Business and Strategic Analysis - Brambles Limited - Example

Brambles Limited xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Table of Contents Table of Contents ii 1.0 Introduction 1 2.0 Business and Strategic Analysis 2 3.0 Accounting Analysis 4 3.1 Analysis of the company’s key accounting policies 4 3.2 Why they are essential to the company's activities 6 3.3 Primary areas of accounting flexibility for these policies 6 3.4 Comparison to those of a competitor in the same industry 6 4.0 Financial Analysis 7 4.1 Presentation of relevant ratios for Brambles Limited and Greystone logistics international (competitor) 7 4.2 Interpretation of relevant ratios for Brambles Limited and Greystone logistics international (competitor) 10 4.3 Time series analysis for both companies 10 4.4 Evaluation of the company’s cash flow position 11 4.5 Analysis of the company’s overall financial position 12 5.0 Prospective Analysis 13 5.1 Forecasts and presentation of key elements of income statements and balance sheets 13 5.2 Reasons for the major forecast items 17 5.3.0 Valuation of the company 17 5.3.1 Discounted cash flow model 17 5.3.2 Market valuation 18 6.1 Summary of the report 19 6.2 Accounting analysis 19 6.3 Comparison of the estimated value per share with the market value 19 7.0 Conclusions 20 8.0 References 21 1.0 Introduction According to Montañés & Díaz (2012) Brambles ltd is a company in Australia that is in the commercial and professional services and whose management is mostly Australian based. It provides crates, containers, pallets and other logistic services both internationally and in Australia to manufacturers, retailers, consumers and wholesalers. These pallets, containers and crates are re-usable and are used for transportation of goods. Therefore the company also provides transport management services for transportation. The company also provides pooling services through IFCO and CHEP brands. They also facilitate information management services through Recall which is a firm that enables customers to store or dispose safely their information. They also offer digital solution service for data management. It serves industries such as food, automotive, chemical and aerospace among others. It has many competitors but aims at maintaining the lead in value and price of goods and services through implementation of goal oriented strategies in their activities. Bramble ltd aims at being recognized as a global leader in sustainability and corporate responsibility in provision of transportation and information management services. It also aims at ensuring sustained consumer satisfaction by being leading producers of transportation and information services. It is the company’s objective also to ensure efficient environment and sustenance of the supply chain. This report is focused at providing an analysis on the performance of the company on its various aspects which include among others financial, profitability, competitive advantage and strategic analysis. This will enhance our understanding of Bramble limited and the factors affecting its strategies and also keep us to date with the performance and the developments in this company. 2.0 Business and Strategic Analysis Bramble limited through CHEP that offers pooling services facilitate supply of goods through the chain of distribution using the containers, crates and pallets it provides for its consumers. This transportation equipment are re-usable so when the goods are taken to the planned destination the crates, containers and pallets are returned back to the company where they are prepared to be used again for transportation of other goods. Through Recall Bramble limited also manages information for its clients. One of the strategies in place for bramble to improve its growth is demerging Recall to a holding company in the stock exchange. This will result to Bramble losing its share in Recall while its shareholders get shareholding proportionate to their share in Bramble.This means that Bramble will be able to fully concentrate on its pooling solutions with CHEP and IFCO and thus will result to growth in the company as well as increase in its profitability in the future. Recall on the other hand will be able to focus on global information management which will increase it revenues which will result to increased returns for the shareholders the increase will also fund further growth in the company (Carlin & Finch 2007). The company serves customers internationally, thus has to ensure that it offers best value goods to be able to keep ahead of its competitors. They have also friendly prices which match with the value of their goods. The company has strategies for sustainable growth in its sale, profitability, services and cash