The Big Five

The Future is Here.

Business Valuation Report

Confidential

ASSIGNMENT PART B
James M. Myers, CEO of Petco.
Subject Code: ACCT10001
Student ID Number:

Subject Name: Accounting Reports and

Analysis
Student Name:

Assignment Name or Number:

Student ID Number

Student Name

1.

640840

Wei Ming Lian

2.

639379

Yi Yang Lu

3.

636277

Adrian Agisilaou

4.

635953

Rachel Tan

5.
6.

Executive Summary
This report provides an assessment of the current and prospective profitability, liquidity
and financial stability of Company Alpha and Company Beta. Methods of analysis
include trend, and vertical analysis as well as ratios such as Debt, Current and Quick
ratios. All calculations can be found in the appendices. Results of data analyzed show that
profitability for both companies have decreased. The findings indicate Company Beta is
in an extremely risky position where it the company is unable to pay off its current debts
relative to Company Alpha as it depends heavily on debt funding whereas Company
Alpha relies on equity funding. Based on the analysis conducted, Company Alpha would
be a better investment as it has lower risk and is more favorable for takeover despite its
falling EBIT, which is the only concern of this company. This can be remedied through
an improved management of expenses. The almost matured loans of Company Alpha also
indicate that upon takeover, loan repayment amounts would be relatively low compared
to Company Beta.

Table of contents
1. Introduction
2. Findings and discussion
a. Company Alpha
i. Profitability
ii. Asset efficiency
iii. Liquidity
iv. Gearing and long term stability
v. Market performance
b. Company Beta
i. Profitability
ii. Asset efficiency
iii. Liquidity
iv. Gearing and long term stability
v. Market performance
3. Conclusions
4. Recommendations

List of tables and charts used

1. Introduction
This report is being issued to James M. Myers, the CEO of Petco. Our aims in producing
this report is to provide insightful information on which company that Petco should
choose to invest in, with justified reasoning. Furthermore, the report will aim to provide
information on how each of these companies performances can be improved.

2. Findings and Discussion

a. Company Alpha
i. Profitability
Our findings indicate that the profitability of Company Alpha has been dropping overall.
The ROA and ROE has experienced significant decreases in the past four years. This is
due to a fall in our EBIT which has been traced back not the falling sale figures, but
rather to a rise in certain expenses; primarily marketing and employee benefits, which
have risen by $214,000 (159%) and $304,000 (34%) respectively. (Past four years) Total
and equity have been holding consistent during this period therefore it is the change in
EBIT that has dictated that has dictated the changes in profitability. The expenses
highlighted above are indicative to the companies attempts to increase sales revenue
through the increase of advertising under the marketing expenses and also the increase of
staff. However, we see that this has proven to rather inefficient as the increase sales of
$1,490,000 (11%) compared against the market expenses (159%). The increase in
marketing is not proportionate with the increase in sales, and therefore there is inefficient
allocation of resources. This has lead to lower profits despite the increase in sales.
The GPM decreased slightly due to the increase in cost price not being reflected in selling
price. Therefore, this has adversely affected the profitability of the firm. The profit
margin has decreased due to the EBIT decreasing at a greater proportion than the increase
in sales revenue. EBIT decreased $457,000 (35%) over the past four years, compared to
the increase in sales revenue $1,490,000 (11%).
The findings for profitability show that our sale mark up for generation of revenue is not
the main problem in this decrease in profitability, rather it is in the inefficient allocation
of resources due to inefficient spending in marketing and employee benefits.
ii. Asset efficiency
The asset turnover has increased due to a increase in sales revenue and a decrease in a
total assets. This has occurred due to depreciation of PPE. The inventory turnover
increased as a result of stock increasing at a greater rate than cost of sales. This was due
to the fact that the company was purchasing more stock than it was able to sell; the
proportion of sales relative to the amount of stock purchase has decreased over the past
four years.
The trade debtors have increased at a greater proportion than sales revenue. The increase
in debtors turnover is explained by the increase in regular customers, indicating a
growing customer base. The companys asset efficiency is not yet at its optimal level, due
to stock overflow and inefficient mark up of prices. The debtors turnover maintains a
positive outlook.

