Question
You work as a financial analyst. Your team are completing analysis of a company called RPA- Business Tech, which trades on the ASX. The company
You work as a financial analyst. Your team are completing analysis of a company called "RPA- Business Tech", which trades on the ASX. The company manufactures technologically advanced temperature control systems for businesses. Its sales are primarily to overseas markets across parts of Asia (China, Singapore, Malaysia). One of your colleagues wants to make a recommendation to your clients to purchase the stock, while another believes it should not be purchased. Use the information below to make your own argument about the stock (either buy, or sell). The information includes the following: a recent ASX Announcement; some Financial Ratios; a graph from the RBA Statement on Monetary Policy.
ASX Announcement
July 20th - 2020.
"The Board and CEO of are publicly listed company RPA-Business Tech Limited, are hereby noting to investors the sale of a number of non-utilised long-term assets. The assets are two factory floor areas (commercial industrial real estate), and a number of redundant machines. The management and board agree that this will increase cash holdings to assist RPA during this period of COVID-19."
In your answer here should use the sources of information provided to make an argument about the company "RPA-Business Tech"? Explain what the ASX announcement suggests about the company - this is a sale of assets to increase cash? Then explain what the ratios tell us?
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