flow. This will lead to sustenance of their objective and growth in the shareholders value. This core growth strategy is what led the management to the decision of demerging Recall Company from this group of companies. The company has seized the opportunity of ensuring environmental responsibility by using reusable pallets, crates and containers. This is a strategy that has given them competitive advantage since everyone in the market want to be socially responsible for the environment. They also manage the retrieval, storage and destruction of information which ensures environmental protection through proper disposal of waste (Ferreira & Rezoned 2007) According to Porter (2008) the success in a company is determined by how much commitment are there to the companies goals. This commitment is enhanced through the competitive strategy that is in place. Brambles limited have a strategy to enhance quality services to its customers and this is what has made them to be able to keep ahead of its competitors. The operation management has ensured that their operations are without mistakes and thus they are able to achieve sustained consumer satisfaction. The company is also very dynamic which has enabled them to keep up with the changing market and economy. The business also has differentiated strategies for its financial management, marketing of its services, management of its activities and production of their services. This has provided a platform for constant evaluation of the company’s activities. Brambles limited has a wide range of customers which has expanded its place in the industry this is because it operates in the transportation industry where it is in the lead in offering ways through which goods can be transported through the chain of distribution. The company is very competitive in this industry because it is able to issue, transport, return and reissue the crates and containers. This facilitates activities in the manufacturing industries since they have a variety of ways to appropriately transport their products which range from fresh products and perishables to dry products. The company also has its place in the automotive industry where it facilitates carriage of bulky goods to their place of destination. Through IFCO the company also offers logistic services on the use of the reusable crates and containers globally. The company is also prominent in the communication industry due to its data and information management services for its customers. This is facilitated through secure internet connections that enable digitalized data management. Bramble limited like any other multi-national company is affected by inflation and changes in the interest rates in its countries of operation. Bartram (2008) points out that this affects their decisions since for them not to be affected by these economic factors bramble has to consider them in their decisions. The company has to come up with strategies to hedge the risks arising from these economic challenges. They also need to plan their operation costs with these factors in mind so that their profitability is not affected in future. It is important for the company to be keen on the changes in the exchange rates, inflation rates and changes in the interest rates since they affect the countries performance and determine the purchasing power of their customer. 3.0 Accounting Analysis 3.1 Analysis of the company’s key accounting policies Brambles Limited prepares its financial statements in accordance with the international financial reporting standards (IFRS). Most of the Australia accounting standards (AAS) provisions and requirements are adopted from the IFRS, (Cheung et al, 2008). The firm’s financial statements are also in line with the provisions of Australian accounting standards board (AASB) authoritative pronouncements. Corporations Act of 2001 requirements has as well been observed in preparation of these financial statements. In this light, all the above provisions and requirements provide that a company must prepare its financial statements using certain policies and disclose them as foot notes in the statements. This is to help the users of the statements to understand the basis of their preparation. As defined by international accounting standards 8 (IAS 8), accounting policy are the bases, specific principles, practices, conventions and rules that an entity applies in preparation and presentation of its financial statements, (Jubb 2005). There are three key accounting policies that Brambles Limited has used in preparation of these financial statements, these are; Valuation of inventory, this is very essential; there are various methods that are used to evaluate the value of the inventories. Inventories present and compose a