iii. Liquidity
The current ratio has decreased even though current assets and current liabilities have
shown increases. The companys trade and other payables and loans have increased at a
greater proportion to current assets. However, the current ratio still maintains a healthy
ratio of 1.58:1.
Quick Asset Ratio has dropped from 0.80 to 0.54 displaying a growing dependency on
inventory to make up current assets and a decrease in other current assets which
contribute the liquidity of the company. This falling liquidity is due to too much stock
which in turn has increased trade payables.
Liquidity is not optimal shape as the firm is very dependent on sales through inventory to
help its liquidity.
iv. Gearing and long term stability
There is a stable equity and debt ratio, with the firm relying more on an equity relied
model, rather than debt funded business model. The total liabilities have fallen due to
loans almost reaching full maturing and increase in total equity due to increase in sales.
Interest coverage has fallen due to EBIT decreasing at a greater rate than net financing
costs. However, overall gearing of the company is quite stable because of the fact that
company relies more on equitable funding rather than debt. The main concern of the
company is due to the companys inability to generate consistent EBIT due to inefficient
allocation of expenses.
v. Market performance
The companys market performance outlook has fallen, primarily due to the fallen EBIT.
Earnings per share and dividends per share have fallen, which has discouraged
shareholders from purchasing shares. However, the NTAB holds a stable figure
indicating that the company has a rather solid ordinary share holders equity. Overall,
although market performance has fallen, this does not indicate poor performance of the
business, rather, only the poor allocation of expenses. Despite a high price earnings ratio,
the share price is asking for is reasonable as the company is funded mostly by equity
rather than debt and therefore there is less risk involved in investing into company Alpha.

b. Company Beta
i. Profitability
ROA has fallen, due to our inventory increasing at a greater proportion than our EBIT.
However, ROE has increased due to EBIT increasing at a greater rate than equity. This
increase in EBIT is due to an increase in sales, whereas the increase in equity is due
higher reserves from asset revaluations. There has been a large increase in inventory than
a greater rate than EBIT, which in turn has lead to the increase in ROA. It is not
profitable to hold on to a large amount of inventory as storage expenses and maintenance
expenses will be incurred.
The GPM shows a very stable ratio because of a stable mark up as the mark up has been
consistent with the cost of sales. Profit margin has decreased due to a higher sales
revenue but a fallen EBIT figure, which is due to a wage rise of large proportions. The
employee costs have increased a lot proportionally by (2131%) against sales revenue of
(1274%). This has contributed to our overall fall in profitability.
ii. Asset efficiency
ATO has shown an increase, as sales revenue has increased at a greater proportion that
average total assets. The companys inventory turnover has increased because the average
total assets are greater than that of the cost of sales; a significant surplus in stock.
Debtors turnover has been stable in the past 3 years as the level of credit sales is
proportionately the same to the level of sales that has been generated. Asset efficiency
has not improved or deteriorated.
iii. Liquidity
Current ratio has increased due to our large increase in inventory (1904%) against a slight
increase in current liabilities. Our quick asset ratios have increased, however, it is much
lower than current ratio which therefore identifies that the company is highly reliant on
inventory for liquidity demands. Should the loans which are at present non-current
liabilities, become current liabilities the current ratio will reduce to less than 0.2.
iv. Gearing and long term stability
The debt ratio has increased dramatically over the past four years indicating that majority
of the business assets are funded by liabilities, mainly of the form of interest bearing
loans and borrowings (69% of total assets). This is a very risk form of funding, especially
should the debt ratio forgo above 75% as is likely to occur according to current trends in
the next few months as all of these non-current liabilities would become current. The
majority of the remaining liabilities and equities are made up of reserves (the asset

revaluation) (19%). There is no guarantee that these reserves will be able to be converted
back into cash at the amounts reported in the balance sheet.
v. Market performance
The market performance appears strong, with the earnings per share increasing
significantly as the profit improves. A dividend payout ratio exceeding 100% indicates
that all profits are going towards paying dividends. This is characteristic of the company
withdrawing all of its profits from its operations. Despite the low price earnings ratio, the
share price that the company is asking for is unreasonable as the company is funded
mostly by debt, and these debts will have repaid by the new owner of the business.

