Macquarie Group Limited Organisational Perfomance
Financing activities 5 1. Operating activities 5 1. Investing activities 6 1. Financial position analysis form the Balance sheet 6 SECTION TWO: RATIOS 7 2. Return on Assets 7 2. The group is among the leading financial groups in Australia with offices in over 27 countries worldwide (Tisdell, 2016). The company is listed in Australia and is regulated by the Australia Prudential Regulation Authority. The group is also subject to regulations across by different regulators across the world where the group has their offices. The main role played by Macquarie group is acting as an intermediary of investment for corporates, instituions, retail clients and governments across the world. The company has established and leading positions in the market as a specialist in some sectors of the economy such as resources and commodities, energy sector, real estate and infrastructure.
This shows that the profitability of the company is increasing every year which is good for the investors who have laced their capital in the organization. Cash flow analysis 1. Financing activities The cash flows from financing activities were as follows; the group had proceed from no controlling interests that amounted to $33Miliion, loan capital issued had no proceeds in the financial year 2017, payments on redemption of the loan capital amounting to $330m were also made. The group also participated in treasury shares which led to proceeds that amounted to $373m and dividends and distributions that were paid amounting to $1663m. Financing activities were able to generate cash flows that amounted to -$2399M in that financial year. The total operating cash flow from various operation activities amounted to $4450 1.
Investing activities The company participated in various investment activities in the financial year 2017 by seizing the various opportunities that were available as follows. The company sold investment securities and financial instruments that were worth $111m. The company also received $3510m from disposal of associates while it incurred a total of $4224 acquiring more associates (Macquarie. com, 2017). Therefore, the total assets for the financial year 2017 were higher compared to the total liabilities for the whole year. Deducting the total liabilities from the total assets left the company with net assets worth $ 18,180M. Apart from assets the company also had equity worth $18,180M. Total equity owned by the company was made up of the following aspect; contributed equity, reserves, retained earnings and non-controlling equity.
SECTION TWO: RATIOS 2. B/173. B*100= 1. B/160. B=0. The Return On Asset Ratio has been shifting upwards indicating that the level of management has also been shifting upwards. It shows that the company has been on an upward trend in inventory turnover indicating the company has been able to sell its services well comparing to the stock it has. Quick ratio This is a ratio that is used determine how well a company can be able to meet its short term financial liabilities. Acid test ratio is another term that is used to refer to the quick ratio (Scott, 2015). A quick ratio with a figure higher than 1. indicates that the company is able to meet its current financial obligations and is also used to indicate the security of the company in the short term.
B= 0. The Quick Ratio for Macquarie Group has been shifting upwards for the last three years. This is an indication that the company is able to meet its current liabilities and thus a good indicator of financial performance. Price Earnings ratio This is the amount that an investor can expect to reap per every dollar amount that they have committed in a company so that in return they can get one dollar of that specific company. This ratio is also at times referred to as price multiple ratio (Hoyle et al. The board of management has been at the forefront encouraging its employees to make sure that they ensure that there us compliance to the laws and regulations that are set by the regulating authorities and also as set out in the policies of the company.
The organization has also developed a code of conduct policy and what we stand for policy that they use to ensure that that employees are at all times aware of how they should conduct themselves at any given time in the company. The management and the staff are guided by the principles of Opportunity, Accountability and integrity which enable them to be able to conduct themselves in their day to day activities in the company (Allen& Pryke, 2016). It is a fundamental expectation of the management and the staff to handle themselves in a manner that is deemed to be honest and fair while relating with the clients and other counterparties of the company. As per the code of conduct, all employees must not conduct themselves in a manner that is deemed to be improper, unlawful and unethical in the organization.
It has developed an Environmental, Social and Governance risk management across the organization to ensure that the company supports in the transition to low carbon economies (Ismail, 2017). This is done thorough conducting businesses in environments that use renewable energy, clean technology and environmental markets. Reports of the performance of the company ESG are regularly produced which ensure that the company is able to keep check on its environmental footprint in the economy. The company has since the year 1985 been contributing to the community where it is founded. The company has been actively engaging in corporate social responsibility by supporting not for profit organizations that are committed towards the improvement of the welfare of the communities. It portrays a picture of a company that is committed to growth at all times and by all means.
I would therefore not fear to invest in this company since I know that my money and capital would be secure here. References Allen, J. Pryke, M. Offshoring the Nation's water. M. Accounting for managers: Interpreting accounting information for decision making. John Wiley & Sons. Hoyle, J. B. macquarie. com/cn/about/investors/reports [Accessed 17 May 2018]. Scott, W. R. Financial accounting theory (Vol.
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