very important part of the financial statements. This is because they determine the amounts of profits or income that this company will correct. The method used to value the inventories will determine the amount of profit. Inventories can be valued using first in first out (FIFO) method, their average costs and the net realizable value of the lower of cost. Brambles Limited values its stocks at the lower of their costs and their net realizable value. The company gives provisions where there is possible obsolescence of the stocks where appropriate. This policy of valuing inventory adopted by this company is very important as it gives the real values of the stocks; it prevents inflating their values of deflating them. Inventories are composed of work in progress and finished goods Brambles Limited records work in progress lower of realizable value and costs as well. The inventory costs are calculated using FIFO basis appropriately including parts of the overhead expenditures attributable to the inventories, (Murray 2008). The net realizable value is the amounts that are estimated as selling price of the stocks in the course of business operations, this is after Lessing the costs estimated to complete the work in progress and selling costs. Proper valuation of the stocks, as discussed above, gives real profits. Another accounting policy used by this company is presentation currency. The firm uses the US dollar as its presentation currency. The reasons for this, as stated in its financial statements, are significant part of its entities activities are denominated in US dollars and that the US dollar is widely understood and used in Australia , united kingdom and by a host of international analysts and investors. It therefore consolidates and summarizes its financial statements using US dollar. However its entities measures and presents their individual statements using functional currency of their respective countries. When translating the currency transactions to functional currency, it uses the prevailing exchange rate at the dates of transactions. This results to foreign exchange losses or gains. Brambles Limited recognizes this in its income statement. To ease translation of statements and transactions, Brambles Limited, its subsidiaries associates and joint ventures translates them into US dollar using averaged exchange rate for the period. In addition, Brambles Limited measures liabilities and assets at their fair values on acquisition. It treats the excess of acquisition cost and fair values of net assets acquired as goodwill. Discount on acquisition (net assets being higher than cost of acquisition) is credited to the income statement as well. This is the recommended policy by the AASB 3: business combinations. 3.2 Why they are essential to the company's activities These policies are essential to the company's activities for the purpose of streamlining the firm’s decisions. They help give the real values of transactions and goods that the company entities and it deal with. This is reflected in the financial statements as correct information representing real values. There is consistency in the application of these policies among the firm’s entities and the whole group. Judgment in dealing with these policies is harnessed and therefore removes variance in judgment and preparation of statements. Brambles Limited is a multinational firm operating in many countries, to accommodate different economic conditions of the respective countries, application of defined policies helps the Brambles Limited to streamline its activities reflecting true and real business conditions. 3.3 Primary areas of accounting flexibility for these policies As it is with any accounting policy adopted by a company, these policies are flexible and can allow for changes as and when circumstances dictate. Brambles Limited can decide to review the way in which it treats new acquisitions, upon review the policy must be within the bounds of the regulatory frameworks, that is, IFRS, IAS and AASB. These policies used by Brambles Limited have little room for making changes and are therefore not much flexible. Inventories can be valued in the two ways, their costs or net realizable value. The firm can drop one and go with the other (value inventory at costs or net realizable value). Translation of currency transactions may vary as it depends on the exchange rates present in individual countries, this is much flexible. AASB 3 on business combinations provides strictly recognition of goodwill or discount upon acquisition. This leaves little room for adjusting. 