Old MathJax webview

Austal Limited (ASX code: ASB) - Synlait Milk Limited (ASX code: SM1) For each company, the displayed page summarises general information about the company including the sector and industry in which it operates, total market capitalisation of the firm, latest closing share price, etc. 2. Each firm operates in a different Industry Group. ? Austal Limited operates in the Capital Goods industry group. ? Synlait Milk Limited operates in the Food, Beverage, and Tobacco industry group. 3. On the left-hand side, click on ?Financial Data?. The displayed page shows annual and interim information for your assigned companies (in the view bar, make sure you choose annual and not interim data). On the page?s control bar at the top, you will see the first three icons which displays the company?s summarised annual financial statements (income statement (profit & loss statement), balance sheet, etc). 4. The figures shown on the Financial Data page are rounded figures and are not to be used in the calculation of ratios. To access the raw figures for your ratio calculations, select the relevant time period (i.e., 2019 to 2020) from the ?year range? drop down bars, and click on ?go?. Once the figures appear, click on the ?download spreadsheet? button. This will download an Excel file that contains all the relevant financial statements i.e., Profit & Loss Statement, Balance Sheet, etc. for both 2019 and 2020. 5. In the downloaded Excel file, you will see a sheet titled ?Revenue/Expense? in which you can locate the Cost of goods sold (COGS) for each company for the different years. This is the figure you will employ as the Cost of Goods Sold for your ratio calculations. Note: For both companies in 2019, you are required to add up various COGS items to ascertain the total COGS for the year under investigation. However, you only need to add up various COGS items to ascertain the total COGS for one of the companies in 2020. Remember to disregard the minus sign in front of the total COGS figure and remove the minus sign prior to using the total COGS figure in your calculations. The minus sign denotes that COGS is an expense item. 6. For more detailed information about how to obtain the data required for your group assignment, please watch the ?How to Obtain Data for the Group Assignment? video. The video is located in the Assessment Zone under the Assessment 2: Numerical Problem Solving link. Ideally, your group members should watch this video prior to commencing the assignment. 2 WHAT IS REQUIRED You are part of a team of financial analysts who have been hired by Eden Waldorf, Chief Loans Officer (CLO) at Bastion Banking Corporation. The bank has received loan applications from the abovementioned companies. Accordingly, the CLO of the bank requires your team to analyse the financial position and performance of the above assigned companies for the two stated financial years (2019 and 2020), to determine whether the companies are eligible for a loan from the bank. Your task involves answering the following 5 questions in your own words (i.e., do not simply ?cut and paste? information from the Annual Report or any other source). You must apply critical thinking concepts when explaining and justifying your choices. NB: Ensure that you refer to the marking criteria prior to commencing the assignment. BASED ON THE INFORMATION AVAILABLE ON THE DatAnalysis Premium DATABASE FOR BOTH