3. Conclusions
Company Alpha has a falling EBIT, which reflects it poor profitability ratio, due to poor
management of expenses. In contrast, Company Beta shows an exponential rise in its
EBIT which at first glance seems profitable; however, further analysis shows company
beta follows a debt focused model that relies heavily on loans to fund its business model.
Whereas, company Alpha is funded mostly though equitable funding, with funding
coming from retained profits and early contributions. With company Beta approaching its
75% debt limit, it is in an extremely risky position where the company is unable to pay
off its current debts.
There has been a decrease in dividends and almost fully matured loans for company
Alpha. Whereas for company beta, the amount of dividends paid are being increased, and
more loans are being taken out with minimal repayments.

4. Recommendations
The Big Five recommends that you invest in Company Alpha, as it is much lower risk as
it is equitably funded compared to the high risk and high debt business model of
Company Beta. The large equity reserves indicate a stable gearing and which is favorable
for a takeover. Furthermore, it is ready for take over because there are less shareholders
than company beta, therefore there is more power for the controlling business to make
decisions. Although Company Alpha shows a falling EBIT, it is the only concern of this
company. This can be easily improved by better management of expenses; primarily
better allocation of its resources and the change in sales should better reflect the change
in expenses. The almost matured loans means that a takeover of company Alpha means
that the repayment amounts are comparatively low when looking at company Beta.
Furthermore, there is potential for greater markup in sale of stock and there is a growth in
regular customer base.

Appendix A
i. Company Alpha
Year
Sales Revenue
Cost of sales
Gross profit

$2,012
$14,831
$11,372
$3,459

$2,011
$14,347
$10,925
$3,422

$2,010
$13,776
$10,430
$3,346

$2,009
$13,397
$10,113
$3,284

$2,008
$13,341
$10,021
$3,320

Expenses
Administrative
Depreciation
Marketing
Occupancy/Insurance expenses
Employee Benefits

$212
$107
$349
$760
$1,188

$205
$138
$273
$730
$1,086

$199
$121
$219
$716
$930

$190
$167
$169
$688
$855

$184
$164
$135
$653
$884

Total expenses

$2,616

$2,432

$2,185

$2,069

$2,020

$843

$990

$1,161

$1,215

$1,300

$10
$93

$10
$100

$10
$111

$9
$114

$9
$129

Profit Before Tax

$760

$900

$1,060

$1,110

$1,180

Income tax

$228

$270

$318

$333

$354

Net Profit After Tax

$532

$630

$742

$777

$826

Earnings Before Interest and Tax

Finance income
Finance costs

Year
Sales Revenue
Cost of sales
Gross profit

2012
100.00%
76.68%
23.32%

2011
100.00%
76.15%
23.85%

1.43%
0.72%
2.35%
5.12%
8.01%

1.43%
0.96%
1.90%
5.09%
7.57%

1.44%
0.88%
1.59%
5.20%
6.75%

1.42%
1.25%
1.26%
5.14%
6.38%

1.38%
1.23%
1.01%
4.89%
6.63%

17.64%

16.95%

15.86%

15.44%

15.14%

EBIT

5.68%

6.90%

8.43%

9.07%

9.74%

Finance income
finance costs

0.07%
0.63%

0.07%
0.70%

0.07%
0.81%

0.07%
0.85%

0.07%
0.97%

profit before tax

5.12%

6.27%

7.69%

8.29%

8.84%

income tax

1.54%

1.88%

2.31%

2.49%

2.65%

profit after tax

3.59%

4.39%

5.39%

5.80%

6.19%

Expenses
Administrative
Depreciation
Sales and Marketing
Occupancy expenses
Employee Benefits
Total expenses

2010
2009
100.00% 100.00%
75.71% 75.49%
24.29% 24.51%

2008
100.00%
75.11%
24.89%

Year
Sales Revenue
Cost of sales
Gross profit

2012
2011
2010
2009
2008
111.17% 107.54% 103.26% 100.42% 100.00%
113.48% 109.02% 104.08% 100.92% 100.00%
104.19% 103.07% 100.78% 98.92% 100.00%