3.4 Comparison to those of a competitor in the same industry Brambles Limited main competitor is Greystone logistics international. The two companies are in the same industry and they are multinational corporations. These firms apply the same accounting policies discussed above. Much of their activities are affected by exchange rates and valuation of activities. The application of the same accounting policies in the said areas is because they are under the same reporting requirements and regulations, AASB and Corporations Act 2001. The purpose for use of on reporting currency by both firms is to assist in operations and activities. 4.0 Financial Analysis 4.1 Presentation of relevant ratios for Brambles Limited and Greystone logistics international (competitor) Ratio Formulae Brambles Limited Greystone logistics international     2013 2013 Profitability ratios   US$ million US$ Gross profit margin (Gross profit/revenue) x 100 (859.7/5889.9)*100 14.60 (5256732/24085184)*100 21.83 Net income margin (Net income/revenue) x 100 (640.6/5889.9)*100 10.88 (2793210/24085184)*100 11.60 Operating profit margin (Operating profit/revenue) x 100 (1011.2/5889.9)*100 17.17 (3067607/24085184)*100 12.74 ROCE EBIT/net assets (1011.2/3025.4) 0.33 3067607/5621965 0.55 Selling & admin to sales sell and administration expense/ sales 334.7/5889.9 0.06 577433/24085184 0.02 Cost of sales margin COGS/sales 447.4/5889.9 0.08 2256732/24085184 0.09 Debt utilization ratios           Gearing ratio Debt/shareholders funds 2686.4/6618.5 0.41 9658020/53142717 0.18 Return on equity margin Net income/equity 640.6/3025.4 0.21 2793210/4036055 0.69 Sales return Sales/capital employed 5889.9/3025.4 1.95 24085184/4036055 5.97 Return on fixed assets Profit/fixed assets 640.6/6571 0.10 2793210/8274510 0.34 Debtors/ stock turnover (Trade debtors/sales) x 365 (1124.2/5889.9)*365 69.67 (2239594/24085184)*365 33.94 Creditors turnover (trade creditors/purchases) x 365 (1253.5/447.4)*365 1022.64 (1643339/18828452)*365 31.86 Interest cover EBI/interest 1011.2/131.2 7.71 3067607/828897 3.70 Liquidity ratios           Current ratio Current assets/current liabilities 1380.9/1593.6 0.87 3770067/6422612 0.59 Quick ratio (Current assets-inventory)/current assets (1380.9-56.2)/1593.6 0.83 93770067-1044379)/6422612 14.44 Assets utilization ratios           Assets turnover assets/net income (7951.9/6035) 1.3263 (12044577/24085184) 0.5034 Total assets turnover total assets/total revenue 7951.9/6035 1.32 12044577/24085184 0.50 Net assets turnover net assets/total revenue 3025.4/6035 0.50 5621965/24085184 0.23 Current assets turnover current assets/total revenue 1380.9/6035 0.23 3770067/24085184 0.16 Return on assets (ROA) Profit/total assets 640.6/7951.9 0.08 2793210/12044577 0.23 Return on fixed assets Profit/fixed assets 640.6/6571 0.10 24085184/8274510 2.91 Total assets financing total assets/equity 7951.9/3025.4 2.63 12044577/5,175,933 2.33 Investor ratio           Earnings per share Earnings to shareholders/weighted average shares (640.6/1555.7)*100 41.18 (2793210/26,111,201)*100 10.70 4.2 Interpretation of relevant ratios for Brambles Limited and Greystone logistics international (competitor) The gross profit margin indicates the firm’s ability to control its production costs consistently and the level of management of the margins of the products it buys and consequently sells. Brambles Limited has lower gross profit margin than its competitor hence it needs to manage well its production costs by increasing efficiency. The return on capital employed indicates the returns that the management has generated using the resources available to it, before making distributions of returns. The net profit margin indicates the net returns the firm has made from its sales. The sales return for the two companies are showing the utilization level of the total assets. It shows the amount of sales generated by the worth of assets of the firms. The stocks indicate how much amount of cash is tied up in inventory. Brambles Limited stock turnover is within the industry recommended rate. Too much cash in inventory hinders growth; Brambles Limited and Greystone logistics international should maintain only required cash in inventory and invest the rest in profitable portfolios. In relation to this, the firms should not allow too much time to their debtors for repayment of debts. Brambles Limited is allowing too much time (70 days), comparing this to the recommended industry period of 45 days, it should reduce the repayment period. Its competitor has 33 days as its credit policy. The current ratio shows the ability of the firms to meet their short term obligations as they fall due (within one year). Both companies have less than one current ratio indicating a concern for their ability to meet their short term obligations. 