The paper 'Current News and Company Performance' is a great example of a Finance and Accounting Assignment. Invest Smart News Articles is dated 6th December 2013. It gives an investor a brief overview of the company's performance in the Australian stock exchange. The news later describes Caltex Company limited as a transport company dealing in fuel shipment to different countries. It further gives the company strategic analysis. It states that CTX strategy is based on lifting refinery utilization rates so it can take full advantage of excess demand for refined product in Australia.
Lastly the article gives the financial performance and summary for the last three years. The full information is attached in Appendix II below. 3.0 Financial performance a. The table below shows the consolidated comprehensive financial statement for Caltex company limited and its horizontal analysis. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2011 Caltex Company limited 2011 2010 Horizontal Analysis $000 $000 Dollar Change Percentage Change Revenue from the sale of goods 22,105,204 18,671,905 3,433,299 18.39% Cost of sales 20,903,989 - 1,237,358 17,600,469 -1422.42% Gross Profit 1,201,215 1,071,436 129,779 12.11% Other Income 296,517 261,174 35,343 13.53% Employee Benefits Expenses 486,201 418,133 68,068 16.28% Lease and occupancy expenses - - - #DIV/0! Depreciation and amortization expenses 15,552,780 - 15,552,780 #DIV/0! Advertising, marketing, and visual merchandising expenses 621,334 588,284 33,050 5.62% Administration expenses 92,788 110,674 - 37,886 -34.23% Net financing expenses 69,240 59,181 10,059 17.00% Other expenses 72,788 110,674 - 37,886 -34.23% Profit before income tax expenses 1,021,767 442,295 579,472 131.01% Income tax expense 308,546 124,317 184,229 148.19% Profit after income tax expense - 713,221.00 317,978 - 1,031,199 -324.30% b.
In the financial year ending December 31st, 2011, the company made a net loss of $ 713,221; this is contrary to the previous year when the company made a net profit of $ 317,978 showing a total percentage decrease in profit from 2010 by - 324.30%. 4. 0 Statement for the financial position for the company a. Year 2011 2010 Difference Percentage change Cash 1,818 18,377 - 16,559 -90.11% b. payables with a total of $ 1,674.017 c. Equity payable for 2011 is $ 543,415 and for 2010 is $543,415 It remained the same for the two years; 5.0Cash flow statement Receipt from customer, $25,636,433 (operating activities) Net proceeds from sales of property, plant, and equipment = $37,911 (investing activity) Proceeds from borrowing $ 12,741,419 6.0Financial statement notes The accounting principle used is a historical accounting concept where assets are recorded at a historical cost that is the cost at which they were bought.
It is also prepared in accordance with the Australian Accounting Standard Board and international financial reporting standards. Other important issues in the notes include accounting estimates and judgments, product duties and taxes, cost of goods sold, employees benefits, Amortization among others Auditors are KPMG $ 20,0256 7.0Accounting is about communicating economic information: One of the external users of this report is potential investors.
The investors are interested in knowing the general company performance and how it is being managed. Of great interest is whether the company makes a profit or not in which the information from the comprehensive income statement will be of greater interest as it will enable the investor to compare the company performance with similar companies in the same industry. All investors want to invest where they will maximize the profit with minimal losses incurred. Appendices appendix: company information General Information Company Name: Caltex Australia Limited Stock Code: X Website: www. caltex. com. au GICS Sub-Industry: Oil & Gas Refining & Marketing Market Cap ($M): 5,098 Equiv.
Shares (M): 270 Appendix II: current news and company performance Current Broker Consensus Recommendation Recommendation: Sell Recommendation Date: 6th Dec 2013 12 Month Target Price (average): $18.585 Brokers Surveyed: 6 Company Overview Business Description: Caltex Australia Limited (CTX) is a transport fuel supplier, convenience retailer, and an integrated oil refining and marketing company. It operates two major refineries at Kurnell in Sydney and Lytton in Brisbane. The company also operates with a myriad of subsidiaries; Caltex Australia Custodians, Caltex Australia Petroleum, Caltex Fuel Services, Petroleum Services, Hunter Pipe Line Company, B& S Distributors and Jet Fuels Petroleum Distributors. Strategy Analysis: CTX strategy is based on lifting refinery utilization rates so it can take full advantage of excess demand for the refined product in Australia.