Expenses
Administrative
Depreciation
Sales and Marketing
Occupancy expenses
Wages

115.22%
65.24%
258.52%
116.39%
134.39%

111.41%
84.15%
202.22%
111.79%
122.85%

108.15%
73.78%
162.22%
109.65%
105.20%

103.26%
101.83%
125.19%
105.36%
96.72%

100.00%
100.00%
100.00%
100.00%
100.00%

Total expenses

129.50%

120.40%

108.17% 102.43%

100.00%

64.85%

76.15%

EBIT

89.31%

93.46% 100.00%

111.11%
72.09%

111.11%
77.52%

profit before tax

64.41%

76.27%

89.83%

94.07% 100.00%

income tax

64.41%

76.27%

89.83%

94.07%

profit after tax

64.41%

76.27%

89.83%

94.07% 100.00%

finance costs

111.11% 100.00%
86.05% 88.37%

100.00%
100.00%

100.00%

Year
Current Assets
Cash and cash equivalents
Trade and other receivables (net)
Inventories
Other assets
Total Current Assets

2012

2011

2010

2009

2008

$183
$130.0
$570
$44
$927

$194
$121.0
$527
$43
$885

$204
$93.0
$493
$42
$832

$234
$87.0
$471
$40
$832

$254
$67.0
$441
$37
$799

Non Current Assets

Property, Plant and Equipment (net)

$2,422

$2,487

$2,578

$2,671

$2,800

Total Non Current Assets

Total Assets

$2,422
$3,349

$2,487
$3,372

$2,578
$3,410

$2,671
$3,503

$2,800
$3,599

Current Liabilities
Trade and other payables
Interest-bearing loans and borrowings
Income Tax Payable
Provisions
Total Current Liabilities

$413
$119
$32.0
$21
$585

$341
$83
$67.0
$20
$511

$304
$57
$37.0
$19
$417

$293
$43
$46.0
$17
$399

$271
$37
$28.0
$16
$352

Non Current Liabilities

Interest-bearing loans and borrowings
Provisions
Total Non Current Liabilities
Total Liabilities

$8
$142
$150
$735

$127
$138
$265
$776

$210
$134
$344
$761

$267
$126
$393
$792

$310
$112
$422
$774

$2,614

$2,596

$2,649

$2,711

$2,825

Net Assets

Equity
Contributed equity
Reserves
Retained profits
Total Equity

$1,000
$840
$774
$2,614.
0

$1,000
$720
$876
$2,596.
0

$1,000
$600
$1,049
$2,649.
0

$1,000
$480
$1,231
$2,711.
0

Dividends
Opening Retained Profit
Add Profit
reserve transfer
Available
less dividends
Closing retained profit

$876
$532
-$120
$1,288
$514
$774

$1,049
$630
-$120
$1,559
$683
$876

$1,231
$742
-$120
$1,853
$804
$1,049

$1,465
$777
-$120
$2,122
$891
$1,231

$1,000
$360
$1,465
$2,825.
0

Year
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total Current Assets

2012

2011

2010

2009

2008

5.46%
3.88%
17.02%
1.31%
27.68%

5.75%
3.59%
15.63%
1.28%
26.25%

5.98%
2.73%
14.46%
1.23%
24.40%

6.68%
2.48%
13.45%
1.14%
23.75%

7.06%
1.86%
12.25%
1.03%
22.20%

Non Current Assets

Property, Plant and Equipment (net)

0.00%
72.32%

0.00%
73.75%

0.00%
75.60%

0.00%
76.25%

0.00%
77.80%

72.32%
100.00%

73.75%
100.00%

75.60%
100.00%

76.25%
100.00%

77.80%
100.00%

Current Liabilities
Trade and other payables
Interest-bearing loans and borrowings
Income Tax Payable
Provisions
Total Current Liabilities