ASSIGNED COMPANIES, ANSWER ALL OF THE FOLLOWING QUESTIONS (1 TO 5 INCLUSIVE). QUESTION 1: Calculate the Cash Conversion Cycle (CCC) for each of the two companies in 2019 and 2020. Using your answer, analyse the efficiency of each of the two companies in managing their working capital in 2020 as compared to 2019. Note: ensure that you analyse in this question, not just describe the CCC values. (3 marks) QUESTION 2: Analyse the sources of finance for each of the two companies in 2020 as compared to 2019. Use two capital structure ratios to support your answer and provide an explanation regarding the changes in the composition of the sources of finance for each enterprise. Note: ensure that you analyse in this question, not just describe the ratio values. (2 marks) QUESTION 3: Analyse the ability of management to manage their fixed assets and total assets for each of the two companies in 2020 as compared to 2019. Use two Asset Management efficiency ratios to support your answer and explain any change in each companies? ability to use their assets to generate sales. Note: ensure that you analyse in this question, not just describe the ratio values. JUST ANSWER QUESTION 3 IF APPLICAPLE

Balance sheet of both companies between 2019 2020

FIRST ONE SM1 2019-2020

Second one ASB AUSTAL LIMITED

Austal

SM1

Cash statements 2019 2020

Styles 07/20 5.47 58.59 I 11.53 250.31 20.93 0.00 12.20 359.03 07/19 Current Assets Cash 15.32 Receivables 59.27 Prepaid Expenses 9.14 Inventories 157.77 Investments 2.26 NCA Held Sale 0.00 Other 26.68 Total Current 270.43 Assets Non-Current Assets Receivables 0.00 Inventories 0.00 Investments 0.15 PP&E 808.88 Intangibles(ExGW) 15.72 Goodwill 3.49 Future Tax Benefit 0.00 Other 0.00 Total NCA 828.24 Total Assets 1,098.67 Current 0.00 0.00 13.22 913.96 39.49 60.90 0.00 0.00 1,027.57 1,386.61 Styles 60.90 0.00 0.00 1,027.57 1,386.61 Goodwill 3.49 Future Tax Benefit 0.00 Other 0.00 Total NCA 828.24 Total Assets 1,098.67 Current Liabilities Account Payable 206.74 Short-Term Debt 95.35 Provisions 54.72 NOL Held Sale 0.00 Other 0.00 221.86 99.66 35.97 0.00 0.00 356.81 357.50 Total Curr. Liabilities Non-Current Liabilities Account Payable Long-Term Debt Provisions Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity SE Held Sale Outside Equity Total Equity 0.00 238.76 31.90 0.00 270.67 627.47 0.00 410.33 55.24 0.00 465.57 823.06 256.55 -23.44 238.08 0.00 0.00 0.00 249.53 12.97 301.04 0.00 0.00 0.00 471.20 563.54 06/19 06/20 Current Assets Cash Receivables Prepaid Expenses Inventories Investments NCA Held Sale Other Total Current Assets 275.66 225.27 9.48 167.04 1.93 0.00 1.70 681.09 396.67 144.22 11.44 143.80 1.22 0.00 0.00 697.34 Non-Current Assets Receivables Inventories Investments PP&E Intangibles(ExGW) Goodwill Future Tax Benefit Other Total NCA 0.55 0.00 1.99 588.38 7.95 12.80 8.40 26.15 646.21 0.25 0.00 2.92 619.94 9.29 12.90 4.76 20.72 670.76 646.21 670.76 1,327.30 1,368.11 202.31 51.21 94.30 0.00 126.85 474.66 156.91 11.35 83.74 0.00 97.73 349.73 Total Assets Current Liabilities Account Payable Short-Term Debt Provisions NCL Held Sale Other Total Curr. Liabilities Non-Current Liabilities Account Payable Long-Term Debt Provisions Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity 0.00 122.54 43.10 56.21 221.86 0.00 163.91 51.68 54.05 269.63 619.36 696.52 130.57 189.52 310.69 0.00 0.00 135.34 235.12 378.28 0.00 0.00 43.10 56.21 221.86 51.68 