4.3 Time series analysis for both companies Time series analysis is a succession of arithmetical data that position in consecutive order in most situations occurring in consistent period. The sequence of these numbers is collected at regular intervals over a long period of time. This data for Brambles Limited and Greystone logistics international indicates a how they have used their assets and the investment securities at their disposal. They indicate how these firms have been able to utilize the assets to maximize the wealth of the shareholders. Increasing the shareholders wealth increases the returns distributable to the shareholders, and as the figures indicate, the companies have been increasing the available returns though at a lower rate. This analysis also indicates the changes in economic variables over the period in relation to the generation of income and returns to the shareholders. Of the two companies, Greystone logistics international has been the best returns and is in a healthy financial situation than Brambles Limited. The ratios calculated above show that the conversion ratio of inventories to sales or revenue is higher for Greystone logistics international than for Brambles Limited. This indicates efficiency in the way of management of the inventories and production process. The conversion ratio of the debtors and the creditor’s payment ratio points that there can be improvements for both companies, they can tighten the payment periods from the debtors and in the same way lower the payment terms of its payables. This will increase efficiency and propel the firms towards the industry recommended conversion ratio. 4.4 Evaluation of the company’s cash flow position The net cash flow from operating activities are positive (inflow) and thereby indicate growth, the cash flows also indicate an increase from 2012 cash flows. It increases from US$ 1089.20 to US$1339.90. The amount of cash generated from operations, being the difference between the receipts and payments, is the main source of cash flow from operating activities. This was however reduced considerably by the interest paid. The net cash flow from the operating activities is healthy and is a sign of growth from the previous year’s cash flows. The net cash flow from investing activities indicates an outflow which is an increase from the previous period. The only inflow from the investing activities is the sale of property plant and equipment while the others are outflows of costs and payments. Brambles Limited disposed some business which were making losses and were not sustainable, this resulted in making losses. The net cash flow from the investing activities illustrates the firm’s commitment to make investments in terms of buying of new machinery, plant and equipments and acquiring new businesses (subsidiaries). This will pay off by increasing the returns in future. The financing activities of the firm illustrate an outflow of cash. The firm issued new ordinary shares which they used to finance some of their investments and operations. The firm’s hedge instruments generated an inflow which was an increase from the previous returns. The outflows are for payment of dividends to the shareholders and the repayments of borrowings. The firm made some borrowings also in financial year 2013. The net cash flow of the firm indicates positive cash inflows from all the activities of US$75. However this is a decrease from the previous accounting period (2012, US$152.70), this has been brought because of the opening overdraft at the beginning of the 2013 financial period. On a positive note, the company does not have overdraft at the end of the 2013 period. 4.5 Analysis of the company’s overall financial position Brambles Limited is in a healthy financial position. This is indicated by the positive net cash inflow from the cash flow statement. It is able to finance its borrowings adequately, it is also investing a lot in long term assets which is very good. Brambles Limited is not highly geared; it is within the recommended industry level. The income statements illustrate that it is making profits. The firm has maintained a good balance between assets and liabilities. Moreover, it is distributing returns and paying dividends, all these are indications of good financial position. It does not have too many borrowings. Too much borrowing makes a firm to be highly geared. Overall, Brambles Limited is in a very good financial position. 