12.33%
3.55%
0.96%
0.63%
17.47%

10.11%
2.46%
1.99%
0.59%
15.15%

8.91%
1.67%
1.09%
0.56%
12.23%

8.36%
1.23%
1.31%
0.49%
11.39%

7.53%
1.03%
0.78%
0.44%
9.78%

Non Current Liabilities

Interest-bearing loans and borrowings
Provisions
Total Non Current Liabilities
Total Liabilities

0.24%
4.24%
4.48%
21.95%

3.77%
4.09%
7.86%
23.01%

6.16%
3.93%
10.09%
22.32%

7.62%
3.60%
11.22%
22.61%

8.61%
3.11%
11.73%
21.51%

Net Assets

78.05%

76.99%

77.68%

77.39%

78.49%

Equity
Contributed equity
Reserves
Retained profits
Total Equity

29.86%
25.08%
23.11%
78.05%

29.66%
21.35%
25.98%
76.99%

29.33%
17.60%
30.76%
77.68%

28.55%
13.70%
35.14%
77.39%

27.79%
10.00%
40.71%
78.49%

Total Non Current Assets

Total Assets

Year
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total Current Assets

2012

2011

2010

2009

2008

72.05%
194.03%
129.25%
118.92%
116.02%

76.38%
180.60%
119.50%
116.22%
110.76%

80.31%
138.81%
111.79%
113.51%
104.13%

92.13%
129.85%
106.80%
108.11%
104.13%

100.00%
100.00%
100.00%
100.00%
100.00%

Non Current Assets

Property, Plant and Equipment (net)

86.50%

88.82%

92.07%

95.39%

100.00%

Total Non Current Assets

Total Assets

86.50%
93.05%

88.82%
93.69%

92.07%
94.75%

95.39%
97.33%

100.00%
100.00%

Current Liabilities
Trade and other payables
Interest-bearing loans and borrowings
Income Tax Payable
Provisions
Total Current Liabilities

152.40%
321.62%
114.29%
131.25%
166.19%

125.83%
224.32%
239.29%
125.00%
145.17%

112.18%
154.05%
132.14%
118.75%
118.47%

108.12%
116.22%
164.29%
106.25%
113.35%

100.00%
100.00%
100.00%
100.00%
100.00%

Non Current Liabilities

Interest-bearing loans and borrowings
Provisions
Total Non Current Liabilities
Total Liabilities

2.58%
126.79%
35.55%
94.96%

40.97%
123.21%
62.80%
100.26%

67.74%
119.64%
81.52%
98.32%

86.13%
112.50%
93.13%
102.33%

100.00%
100.00%
100.00%
100.00%

92.53%

91.89%

93.77%

95.96%

100.00%

100.00%
233.33%
52.83%
92.53%

100.00%
200.00%
59.80%
91.89%

100.00%
166.67%
71.60%
93.77%

100.00%
133.33%
84.03%
95.96%

100.00%
100.00%
100.00%
100.00%

Net Assets
Equity
Contributed equity
Reserves
Retained profits
Total Equity

2012
25.09%
20.42%
23.32%
5.68%

2011
29.19%
24.02%
23.85%
6.90%

2010
33.59%
27.69%
24.29%
8.43%

1.58
0.54

1.73
0.62

2.00
0.71

Acc Rec Turn

Av collection period
Inventory Turnover
Av time to sell
Asset Turnover

118.18
3.09
20.73
17.60
4.41

134.08
2.72
21.42
17.04
4.23

153.07
2.38
21.64
16.87
3.99

173.99
2.10
22.18
16.46
3.77

Debt
Equity

21.95%
78.05%

23.01%
76.99%

22.32%
77.68%

22.61%
77.39%

0.28

0.30

0.29

10.16

11.00

11.50

ROA
ROE
GPM
PM(EBIT)
Current Ratio
Quick Ratio

Debt to Equity
Interest Coverage
Net tangible asset backing per
share
Earnings per share
Dividends per share
Dividend pay out ratio
Price earnings ratio
Share Price