54.05 269.63 696.52 619.36 Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity SE Held Sale Outside Equity Total Equity 130.57 189.52 310.69 0.00 0.00 0.00 135.34 235.12 378.28 0.00 0.00 0.00 630.78 748.74 ($millions) 06/19 06/20 AUSTAL ASB Current Assets Cash Receivables Prepaid Expenses Inventories Investments NCA Held Sale Other Total Current Assets 275.66 225.27 9.48 167.04 1.93 0.00 1.70 681.09 396.67 144.22 11.44 143.80 1.22 0.00 0.00 697.34 Non-Current Assets Receivables Inventories Investments PP&E Intangibles(EXGW) Goodwill Future Tax Benefit Other Total NCA Total Assets Current Liabilities Account Payable Short-Term Debt Provisions 0.55 0.00 1.99 588.38 7.95 12.80 8.40 26.15 646.21 0.25 0.00 2.92 619.94 9.29 12.90 4.76 20.72 670.76 1,327.30 1,368.11 202.31 51.21 94.30 156.91 11.35 83.74 Paragraph 0.00 122.54 43.10 56.21 221.86 0.00 163.91 51.68 54.05 269.63 Non-Current Liabilities Account Payable Long-Term Debt Provisions Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity SE Held Sale 696.52 619.36 130.57 189.52 310.69 0.00 0.00 0.00 135.34 235.12 378.28 0.00 0.00 0.00 Outside Equity Total Equity 1 630.78 748.74 ($millions) 06/19 06/20 1,851.02 2,086.00 17.64 15.17 1,868.66 2,101.17 -1,732.46 -1,925.03 136.20 176.14 -39.90 -42.91 -2.30 -2.83 -42.21 -45.74 94.00 130.40 1.05 1.38 -8.28 -8.27 Operating Revenue Other Revenue Total Revenue Excluding Interest Operating Expenses EBITDA Depreciation Amortisation Depreciation and Amortisation EBIT Interest Revenue Interest Expense Net Interest Expense PreTax Profit Tax Expense Net Profit after Tax Before Abnormals Abnormals Abnormals Tax Net Abnormals Reported NPAT After Abnormals Outside Equity Interests Shares Outstanding at Period End Weighted Average Number Of Shares EPS Adjusted (cents/share) EPS After Abnormals (cents/share) -7.23 -6.88 86.76 -24.18 62.58 -1.20 0.00 -1.20 61.38 0.00 352.68 349.60 17.64 17.30 123.51 -34.54 88.98 0.00 0.00 0.00 88.98 0.00 356.05 356.24 24.70 24.70 0.20 -7.23 -6.88 1111CT CSU LAPEC Net Interest Expense PreTax Profit Tax Expense Net Profit after Tax Before Abnormals Abnormals Abnormals Tax Net Abnormals Reported NPAT After Abnormals Outside Equity Interests Shares Outstanding at Period End Weighted Average Number Of Shares EPS Adjusted (cents/share) EPS After Abnormals (cents/share) 86.76 -24.18 62.58 -1.20 0.00 -1.20 61.38 0.00 352.68 349.60 17.64 17.30 123.51 -34.54 88.98 0.00 0.00 0.00 88.98 0.00 356.05 356.24 24.70 24.70 ($millions) 07/19 07/20 981.25 1,222.89 -827.63 -1,097.56 0.00 0.00 0.00 0.00 0.00 0.00 -25.52 -24.75 2.72 -2.52 130.82 98.07 Operating Cash Flow Receipts from customers Payments to Suppliers and Employees Dividends Received Interest Received Interest Paid Tax Paid Other Operating Cash Flow Net Operating Cash Flow Investing Cash Flow Payment for Purchase of PPE Proceeds from Sale of PPE Investments Purchased Proceeds from Sale of Investments Payments for Purchase of Subsidiaries Proceeds from Sale of Subsidiaries Loans Granted Loans Repaid Other Investing Cash Flow Net Investing Cash Flow Financing Cash Flow Proceeds from Issues Proceeds from Borrowings Repayment of Borrowings Dividends Paid Other Financing Cash Flow Net Financing Cash Flow Net Increase in Cash Cash at Beginning of Period Exchange Rate Adj Cash at End of Period -306.67 -0.14 -17.23 0.00 0.00 0.00 0.00 0.00 1.18 -322.86 -141.68 0.22 0.00 0.00 -67.76 0.00 0.00 0.00 0.12 -209.09 0.00 0.00 