Refiner margins can be volatile but high refinery utilization rates and strong marketing activities are important in driving operating cash flow and earnings. This allows for the reduction of debt levels and improving the return on equity and the return to shareholders. The alliance with Woolworths underpins volume growth. The CEO aims to lift CTX into the top quartile in terms of total shareholder return and to eliminate earnings volatility - a very big task.
Caltex Australia reported NPAT of $57.6m for the year ended 31 December 2012. This includes significant items of approximately $309.0m (after-tax), which primarily relates to provisions in respect of the closure of the Kurnell refinery. This compares favorably to the 2011 after-tax loss of $713.22m, which included significant items of $1.12bn (after tax) relating to the refinery impairment. The 2012 result includes product and crude oil inventory losses of $92.0m after-tax, compared with an inventory gain of $138.0m after-tax in 2011.
Revenues from ordinary activities were $23.26bn, up 5% from last year. Basic and Diluted EPS was 21.0 cents compared to (264.3) cents last year. Net operating cash flow was $399.74m compared to $446.4m last year. The final dividend declared was 23.0 cents, taking the full-year dividend to 40.0 cents compared with 45.0 cents last year. Financial Summary Year to Dec NPAT EPS EPS (%) PER DPS Yield (%) Franking (%) 2014 F 406.5 148.9 -7.7 12.7 104.0 5.5 100.0 2013 F 440.6 161.4 -3.8 11.7 58.0 3.1 100.0 2012 A 458.0 167.7 73.0 8.8 40.0 2.7 100.0 Source: Morningstar analyst estimates. Peer Comparison EPS Growth (%) P/E (%) Dividend Yield (%) Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F Caltex (CTX) $5,127 M -0.5641 0.1911 -0.0773 14.0179 11.7687 12.7552 0.0211 0.0305 0.0548 Market Comparison Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio X 1.60 11.8 2.37 2.45 0.22 Market 1.08 14.9 1.23 1.99 1.61 Sector 1.62 12.5 0.77 4.09 6.59 Directors Name Position Start Date Mr.
Peter Wissel Alternate Director for Mr. Fish and Mr. Jones-Cervantes 23 August 2005 Mr. Julian Segal Chief Executive Officer, Managing Director 01 July 2009 Ms. Elizabeth Bloomfield Bryan Non-Executive Chairman 18 July 2002 Mr. Greig Gailey Non-Executive Director 11 December 2007 Mr. Trevor Bourne Non-Executive Director 02 March 2006 Mr. Bruce Morgan Non-Executive Director 29 June 2013 Ms. Barbara Burger Non-Executive Director, Alternate Director - Mr. Richard Brown and Mr. Ryan Krogmeier 28 June 2012 Mr. Ryan Krogmeier Non-Executive Director, Alternate Director - Mr. Richard Brown and Ms. Barbara Burger 30 March 2012 Mr. Richard Brown Non-Executive Director, Alternate Director - Ms. Barbara Burger and Mr. Ryan Krogmeier 28 June 2012 Management Name Position Simon Hepworth Chief Financial Officer Peter Lim Company Secretary Katie King Company Secretary Simon Willshire General Manager - Human Resources Andy Walz General Manager - Marketing Gary Smith General Manager - Refining & Supply Mike McMenamin General Manager - Strategy, Planning, and Development Calendar of Events Date Event 25 August 2014 Report (Interim) 21 August 2014 Report (Interim) 27 March 2014 Report (Annual) 24 February 2014 Report (Prelim) 21 February 2014 Report (Prelim) © 2011 Morningstar, Inc.
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DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www. morningstar. com. au/fsg. asp. Top of Form InvestSMART SearchEnter company name, fund name or stock code Bottom of Form InvestSMART Portfolio Manager Track your assets and manage investments easily InvestSMART Newsletters Keep up with the latest news and information Trade shares online from $19.95 Open an account and start trading today Advertisement Appendix iii: consolidated statement of comprehensive income Appendix IV: Statement for the financial position for the company Appendix V: Cash Flow statement for the Company \ Appendix VI: Financial Notes of the Company