2009
34.22%
28.07%
24.51%
9.07%
2.09 :1
0.80 :1

times or
0.29 %
times or
11.57 %

$2.61
$2.60
$2.65
$2.71
$0.53
$0.63
$0.74
$0.78
$0.51
$0.68
$0.80
$0.89
96.62% 108.41% 108.36% 114.67%
9.40
share price unknown
$5.00

times
days
times
days
times

share price unknown

ii. Company Beta

Year
Sales Revenue
Cost of sales
Gross Sales profit

$2,012
$11,181
$5,860
$5,321

$2,011
$6,284
$3,284
$3,000

$2,010
$3,246
$1,674
$1,572

$2,009
$1,641
$843
$798

$2,008
$814
$412
$402

Veterinary Services
Cost of Veterinary Services
Gross Veterinary Profit

$5,891
$2,930
$2,961

$3,292
$1,663
$1,629

$1,694
$852
$842

$855
$427
$428

$420
$208
$212

Gross Profit

$8,282

$4,629

$2,414

$1,226

$614

Loss on sale of NCA

$250

Expenses
Administrative
Depreciation
Sales and Marketing
Occupancy/Insurance expenses
Employee Costs

$781
$167
$951
$971
$2,699

$403
$94
$534
$525
$1,435

$198
$45
$257
$231
$658

$68
$21
$121
$131
$250

$31
$8
$59
$47
$121

Total expenses

$5,569

$2,991

$1,389

$591

$266

Earnings Before Interest and Tax

$2,463

$1,638

$1,025

$635

$348

$35
$608

$24
$352

$17
$162

$8
$73

$1
$29

Profit Before Tax

$1,890

$1,310

$880

$570

$320

Income tax

$567.0

$393.0

$264.0

$171.0

$96.0

Net Profit After Tax

$1,323

$917

$616

$399

$224

Finance income
Finance costs

Year
Total Revenue
Sales Revenue
Cost of sales
Gross Sales profit

2012
100.00%
65.49%
34.33%
31.17%

2011
2010
100.00% 100.00%
65.62% 65.71%
34.29% 33.89%
31.33% 31.82%

2009
100.00%
65.75%
33.77%
31.97%

2008
100.00%
65.96%
33.39%
32.58%

Veterinary Services
Cost of Veterinary Services
Gross Veterinary Profit

34.51%
17.16%
17.34%

34.38%
17.37%
17.01%

34.29%
17.25%
17.04%

34.25%
17.11%
17.15%

34.04%
16.86%
17.18%

Gross Profit

48.51%

48.34%

48.87%

49.12%

49.76%

Loss on sale of NCA

1.46%

0.00%

0.00%

0.00%

0.00%

Expenses
Administrative
Depreciation
Sales and Marketing
Occupancy expenses
Wages

4.57%
0.98%
5.57%
5.69%
15.81%

4.21%
0.98%
5.58%
5.48%
14.99%

4.01%
0.91%
5.20%
4.68%
13.32%

2.72%
0.84%
4.85%
5.25%
10.02%

2.51%
0.65%
4.78%
3.81%
9.81%

Total expenses

32.62%

31.23%

28.12%

23.68%

21.56%

EBIT

14.43%

17.11%

20.75%

25.44%

28.20%

Finance income
finance costs

0.21%
3.56%

0.25%
3.68%

0.34%
3.28%

0.32%
2.92%

0.08%
2.35%

profit before tax

11.07%

13.68%

17.81%

22.84%

25.93%

income tax

3.32%

4.10%

5.34%

6.85%

7.78%

profit after tax

7.75%

9.58%

12.47%

15.99%

18.15%

Year
Sales Revenue
Cost of sales
Gross Sales profit

2012
1373.59%
1422.33%
1323.63%

2011
2010
771.99% 398.77%
797.09% 406.31%
746.27% 391.04%

2009
201.60%
204.61%
198.51%

2008
100.00%
100.00%
100.00%

Veterinary Services
Cost of Veterinary Services
Gross Veterinary Profit

1402.62%
1408.65%
1396.70%

783.81% 403.33%
799.52% 409.62%
768.40% 397.17%

203.57%
205.29%
201.89%

100.00%
100.00%
100.00%

Gross Profit

1348.86%

753.91% 393.16%

199.67%

100.00%

Expenses
Administrative
Depreciation
Sales and Marketing
Occupancy expenses
Wages