145.76 0.00 30.85 176.61 -15.43 30.75 0.00 15.32 0.00 167.26 -40.16 0.00 -25.45 101.64 -9.39 14.87 -0.02 5.47 V.UU 0.00 0.00 1.18 -322.86 U.UU 0.00 0.00 0.12 -209.09 TULCCUS II Jarc 01 JUUsluialis Loans Granted Loans Repaid Other Investing Cash Flow Net Investing Cash Flow Financing Cash Flow Proceeds from Issues Proceeds from Borrowings Repayment of Borrowings Dividends Paid Other Financing Cash Flow Net Financing Cash Flow Net Increase in Cash Cash at Beginning of Period Exchange Rate Adi Cash at End of Period 0.00 0.00 145.76 0.00 30.85 176.61 -15.43 30.75 0.00 15.32 0.00 167.26 -40.16 0.00 -25.45 101.64 -9.39 14.87 -0.02 5.47 Styles 07/20 5.47 58.59 I 11.53 250.31 20.93 0.00 12.20 359.03 07/19 Current Assets Cash 15.32 Receivables 59.27 Prepaid Expenses 9.14 Inventories 157.77 Investments 2.26 NCA Held Sale 0.00 Other 26.68 Total Current 270.43 Assets Non-Current Assets Receivables 0.00 Inventories 0.00 Investments 0.15 PP&E 808.88 Intangibles(ExGW) 15.72 Goodwill 3.49 Future Tax Benefit 0.00 Other 0.00 Total NCA 828.24 Total Assets 1,098.67 Current 0.00 0.00 13.22 913.96 39.49 60.90 0.00 0.00 1,027.57 1,386.61 Styles 60.90 0.00 0.00 1,027.57 1,386.61 Goodwill 3.49 Future Tax Benefit 0.00 Other 0.00 Total NCA 828.24 Total Assets 1,098.67 Current Liabilities Account Payable 206.74 Short-Term Debt 95.35 Provisions 54.72 NOL Held Sale 0.00 Other 0.00 221.86 99.66 35.97 0.00 0.00 356.81 357.50 Total Curr. Liabilities Non-Current Liabilities Account Payable Long-Term Debt Provisions Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity SE Held Sale Outside Equity Total Equity 0.00 238.76 31.90 0.00 270.67 627.47 0.00 410.33 55.24 0.00 465.57 823.06 256.55 -23.44 238.08 0.00 0.00 0.00 249.53 12.97 301.04 0.00 0.00 0.00 471.20 563.54 06/19 06/20 Current Assets Cash Receivables Prepaid Expenses Inventories Investments NCA Held Sale Other Total Current Assets 275.66 225.27 9.48 167.04 1.93 0.00 1.70 681.09 396.67 144.22 11.44 143.80 1.22 0.00 0.00 697.34 Non-Current Assets Receivables Inventories Investments PP&E Intangibles(ExGW) Goodwill Future Tax Benefit Other Total NCA 0.55 0.00 1.99 588.38 7.95 12.80 8.40 26.15 646.21 0.25 0.00 2.92 619.94 9.29 12.90 4.76 20.72 670.76 646.21 670.76 1,327.30 1,368.11 202.31 51.21 94.30 0.00 126.85 474.66 156.91 11.35 83.74 0.00 97.73 349.73 Total Assets Current Liabilities Account Payable Short-Term Debt Provisions NCL Held Sale Other Total Curr. Liabilities Non-Current Liabilities Account Payable Long-Term Debt Provisions Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity 0.00 122.54 43.10 56.21 221.86 0.00 163.91 51.68 54.05 269.63 619.36 696.52 130.57 189.52 310.69 0.00 0.00 135.34 235.12 378.28 0.00 0.00 43.10 56.21 221.86 51.68 54.05 269.63 696.52 619.36 Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity SE Held Sale Outside Equity Total Equity 130.57 189.52 310.69 0.00 0.00 0.00 135.34 235.12 378.28 0.00 0.00 0.00 630.78 748.74 ($millions) 06/19 06/20 AUSTAL ASB Current Assets Cash Receivables Prepaid Expenses Inventories Investments NCA Held Sale Other Total Current Assets 275.66 225.27 9.48 167.04 1.93 0.00 1.70 681.09 396.67 144.22 11.44 143.80 1.22 0.00 0.00 697.34 Non-Current Assets Receivables Inventories Investments PP&E Intangibles(EXGW) Goodwill Future Tax Benefit Other Total NCA Total Assets Current Liabilities Account Payable Short-Term Debt Provisions 0.55 0.00 1.99 588.38 7.95 12.80 8.40 26.15 646.21 