5.0 Prospective Analysis 5.1 Forecasts and presentation of key elements of income statements and balance sheets Brambles Limited Forecasted Income Statement for Five Year Period Particulars Currency in Million US$ June 30 2014 June 30 2015 June 30 2016 June 30 2017 June 30 2018 Revenues 6066.57 6248.59 6436.05 6629.13 6828.01 cost of goods sold 3993.21 4113.11 4236.39 4363.48 4429.22 Gross profit 2073.36 2135.48 2199.66 2265.65 2398.79 Selling General & Admin Expenses, Total 349.788 360.28 371.09 382.22 393.68 Depreciation & Amortization 564.44 581.37 598.81 616.78 635.28 Total operating expenses 914.228 941.65 969.9 999 1028.96 operating income 1139.79 1173.99 1209.21 1245.48 1282.85 Interest expense 129.36 133.24 137.246 141.36 149.97 interest income 1.751 1.81 1.85 1.91 1.97 gross gain/loss on sale of assets 16.1 17.5 18.02 18.57 19.12 EBIT 2187.413 2253.89 2321.594 2391.25 2523.8 Income tax expense 268.11 276.15 284.44 292.97 301.74 earnings from continued operations 659.9 678.89 699.23 720.21 741.81 earnings from discontinued operations 0.72 0.74 0.76 0.78 0.81 Net Profit 2579.923 2657.37 2737.144 2819.27 2964.68 Brambles Limited Forecasted Balance Sheet For 5Year Period Particulars Currency in Million US$ Period 30-Jun-15 30-Jun-16 30-Jun-17 30-Jun-18 Noncurrent Assets net property plant and equipment 4767.58 4958.29 5156.62 5362.88 goodwill 1878.42 1953.55 2031.69 2112.96 investments 32.34 33.63 34.98 36.37 Total Non Current Assets 6678.34 6945.47 7223.29 7512.21 Current Assets Receivables 1080.51 1123.73 1213.638 1262.184 Inventory 60.783 63.217 65.746 68.375 Prepaid Expenses 54.728 56.918 59.195 61.559 Cash And Cash Equivalents 5602.922 5827.323 6015.236 6255.789 Total Current Assets 1346.366 1400.221 1501.191 1561.232 Total Assets 13477.262 14016.658 14577.105 15160.117 Equity And Liabilities Common Stock 7158.568 74445.914 7742.708 8052.417 Retained Earnings 3412.546 3549.056 3691.024 3838.672 Total Common Equity 10571.114 77994.97 11433.732 11891.089 Non Current Liabilities Long Term Debt 2893.713 3009.461 3129.839 3255.033 Capital Lease 12.435 12.957 13.534 13.995 Total Non Current Liabilities 2906.148 3022.418 3143.373 3269.028 Current Liabilities Payables 507.271 527.564 548.663 570.61 Accrued Expenses 939.914 977.506 1016.706 1057.2732 Short Term Borrowings 58.298 60.636 63.055 65.577 Total Current Liabilities 1505.483 1565.706 1628.424 1693.4602 Total Liability And Equity 13477.262 14016.658 14577.105 15160.117 5.2 Reasons for the major forecast items While forecasting the key elements of the income statement and the balance sheet for Brambles limited for the next five years it is important for one to analyse the trend of this elements from past years financial statement. The trend of this company will help one thus establish the performance of the organization over the past years so that one can make informed forecasts. Each business has it seasons understanding the different seasons for Brambles helps in projecting the sales for the next five years. The elements of the financial statements forecasted are dependent on the activities being carried out in the company it is therefore important to understand the various activities in place and expected to take place in the course of these 5 years. Considering the current value fixed assets it is important to consider their economic life and their percentage as well as the method for depreciation. There is also the consideration of the industry in which the company is operating this guides by considering the trend of the competitors as well as the performance of the industry. The expected changes in the economy’s inflation rate, exchange rates and interest rates have been considered in projecting sales, debt, expenses, incomes and the inventory. The sales are expected to increase over the years due to increased demand and increased marketing of their goods. 5.3.0 Valuation of the company 5.3.1 Discounted cash flow model This model helps determine the general value of stocks and compares it with similar investments in the market. It determines the stock prices. End of year 2013 (US$m) Revenue 6035 -Expenses 4537.3 -Depreciation 492.9 EBIT 1004.8 EBIT(1-t) 703.36 +Depreciation 492.9 Capital expenditure 345 Change in WC 160.2 Net cash flows 691.06 Discounting value 0.925925926 PV 639.8703704 Total PV 639.8703704 less debt 135.8 Equity value 504.0703704 Number of shares 48.57367436 Value $ 10.38 5.3.2 Market valuation Total assets divide by the total number of shares trading in the market. Total assets = US$ 48,437,400 Number of shares = 5,370,000 Value = 48,437,400/ 5,370,000 = $9.02 6.1 Summary of the report Jayne, & Dipboye, (2004) recommends that diversity in a business is essential for enhancing profitability. Therefore, Brambles limited having demerged Recall from the group will need to revise their business and corporate strategy. This will enable it to renew their goals and objectives and have the right strategies in place to facilitate the achievement of these goals. Their aim for demerging Recall is to achieve more growth by the company concentrating on offering pooling services and logistics solutions globally through CHEP and IFCO. This means that they have to renew their strategies into one that will enhance more sales revenue and eventually boost their profitability. It would also be wise for the management to think of other services related to their transportation that they can offer and gain more competitive advantage over their competitors. The company is aimed at being responsible for the environment that is why they use reusable crates and containers. It would be good for them to also come up with environmentally responsible strategies that will help them dispose the crates and containers that are beyond being reused. 