Hi, hi,
I have attached the drafts for assessment 2 below. Please, feel free to take a look at them ! I will upload my final assessment soon. If you want me to review your assessment piece, please let me know by either commenting below or on the Moodle site (blog links or assessment drafts forum), emailing me, or putting a message on my feedback sheet.
Cheers!
When I first came across ratios for Amber Technology, I only understood profitability, efficiency, liquidity and market ratios. I thought they were straightforward.
Profitability ratios – Does the firm have the ability to earn a profit relative to its sales revenue, operating expenses, balance sheet assets and shareholders’ equity? Well, by looking at the ratios, for Amber Technology the general answer would be no. The firm’s PM and RNOA decreased from 0.4% (2016) to -2.3% (2019) and 1.0% (2016) to -4.7% (2019) respectively. This means the firm’s cost of production exceeds its total sales, which represents its inability to control expenses.
Efficiency ratios – How well can the firm use its assets to generate income? Generally, I will say the firm has the ability to use the resources efficiently. Its total ATO has ranged between 225% – 196.5% for the past four years. However, at the same time the firm’s current ATO has been low. It has remained between 2.2% – 2.5%. By looking at this, it is obvious that the firm has been turning its current asserts in the form of sales less number of times, which represents the incapability of the firm to achieve maximum sales with the minimum investment in current assets.
Liquidity ratio – Will its current assets be sufficient to meet the company’s obligations when they are due? The general answer to this will be yes. For the past four years the firm’s current ratio has ranged from 1.3 -1.7. This means that the firm had 1.3-1.7 times more current assets compared to liabilities to cover its debt. However, its quick ratios 1& 2 ranged between 0.7 – 0.6 and 0.1 – 0.1 respectively. This means that the firm may not be able to completely pay off its liabilities in the short term.
Market ratios – Are firm’s shares over-priced or under-priced? It is earning how much it is supposed to earn should from those shares? The general answer to this will be no. Most the firm’s market ratios have equaled zero for the past four years and higher market/book ratio represented that shares/stock was expensive. Evaluating all these ratios got me wondering. What might have happened in the past four years to cause these changes to these ratios?
Well, if you look properly at the discussion above, you will see that I did not discuss two of my firm’s ratios – the financial structure ratios and ratios based on formulated financial statements. I felt like I did not have much idea about them. Therefore, I decided to try to understand them. Here is what I found. Debt/equity ratio – this shows a relative proportion of shareholders equity and debt used to finance firm’s assets. In my firm’s case, its debt/equity ratios are higher (222.4% – 163.2%) which means that the firm has more debts than assets. I may be wrong to say that but digging deeper into the financial statements, its borrowings increased in 2019 (by $882,000), in 2018 (by $333,000) and in 2017 by $859,000.
Please comment and tell me what you think! Ratios based on formulated financial statements – I think these are the ratios I calculated based on the restated financial statements? What are they all about and what do they tell us?
Just decided to put another one up again! I will say that the five-week journey of the TWE audit was challenging, yet satisfying. We held countless meetings to complete the working papers 1-4. And looking back at it, it was worth it. It was the best experience being part of the great team – Jess, Shaina and Kim.
Hi guys, as I have mentioned earlier, I have uploaded my complete draft of the first assessment – steps 3-8. It can be viewed on the Moodle under Assessment Feedback and Blog links Forums as well. The feedback can be given via feedback sheets. If you want me to review your assessment draft, please let me know through email or the Moodle.
Hi guys, I have uploaded my assessment 1 steps 3-5. I have also uploaded to the assessment feedback forum on Moodle. Please read through and leave some feedback. Again, the assessment is still in its first draft format. Watch this space for my complete draft. Cheers!
Hi everyone!
I’d like to introduce you to the company I am working on – Amber Technology. Amber Technology distributes audiovisual solutions in Australia and New Zealand. These audiovisual solutions are used for professional broadcast, media and communications, live sound production, music instruments, sound recording, residential and commercial installations and home entertainment markets (Amber Technology, 2020).
When I first visited its website and read through its financial statements, I wondered what supports this company to stay competitive in the rapidly changing audiovisual industry. However, as I read further, it dawned on me that its exceptional position in the market and industry is supported by experienced team that supports its business operations etc.. I will reflect on this further in my assessment.
I have attached the company’s financial statements for the last four years below. If you’re interested in them, feel free to take a look at them.
Again, I have completed my reflections and reactions for assessment 1 steps 2&6 and decided to put them up on my blog as samples. Please feel free to take a look at them.
Hi guys! Welcome 2 term two of 2020. Below is my exemplar of our first assessment for this unit. Please feel free to take a look at it.
Please feel free to have a look at the knowledge and valuation assessment draft attached below! Wish you all the best in this unit!
Accounting and Thoughts 