0.25 0.00 2.92 619.94 9.29 12.90 4.76 20.72 670.76 1,327.30 1,368.11 202.31 51.21 94.30 156.91 11.35 83.74 Paragraph 0.00 122.54 43.10 56.21 221.86 0.00 163.91 51.68 54.05 269.63 Non-Current Liabilities Account Payable Long-Term Debt Provisions Other Total NCL Total Liabilities Shareholders Equity Share Capital Reserves Retained Earnings Other Equity Convertible Equity SE Held Sale 696.52 619.36 130.57 189.52 310.69 0.00 0.00 0.00 135.34 235.12 378.28 0.00 0.00 0.00 Outside Equity Total Equity 1 630.78 748.74 ($millions) 06/19 06/20 1,851.02 2,086.00 17.64 15.17 1,868.66 2,101.17 -1,732.46 -1,925.03 136.20 176.14 -39.90 -42.91 -2.30 -2.83 -42.21 -45.74 94.00 130.40 1.05 1.38 -8.28 -8.27 Operating Revenue Other Revenue Total Revenue Excluding Interest Operating Expenses EBITDA Depreciation Amortisation Depreciation and Amortisation EBIT Interest Revenue Interest Expense Net Interest Expense PreTax Profit Tax Expense Net Profit after Tax Before Abnormals Abnormals Abnormals Tax Net Abnormals Reported NPAT After Abnormals Outside Equity Interests Shares Outstanding at Period End Weighted Average Number Of Shares EPS Adjusted (cents/share) EPS After Abnormals (cents/share) -7.23 -6.88 86.76 -24.18 62.58 -1.20 0.00 -1.20 61.38 0.00 352.68 349.60 17.64 17.30 123.51 -34.54 88.98 0.00 0.00 0.00 88.98 0.00 356.05 356.24 24.70 24.70 0.20 -7.23 -6.88 1111CT CSU LAPEC Net Interest Expense PreTax Profit Tax Expense Net Profit after Tax Before Abnormals Abnormals Abnormals Tax Net Abnormals Reported NPAT After Abnormals Outside Equity Interests Shares Outstanding at Period End Weighted Average Number Of Shares EPS Adjusted (cents/share) EPS After Abnormals (cents/share) 86.76 -24.18 62.58 -1.20 0.00 -1.20 61.38 0.00 352.68 349.60 17.64 17.30 123.51 -34.54 88.98 0.00 0.00 0.00 88.98 0.00 356.05 356.24 24.70 24.70 ($millions) 07/19 07/20 981.25 1,222.89 -827.63 -1,097.56 0.00 0.00 0.00 0.00 0.00 0.00 -25.52 -24.75 2.72 -2.52 130.82 98.07 Operating Cash Flow Receipts from customers Payments to Suppliers and Employees Dividends Received Interest Received Interest Paid Tax Paid Other Operating Cash Flow Net Operating Cash Flow Investing Cash Flow Payment for Purchase of PPE Proceeds from Sale of PPE Investments Purchased Proceeds from Sale of Investments Payments for Purchase of Subsidiaries Proceeds from Sale of Subsidiaries Loans Granted Loans Repaid Other Investing Cash Flow Net Investing Cash Flow Financing Cash Flow Proceeds from Issues Proceeds from Borrowings Repayment of Borrowings Dividends Paid Other Financing Cash Flow Net Financing Cash Flow Net Increase in Cash Cash at Beginning of Period Exchange Rate Adj Cash at End of Period -306.67 -0.14 -17.23 0.00 0.00 0.00 0.00 0.00 1.18 -322.86 -141.68 0.22 0.00 0.00 -67.76 0.00 0.00 0.00 0.12 -209.09 0.00 0.00 145.76 0.00 30.85 176.61 -15.43 30.75 0.00 15.32 0.00 167.26 -40.16 0.00 -25.45 101.64 -9.39 14.87 -0.02 5.47 V.UU 0.00 0.00 1.18 -322.86 U.UU 0.00 0.00 0.12 -209.09 TULCCUS II Jarc 01 JUUsluialis Loans Granted Loans Repaid Other Investing Cash Flow Net Investing Cash Flow Financing Cash Flow Proceeds from Issues Proceeds from Borrowings Repayment of Borrowings Dividends Paid Other Financing Cash Flow Net Financing Cash Flow Net Increase in Cash Cash at Beginning of Period Exchange Rate Adi Cash at End of Period 0.00 0.00 145.76 0.00 30.85 176.61 -15.43 30.75 0.00 15.32 0.00 167.26 -40.16 0.00 -25.45 101.64 -9.39 14.87 -0.02 5.47