6.2 Accounting analysis According to Belkaoui, (2004) it is important for the company adopt strategies that help maintain their receivables as lowest as possible as well as ensure that the organization does not suffer losses due to their debtors failing to pay off or even taking too long. They can adopt strategies of selling their debts at given cents on the dollars so that they minimize the amount they spend on delinquent receivables or from having to write off their debts. 6.3 Comparison of the estimated value per share with the market value The estimated value per share of $10.38 is higher that the market value of the shares of $9.02. This means that the company stocks are undervalued in the market. The real value of the shares is $10.38 but they are trading at a lower price. For investors who may wish to buy Brambles Limited stocks, the market value represents the best price for the investor to take advantage of. Investors can buy this stocks hoping that the stocks will trade or reflect the real value of the shares as determined. However, though they are undervalued, the margin of undervaluation is not big. It warrants the difference and therefore the management of the company should not be more concerned of the undervaluation. In any case, this undervaluation serves them good. Instead of focusing too much attention to the stocks undervaluation, the management should explore some investment opportunities to boast the revenues and returns. 7.0 Conclusions Using embedded real time market data in deciding which investment to undertake. As mentioned above, it is good for the company to have diversified investment portfolios so as to distribute risks and increase returns to the shareholders. Brambles Limited has a number of investments in associates and subsidiaries operating in different industries and sectors. The internal operations of the firm should also be evaluated. The purpose for this is to increase efficiency and effectiveness. One aspect to improve is the effect of the exchange rate, the dollar cost average should be maintained relative, this is one of the expenses and or costs that the company should minimize and if possible do away with. It should hedge more that it is using as exchange costs. This report has discussed Brambles Limited’s financial and market information critically deriving relevant data to from the financial statements. Some recommendations are provided on how it can improve its efficiency of operations. 8.0 References Bartram, S., M., 2008, what lies beneath: Foreign exchange rate exposure, hedging and cash flows? Journal of Banking & Finance, 32(8), 1508-1521. Belkaoui, A. R. 2004, Accounting theory, CengageBrain. Carlin, T., & Finch, N., 2007, Early impressions of Australia's brave new world of goodwill impairment, Available at SSRN 954667, Cheung, E., Evans, E., & Wright, S., 2008, the adoption of IFRS in Australia: The case of AASB 138 (IAS 38) Intangible Assets, Australian Accounting Review. Ferreira, D., & Rezoned, M., 2007, Corporate strategy and information disclosure, The RAND journal of economics, 38(1), 164-184, Jayne, M. E., & Dipboye, R. L. 2004, Leveraging diversity to improve business performance: Research findings and recommendations for organizations, Human Resource Management, 43(4), 409-424. Jubb, C., 2005, March, Transition to IFRS: Listed companies’ expected accounting policy impacts as revealed by AASB 1047 disclosures, In AFAANZ Annual Conference, Melbourne, Australia. Montañés, E. G., & Díaz, A. 2012, Redesigning organization, systems and networks: the transformation of the European network of CHEP, International Journal of Business Excellence, 5(5), 521-534. Murray, A., 2008, when Silence is [a] Golden [Thread]: Approaches to the Construction of Indemnities, Exclusions and Guarantees in Commercial Contracts Since Andar Transport v Brambles Limited. Commercial Law Quarterly: The Journal of the Commercial Law Association of Australia, 22(1), 14. Porter, M., E., 2008, The five competitive forces that shape strategy, If you read nothing else on strategy, read these best-selling articles., 25. Read More