Financial Analysis Report A sample ‘Table of Contents’ EXECUTIVE SUMMARY INTRODUCTION Mention the stakeholder, the company, (very brief) company operations and reasons for the report RATIO ANALYSIS ·...

FINANCIAL ANALYSIS REPORT
EXECUTIVE SUMMARY
This report is intended to analyze the financial health of AGL Company. It is Australia’s one of the largest retailer in gas and electricity supply. A financial analysis is conducted in this report both using financial ratios and non- financial indicators. A trend analysis of the company’s financial statements over the last years and an analysis of the industry and its competitors are also covered in this report. The financial statements are also analyzed vertically and horizontally and the company’s key social responsibility is also discussed. The report ends by making a conclusion on the financial strength of the company and providing appropriate recommendations.
TABLEOF CONTENTS
1. EXECUTIVE SUMMARY
2. INTRODUCTION
3. RATIO ANALYSIS
A) FINANCIAL RATIO
B) NON – FINANCIAL KEY PERFOMANCE INDICATORS
4. TREND ANALYSIS
5. CORPORATE SOCIAL RESPONSIBILITY
6. INDUSTRY / COMPETITOR ANALYSIS
7. HORIZONTAL ANALYSIS
8. VERTICAL ANALYSIS
9. CONCLUSION AND RECOMMENDATION
10. REFERENCES
INTRODUCTION
AGL Limited is an Australian listed public company involved in both the generation and retailing of both gas and electricity for residential and commercial use. The company has its headquarters in Sydney, Australia. It was founded in 1837 and is mainly focused in the electricity generation industry. It is the largest investor in the country’s renewal energy sector. They provide 3.95 million electricity, gas and telecommunication services to the residents, small and large business and wholesale customers. The motive of the company is to innovate in energy and other essential services to enhance the way Australians live and to help preserve the world around for the future generation.
RATIO ANALYSIS
A ratio analysis is a quantitative method of gaining insight in to a company’s liquidity, profitability and operational efficiency by studying the financial statements such as balance sheet, income statement and cash flow statement. Ratio analysis is a corner stone of fundamental equity analysis. Ratio analysis helps to identify how a company has been performing over years.
A) Financial Ratio
a) Current ratio
Current ratio         =    
    Year
    Ratio
    2020
    1.31
    2019
    1.33
    2018
    1.58
    2017
    1.32
    2016
    1.40
A current ratio shows an analysis of the financial position of the company; it shows that whether the company would be able to meet its short term liabilities that arise during the year with its current assets available. The industrial standard outcome of a current ratio is 2:1, which shows the company is balanced, steady and healthy.
b) Debt to assets ratio
Debt to assets ratio        =    
    Year
    Ratio
    2020
    .45
    2019
    .47
    2018
    .43
    2017
    .43
    2016
    .45
The debt to assets ratio is a leverage ratio that defines the total amount of debt relative to the assets owned by the company. It shows the degree by which a company has used debts to finance its assets. A ratio below 1 show that the greater portion of assets is funded by the equity not the borrowed fund. An analysis of the results above shows that the company’s assets are funded mostly by the equity fund than the outside debts.
c) Return on Sales
Return on...