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Recommendations the Bega Cheese Limited of Australia: (use bullet points and no more than 100 words on each question which based on all given ratios)
Recommendations the Bega Cheese Limited of Australia: (use bullet points and no more than 100 words on each question which based on all given ratios)
1. Suggest what the company should be doing to help it succeeds
Which ratios require improvement?What should XXX Company be doing to improve these?
2. External impacts that need to be taken into consideration the effect of government on the business
discuss any political pressures and external/other factors that impact Bega Cheese
3. Would you invest in this company?
3.1. Profitability ratios: See appendix for calculations Return on equity Return on assets (before interest and tax) Return on assets (after tax) Gross profit margin Operating profit margin Profit margin Earnings per share Dividends per share Dividend payout ratio Share price Price earnings ratio 2021 6.96 % 5.51 % 3.69 % 22.44 % 5.19 % 3.48 % $ 0.273 $0.1 36.63 % $5.89 58.9 times 2020 2.62 % 2.89 % 1.46% 19.35% 2.83 % 1.43% $0.099 $ 0.1 101.02 % $ 4.38 43.8 times Industry average 5.57 % 2.65 % 2.97% 124.22 % 29.64 times
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