Home / Questions / the closing adjusted pricefor Bega Cheese Limited BGAAXon the 30 June for each year from 2...
the closing adjusted pricefor Bega Cheese Limited (BGA.AX)on the 30 June for each year from 2015to 2019. If the price on 30 June is not available, use the price from the closest previous trading day, such as 29 June or 28 June.
o the dividendspaid by Bega Cheese Limitedbetween 30 June 2015 and 30 June 2019.
o the closing adjusted pricefor Bellamy’s Australia Limited (BAL.AX)on the 30 June for each year from 2015to 2019. If the price on 30 June is not available, use the price from the closest previous trading day, such as 29 June or 28 June.
o the dividendspaid by Bellamy’s Australia Limitedbetween 30 June 2015 and 30 June 2019.
· Go to the Bega Cheese Limited website and obtain the annual report for the company for the 2019 financial year(http://www.begacheese.com.au/investors/annual-reports)
· Go to Bellamy’s Australia Limited website and obtain the annual report for the company for the 2019 financial year(https://investors.bellamysorganic.com.au/investors/?page=results-and-presentations)
TASKS
1. Calculate the Holding Period Return for each company for each year, for four years, from 30 June 2015 to 30 June 2019. (2 marks)
2. Estimate the Expected Return of each company based on your four-year historical sample of returns. (0.4 mark)
3. Calculate the Total Return to Shareholders of each company over the four-year period from 30 June 2015 to 30 June 2019, using the following formula: (0.6 marks)
4. Compare and contrast the performance of each company over the past four years, based on the change in share prices. (1 marks)
5. Use the information obtained from the 2019 annual reports, calculate for each company the annual growth in Earnings per Share; Net Profit Margin; Asset Turnover Ratio; Leverage Ratio; Return on Equity; Quick Ratio and Net Debt to Equity Ratio for the 2019 financial year. (2.8 marks)
Hint: These ratios have been calculated for you from 2015 to 2018.
|
Bega Cheese Limited (BGA.AX) |
|||||
|
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
Growth in EPS |
-81% |
133% |
380% |
-83% |
|
|
Net Profit Margin |
1% |
2% |
11% |
2% |
|
|
Asset Turnover Ratio |
202% |
210% |
149% |
110% |
|
|
Leverage Ratio |
1.76 |
1.78 |
1.82 |
1.89 |
|
|
Return on Equity |
4% |
9% |
31% |
5% |
|
|
Quick Ratio |
24% |
74% |
244% |
93% |
|
|
Net Debt to Equity Ratio |
19% |
16% |
-45% |
39% |
|
|
Bega Cheese Limited (BGA.AX) |
|||||||
|
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
Income Statement |
Revenue ($'000) |
1,069,392 |
1,112,630 |
1,195,967 |
1,226,663 |
1,252,041 |
|
|
Profit for the period from continuing operations ($'000) |
66,055 |
12,408 |
28,779 |
138,748 |
28,768 |
|
|
|
Diluted earnings per share (cents per share) |
43.2 |
8.1 |
18.9 |
90.8 |
15.6 |
|
|
|
Balance Sheet |
Cash |
28,630 |
10,284 |
9,568 |
475,533 |
21,669 |
|
|
Inventories |
184,167 |
194,889 |
192,398 |
167,898 |
211,210 |
|
|
|
Total Current Assets |
321,541 |
328,589 |
346,274 |
818,472 |
469,031 |
|
|
|
Total Assets |
548,637 |
552,419 |
586,674 |
1,056,260 |
1,215,816 |
|
|
|
Total Current Liabilities |
212,170 |
552,419 |
209,253 |
266,584 |
278,191 |
|
|
|
Short-term Borrowings |
588 |
11,474 |
15,235 |
64 |
121 |
|
|
|
Long-term Borrowings |
20,000 |
57,500 |
47,500 |
215,280 |
266,982 |
|
|
|
Total Equity |
314,388 |
312,666 |
327,838 |
572,674 |
631,991 |
|
|
|
Bellamy's Australia Limited (BAL.AX) |
|||||
|
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
Growth in EPS |
400% |
306% |
-102% |
-4799% |
|
|
Net Profit Margin |
7% |
16% |
0% |
13% |
|
|
Asset Turnover Ratio |
264% |
217% |
160% |
150% |
|
|
Leverage Ratio |
1.47 |
1.63 |
1.72 |
1.46 |
|
|
Return on Equity |
28% |
58% |
-1% |
29% |
|
|
Quick Ratio |
232% |
118% |
87% |
190% |
|
|
Net Debt to Equity Ratio |
-65% |
-39% |
9% |
-42% |
|
|
Bellamy's Australia Limited (BAL.AX) |
|||||||
|
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
Income Statement |
Revenue ($'000) |
48,896 |
125,302 |
234,083 |
240,182 |
328,704 |
|
|
Profit for the period from continuing operations ($'000) |
1,266 |
9,073 |
38,328 |
-809 |
42,816 |
|
|
|
Diluted earnings per share (cents per share) |
1.9 |
9.5 |
38.6 |
-0.8 |
37.59 |
|
|
|
Balance Sheet |
Cash |
4,434 |
32,035 |
32,295 |
17,479 |
87,634 |
|
|
Inventories |
7,737 |
17,148 |
67,752 |
93,497 |
90,453 |
|
|
|
Total Current Assets |
21,678 |
70,674 |
139,192 |
150,358 |
230,152 |
|
|
|
Total Assets |
22,790 |
72,170 |
143,501 |
156,641 |
280,813 |
|
|
|
Total Current Liabilities |
6,794 |
23,060 |
60,616 |
65,353 |
73,409 |
|
|
|
Short-term Borrowings |
184 |
108 |
113 |
25,264 |
62 |
|
|
|
Long-term Borrowings |
212 |
130 |
18 |
0 |
0 |
|
|
|
Total Equity |
15,592 |
48,911 |
83,221 |
91,259 |
207,359 |
|
|
6. Compare and contrast the performance of the two companies over the past five years by examining the following ratios. (3.2 marks)
a. Profitability (Growth in EPS and Net Profit Margin)
b. Efficiency (Asset Turnover Ratio)
c. Liquidity (Quick Ratio)
d. Solvency (Leverage Ratio and Net Debt to Equity Ratio)
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