2519.35%
2087.50%
1611.86%
2065.96%
2230.58%

638.71%
562.50%
435.59%
491.49%
543.80%

219.35%
262.50%
205.08%
278.72%
206.61%

100.00%
100.00%
100.00%
100.00%
100.00%

Total expenses

2093.61% 1124.44% 522.18%

222.18%

100.00%

470.69% 294.54%

182.47%

100.00%

2096.55% 1213.79% 558.62%

251.72%

100.00%

EBIT
finance costs

707.76%

1300.00%
1175.00%
905.08%
1117.02%
1185.95%

profit before tax

590.63%

409.38% 275.00%

178.13%

100.00%

income tax

590.63%

409.38% 275.00%

178.13%

100.00%

profit after tax

590.63%

409.38% 275.00%

178.13%

100.00%

Year
Current Assets
Cash and cash equivalents
Trade and other receivables (net)
Inventories
Other assets
Total Current Assets

2012

2011

2010

2009

2008

$412
$63
$1,663
$187
$2,325

$242
$38
$960
$95
$1,335

$91
$21
$419
$48
$579

$37
$8
$205
$21
$271

$19
$3
$83
$11
$116

Non Current Assets

Plant and Equipment (net)
Intangible Assets

$14,254
$1,000

$9,193
$770

$6,178
$520

$3,143
$350

$1,454
$200

Total Non Current Assets

Total Assets

$15,254
$17,579

$9,963
$11,298

$6,698
$7,277

$3,493
$3,764

$1,654
$1,770

Current Liabilities
Trade and other payables
Income Tax Payable
Provisions
Interest-bearing loans and borrowings
Total Current Liabilities

$619
$254.0
$67
$23
$963

$384
$142.0
$40
$12
$578

$148
$98.0
$22
$8
$276

$77
$50.0
$15
$5
$147

$36
$27.0
$9
$3
$75

Non Current Liabilities

Interest-bearing loans and borrowings
Provisions
Total Non Current Liabilities
Total Liabilities

$12,163
$51
$12,214
$13,177

$7,687
$31
$7,718
$8,296

$4,976
$18
$4,994
$5,270

$2,142
$12
$2,154
$2,301

$584
$10
$594
$669

Net Assets

$4,402

$3,002

$2,007

$1,463

$1,101

Equity
Contributed equity
Reserves
Retained profits
Total Equity

$1,000
$3,360
$42
$4,402

$1,000
$1,950
$52
$3,002

$1,000
$940
$67
$2,007

$1,000
$380
$83
$1,463

$1,000
$10
$91
$1,101

Dividends
Opening Retained Profit
Add Profit
Reserve transfers
Available
less dividends
Closing retained profit

$52
$1,323
$0
$1,375
$1,333
$42

$67
$917
$0
$984
$932
$52

$83
$616
$0
$699
$632
$67

$91
$399
$0
$490
$407
$83

Year
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total Current Assets

2012

2011

2010

2009

2008

2.34%
0.36%
9.46%
1.06%
13.23%

2.14%
0.34%
8.50%
0.84%
11.82%

1.25%
0.29%
5.76%
0.66%
7.96%

0.98%
0.21%
5.45%
0.56%
7.20%

1.07%
0.17%
4.69%
0.62%
6.55%

Non Current Assets

Property, Plant and Equipment (net)
Intangible Assets

81.09%
5.69%

81.37%
6.82%

84.90%
7.15%

83.50%
9.30%

82.15%
11.30%

Total Non Current Assets

Total Assets

86.77%
100.00%

88.18%
100.00%

92.04%
100.00%

92.80%
100.00%

93.45%
100.00%

Current Liabilities
Trade and other payables
Income Tax Payable
Provisions

3.52%
1.44%
0.38%

3.40%
1.26%
0.35%

2.03%
1.35%
0.30%

2.05%
1.33%
0.40%

2.03%
1.53%
0.51%

Total Current Liabilities

5.48%

5.12%

3.79%

3.91%

4.24%

69.18%
0.29%
69.48%
74.96%

68.03%
0.27%
68.31%
73.43%

68.35%
0.25%
68.63%
72.42%

56.91%
0.32%
57.23%
61.13%

32.99%
0.56%
33.56%
37.80%

Non Current Liabilities

Interest-bearing loans and borrowings
Provisions
Total Non Current Liabilities
Total Liabilities

