was a relatively low which negatively affected the sentiments of investors and masses selling was conducted in the share market (Au.finance.yahoo.com 2018).

From December 2017 the overall Change in substantial holdings and directors interest notice was published by Amcor Limited, which negatively affected the share price of the organisation. this can be seen in the above figure out where the continuous decline of Amcor’s Shares from December to the date of announcement for annual report can be seen. from the evaluation it could also be indicated that after the announcement of annual report for sudden spike in the share price of the organisation was seen which was again nullified by the continuous downtrend of the organisation. the relevant announcements such as Change in substantial Holdings was the major impact where after which the share price of the organisation started to decline exponentially. This relatively indicated that investors were trying to sell the shares of Amcor Limited during the fiscal year (Au.finance.yahoo.com 2018).

The fluctuations in price of Amcor Limited can be seen from the above figure, where different kinds of news have affected the overall share price of the organisation. The other news such as a different updates and dividend distribution that he will be conducted by the organisation was at effectively helpful in improving its share price. However, the ineffective results of AMVIG Holdings Limited relatively declined the share price of the organisation again from March 23rd. This announcement relatively reduced the share price of the organisation while hampering its ability to improve its return generation capacity. They were different announcements conducted by the directors regarding the interest notice for improving the relevant operations of the company to generate higher rate of returns from investment. Nevertheless, this news was not adequate to support the overall declining share price of Amcor (Au.finance.yahoo.com 2018).

Financial Management Decomposition

After reviewing the overall report of strategy analysis competitive analysis and accounting analysis my knowledge regarding the operation has a relatively changed. Previously, I would not utilize the strategic analysis competitive analysis and accounting analysis to identify the financial growth and prospects of an organisation for investing purposes. On the other hand, I would not utilize the measure to improve and identify any kind of investment opportunities that is presented from the evaluation. after receiving the feedback and updating the strategies under the required assignment I was able to identify the major factors that needs to be evaluated to identify the impact of annual report on share price of the organisation. The fundamental concept of detecting the investment opportunity can be identified with the help of strategic analysis, compute, and accounting analysis.

After conducting the first assignment relevant responses was provided where after receiving the feedback and updating the strategy I was able to improve the investment scope, which was conducted to detect the financial performance of the organisation. the tree analysis that was conducted by me in the assessment was a relatively helpful, as it evaluated all the relevant aspects of an organisation and the progress it could generate in the long run. the evaluation of the financial analysis relatively helps in identifying the financial position of an organisation over the period of time. Moreover, with the competitive analysis the overall condition of the organisation as compared to its competitors can be evaluated this helped in identifying the investment opportunity that are presented in the stock market. The analysis conducted on strategy was also helpful in identifying the measures taken by the management to improve company’s profitability. this revaluation literally indicated the measures that was taken by the company to improve its growth and obtain higher rate of return from investment.

After completing the assessment, the purpose of the rituals has a relatively altered in my mind, as the overall ratios was conducted to identify the financial health of the organisation and was not used as a decomposition method. the overall different decomposition method that was used in the assessment to identify the financial health of Amcor Limited relatively helped me to understand the significance of ratios and how it good detect the financial capability of an organisation. assessment a relatively help me to understand the financial ratios and the evaluation of financial statement which needs to be conducted by investors to understand the current financial position of an organisation. Good knowledge regarding the use of decomposition has a relatively improved where different combination of the ratios was conducted to identify the financial progress of an organisation. the substantial growth phase relatively helps me to understand the overall increment in growth of the organisation which was obtained in 2017. the use of dividend payout ratio and return on equity would eventually help in detecting the sustainable growth rate of an organisation which is derived in the assessment and could allow the investor to understand the financial progress that is obtained by the company.

Previously I was relatively focused on ratios as a measure of calculating only the financial performance of the organisation and did not understand the interrelationship between the two ratios that could be used by the investors to detect financial stability and viability of the company. Now after the completion of the assessment I was able to identify the different levels of interrelationships that could be used by the investors to detect the financial performance and abbreviations found in the financial statement of an organisation. the operating management decomposition method relatively combined different level of ratios which help in identifying the current operation management condition of Amcor. this relatively help in making adequate decisions regarding the investments conducted in the company.  the knowledge was relatively altered regarding the ratios and its implications that could be used in different ways to improve the level of forecast from the evaluation of the financial statement of an organisation.

Reference and Bibliography:

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Wahlen, J., Baginski, S. and Bradshaw, M., 2014. Financial reporting, financial statement analysis and valuation. Nelson Education.