Financial Statement Analysis

29-09-16 cheapnisha 0 comment

Financial Statement Analysis


This report is a financial statement analysis and firm valuation report assessing the financial performance and position of the company, Tassal. Tassal is a Tasmanian Salmon company trading Atlantic salmon. The company has been into operations since 1986 and is a public listed company since 2003 (Tassal, 2016).

In this report, the last five years financials i.e., from 2010 till 2015 are analyzed with the help of financial ratios to assess the financial performance and financial position of the company. The details of the analysis have been discussed in the further sections of the report. The financials are obtained from their website from the Annual reports section and the annual reports of 2015, 2013 and 2011 are downloaded to obtain the data for the years 2010 to 2015. Based on the existing data, forecasts have been projected for the coming five years i.e., from 2016 to 2020. The forecasted projections have been used to value the company and the valuation methods considered in the report include Price multiple method, Discounted Dividend model, Discounted Abnormal Earnings model, Discounted Abnormal Operating Earnings model and the Discounted Free Cash Flow model.

Thus the report has been majorly classified into two sections: Section I which discusses about the financial statements analysis based on the existing financials of the company from 2010 to 2015; Section II which discusses about the valuation models of the company.

Overall it is observed that the company has been doing good business with its profit margin improving from 2010 onwards generating profit margin upto 16% as on 2015. Even the returns of equity and assets are observed to be satisfactory with ROE at 13% and ROA at 8% respectively as on 2015. The company has not given any dividend in the year 2010 and 2011 but then onwards, dividend has been paid to the potential investors of the company. The earnings per share also have been observed to be improving year on year. Regarding financial position of the company, the liquidity and leverage position of the company is quite strong and stable. The assets turnover position is observed to be very less with only 50% of the total assets being realized as sales as on 2015. Rest all aspects of the company are satisfactory and stable (Ready Ratios, 2016).