Net Assets

25.04%

26.57%

27.58%

38.87%

62.20%

Equity
Contributed equity
Reserves
Retained profits
Total Equity

5.69%
19.11%
0.24%
25.04%

8.85%
17.26%
0.46%
26.57%

13.74%
12.92%
0.92%
27.58%

26.57%
10.10%
2.21%
38.87%

56.50%
0.56%
5.14%
62.20%

Year
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total Current Assets

2012

2011

2010

2009

2008

600.00%
2100.00%
2003.61%
1700.00%
1747.41%

436.84%
1266.67%
1156.63%
863.64%
1013.79%

321.05%
700.00%
504.82%
436.36%
473.28%

194.74%
266.67%
246.99%
190.91%
233.62%

100.00%
100.00%
100.00%
100.00%
100.00%

Non Current Assets

Property, Plant and Equipment (net)
Intangible Assets

1000.96%
500.00%

643.33%
385.00%

427.17%
260.00%

216.16%
175.00%

100.00%
100.00%

Total Non Current Assets

Total Assets

940.39%
993.28%

612.09%
638.42%

406.95%
411.30%

211.19%
212.66%

100.00%
100.00%

Current Liabilities
Trade and other payables
Income Tax Payable
Provisions

1719.44%
940.74%
744.44%

1066.67%
525.93%
444.44%

411.11%
362.96%
244.44%

213.89%
185.19%
166.67%

100.00%
100.00%
100.00%

Total Current Liabilities

1284.00%

770.67%

368.00%

196.00%

100.00%

Non Current Liabilities

Interest-bearing loans and borrowings
Provisions
Total Non Current Liabilities
Total Liabilities

2082.71%
510.00%
2056.23%
1969.66%

1316.27%
310.00%
1299.33%
1240.06%

852.05%
180.00%
840.74%
787.74%

366.78%
120.00%
362.63%
343.95%

100.00%
100.00%
100.00%
100.00%

400.00%

272.84%

182.56%

132.88%

100.00%

Net Assets

Equity
Contributed equity
Reserves
Retained profits
Total Equity

100.00%
100.00%
33600.00% 19500.00%
48.35%
59.34%
400.00%
272.84%

ROA
ROE
GPM
PM(EBIT)

2012
17.06%
35.74%
48.51%
14.43%

2011
17.64%
36.61%
48.34%
17.11%

2010
18.57%
35.50%
48.87%
20.75%

2.41
0.49

2.31
0.48

2.10
0.41

Acc Rec Turn (not needed)

Av collection period
Inventory Turnover (not needed)
Av time to sell
Asset Turnover

116.65
3.13
4.47
81.69
1.18

111.59
3.27
4.76
76.63
1.03

116.83
3.12
5.37
68.03
0.89

155.45
2.35
5.85
62.35
0.90

Debt
Equity
Debt to Equity
Interest Coverage

74.96%
25.04%
2.99
4.30

73.43%
26.57%
2.76
4.99

72.42%
27.58%
2.63
7.07

61.13%
38.87%
1.57 times
9.77 times

Current Ratio
Quick Ratio

Net tangible asset backing per share

Earnings per share
Dividends per share
Dividend pay out ratio
Price earnings ratio

$3.40
$1.32
$1.33
101%
3.78

Share Price

$5.00

100.00%
9400.00%
76.92%
182.56%

100.00%
3800.00%
91.21%
132.88%

2009
22.95%
31.12%
49.12%
25.44%
1.84 :1
0.31 :1

$2.23
$1.49
$1.11
$0.92
$0.62
$0.40
$0.93
$0.63
$0.41
102%
103%
102%
share price unknown
share price unknown

times
days
times
days
times

100.00%
100.00%
100.00%
100.00%