Bega Companys Background
The primary product of Bega Cheese is the processing of natural cheddar cheese that is later cut or packed for retailing markets such as shops and supermarkets. The company also produces milk powder and other bi-products of cheese e. g. whey. History Bega Company was established in 1899 as a butter factory. It 2011, it became a listed company on the ASX. From reports of 2017, market advantage has seen the company grow to an extent of acquiring high shares of Mondelez’s international groceries business in both New Zealand and Australia. Industry The milk and dairy industry has gradually grown in Australia. Some of the significant growth can be seen from the demand and the processing plants that the industry is now employing in order to process, package as well as store the produce and products.
It wasn’t till 1788 when the first dairy cows reached Australia. AU Annual Balance Sheet - Bega Cheese Ltd. - Wall Street Journal," n. d. The seasonal production is only practiced when the production is at the peak but the round production is practiced throughout the year. Financial Statement 1. 96 ROE=3. 96 Net Income=29 Shareholders’ Equity=3. 23 Therefore, (29/3. 99 ROE=8. 99 b) Return on total assets, ("Growth, Profitability, and Financial Ratios for Bega Cheese Ltd (BGA) from Morningstar. 02x1. 11 ROTA=2. 24 ROTA=Net Income/Average Total Assets Also ROTA=(Profit Margin X Total Assets Turnover) Total Asset Turnover=2. 10 Profit Margin=2. 40 Therefore, 2. 94 Average inventory=16. 26 Therefore, (88. 47 Inventory Turnover=5. 47 Inventory Turnover=COGS/average inventory So, COSG=89. 12 Average inventory=17. 33 Period=365 days (365/10. 33 Settlement Period=35. 33 The period for the sale is 365 days. Receivables Turnover=9.
98 Period=365 days (365/9. 29 Accounts Payable=47. 45 Period=365 days (365/47. 69 Accounts Payable=44. 17 Period=366 days (366/44. 29 d) Assets turnover, ("Growth, Profitability, and Financial Ratios for Bega Cheese Ltd (BGA) from Morningstar. d. ) Calculation done by diving current assets by the current liabilities 2014 2015 2016 Current Assets= 58. 61 Current Liabilities= 38. 52 Current Ratio=1. 52 Current Assets= 59. com," n. d. ) 2014 2015 2016 Noncurrent Liabilities=4. 03 Equity=0. 06)×100% Gearing Ratio=98. 53 showing that the company is risk of not being able to service its debts as well as loans. The gearing ratio is 98. 38, this shows that the ability of the company being able to service its loans and debts is increasing compared to the previous financial year The gearing ratio of is 98. 37, this is clear indication that the growth of the company has been consistent and that the company is gaining strength in ways that it can service its loans and debts.
Analysis and Interpretation of Financial Statements and Market Standing According to the financial statement, the company has been showing positive growth ratios that will enable it service its loans and debts in order to fully maximize the growth, ("Financial Review - Business, Finance and Investment News," n. This was brought by a number of factors and strategies employed by the company one of them being implementation of milk sustainability and growth program that was successfully executed, ("Swinburne University of Technology, Melbourne," 2017. The 2016 financial report show a significant revenue growth that was triggered by the demand of the dairy products. The financial performance of the company are improved due to the continued investments in capacity and capabilities of the company and its farmers.
This led to strong balance sheet, since the revenue growth is noted at 7. 5% translating to $1196 million. The company has been showing positive growth ratios that will enable it service its loans and debts in order to fully maximize the growth. Lastly, there were significant increase in prices of the company’s shares, which also reflected in the increase of milk prices in Australia due to demand. This brought about the venture of infant formula investment as well as nutritional capacity as a market advantage. References BGA. AU Annual Balance Sheet - Bega Cheese Ltd. com/ Growth, Profitability, and Financial Ratios for Bega Cheese Ltd (BGA) from Morningstar. com. (n. d. Retrieved from http://financials. d. Retrieved from https://www. begacheese. com.
From $10 to earn access
Only on Studyloop