Business Report on National Australia Bank-Accounting Assignment Sample

QUESTION

 

Write a Business Report on National Australia Bank

1200 Words

References with Intext APA Style

 

 

ANSWER

2

Table of Contents

 

Part-1 BRIEF DESCRIPTION OF THE COMPANY	Page 2 to 3
Part-1 ASX AND THE SHAREMARKET	Page 3 to 5
Part-2 Identification of key financial data	Page 6
Part-2 Ratio Analysis	Page 7 to 8
Bibliography	Page 9
Self-Evaluation	Page 10 to 11

 

Part-A

Name of the company you have purchased the shares	National Bank Australia (NAB)
Why did you choose this company?	National Bank Australia (NAB) is Australia’s one of the leading banking company, among four largest financial institution in Australia and give dividend regularly.
What do you know about the company and its business	Established in 1858, it got merged in 1982 with the Commercial Banking Company of Sydney which is presently National Australia Bank, it is indulged in serving commercial Business: • Bank accounts, • Invoicing, • saving accounts, • credit cards, • Business loans, • Merchant services, • Superannuation, • FX & International financial needs.
Based on the closing share price, how many shares have you been able to purchase with $5,000.*Show Calculations	Closing price on 18/2/19= 24.220 AUD (ASX, 2018)
What is the total amount of your investment on Monday 18th February 2019	AUD 5000
What is the latest/last Dividend Paid, both date of payment and amount paid per share	Last dividend paid by NAB was on 14th December 2018 which was a final dividend of 99 cents.
What is the name of Chief Executive Officer [or Managing Director]? *Supporting documentation needed	Philip Chronican
What is the Salary or Number of Shares held by Chief Executive Officer	Total salary of CEO =$ 4.91 million
	Number of shares held=31,000
Profit or Loss after Tax for the full financial year – consolidated figures	Net profit attributable to owners -$5,466 m
Size of the business by Total Assets	$806510 billion
Number of Employees.	33743 full time employees are working in NAB as per annual report for the year 2018 (NAB, 2018)
What is the closing ASX200 index on Monday 18th Feb 2019	$ 67.7 (Finance, 2018)
What does the ASX200 represent?	ASX- Australian Securities Exchange based in Sydney is the primary exchange for Australian stocks. ASX 200 is the benchmark of Australian equity market which was created in year 2000 comprising of 200 largest trading public companies in Australia. This index is maintained by Standards and Poor’s.
Is your company part of the ASX200?	Yes
From an investor’s point of view, briefly explain what a share is and what is one advantage and one disadvantage of being a shareholder?	A share is a part in ownership of a company. The holder of a share is entitled to all the losses and profits made by the company
	Advantage of being a shareholder is direct impact of the performance of the company over the investment made.
	One disadvantage can be among no fixed percentage on return is received and higher risk.
Name 2 other international stock exchanges indices. Both the name of the country and the index name is required.	EURO STOXX 50 -EUROPE
	DAX – Frankfurt, Germany
In relation to investing in shares, briefly explain:-
What does the term Return on Investment mean,	Return on Investment (ROI) is a performance measure which evaluates the efficiency of an investment made with respect to return fetched on the investment.
What does it represent?	Return on Investment is the measurement of the percentage of return generated on an invested amount, which helps in making financial decisions.
	ROI = (Net Profit / Cost of Investment) x 100
Its significance	ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. and help in taking decision of whether to purchase the share or not
When is the ratio used	·         It is the simplest measurement alternative from an investor
	·         It is used to evaluate different investment perspectives and choose
	·         It calculates and compares the percentage of returns with the returns of previous periods
	·         It is an efficient tool for monitoring the investment
Briefly explain the tax implications of being a shareholder, both from an income point of view and capital gains tax point of view.	Income point of view
	Companies can decide the ratio of the dividend paid which will attract franking credits, which can vary from the dividend fully being franked or being entirely unfranked. Franking credit is the tax paid by the company on dividends.
	The grossed up dividend i.e. dividend plus franking credits are included in the income of the taxpayers. After the computation of total tax on the income the franking credits are reduced from the total tax payable.
	Capital gain point of view
	Selling of a capital asset on profit, say land, will attract capital gain tax. Capital gain is nothing but difference between sale value and cost of acquisition, if the difference is positive it is a capital gain else capital loss. The capital gain or loss is adjusted with the total income of the assesse and tax is imputed over it.
	If a share is bought at a lower price and sold at a higher price the gain earned is capital gain.

(NAB, 2018)

(ASX, 2018)

(Finance, 2018)

 

PART-B

Revenue	$28543 m
Interest Expense	$15038m
EBIT	$ 23438 m
Net profit before tax	$ 8400 M
Net profit after tax	$ 5557 M
Current Assets	$ 786718 M
Total assets	$ 806,510 M
Current Liabilities	$ 5,96,846 M
Total Liabilities	$ 7,53,798 M
Total Equity	$ 52,712 M

 

 

Ratio Analysis	Definition	Formula	Current year	Previous Year	Comment
Profitability	Return on average ordinary equity	Net profit attributable to equity share holders/ Average Equity	5554/AVERAGE(52712,51317)	5285/50529.5	Return on equity is increasing making investment an attractive option and comparing with other banks profitability looks a bit low (comparing with western bank).
			10.68%	10.46%
Stability	Debt-to-equity ratio	(Net debt) / (Shareholders’ equity	209664/ 52712		Company is getting stable than the previous year, The debt equity ratio is bit higher than the industry standards i.e. 2 to 2.5.
			3.977	3.05
Liquidity	Current asset ratio	current asset/current liability	786718/596846		Company is liquid as the current assets are higher than current liabilities
			1.32	1.28
Capital Structure	Average total equity to average total assets	Average total equity /average total assets	6.52%	6.27%	Company has financed more assets through equity than in previous year which is making the company less risky. The competitor like western bank has this ratio as 7%.
						Market performance ratio	Price to earnings Ratio	market value per share/Earning per share	$ 24.220/201.33 Cents	$31.50/194.7 Cents	Company is now more stable in pricing then the previous year as the PE ratio has gone down. The market PE stands around 12 which makes the company a good investment
12.03	16.78

 

(NAB, 2018)

 

Bibliography

Self-Evaluation

BRIEF DESCRIPTION OF THE COMPANY (23 marks)
· Name of your company and ASX code	2 marks………	2
· Why did you chose this company	2 marks………..	2
· What do you know about this company	3 marks…………	3
· Number of shares purchased	2 marks…………	2
· Total amount of your investment	2 marks…………	2
· Latest dividend paid	2 marks………..	2
· Name of CEO	2 marks………..	2
· Salary and number of shares	2 marks…………	2
· Profit/Loss	2 marks…………	2
· Total of Assets	2 marks…………	2
· Number of Employees	2 marks…………	2
ASX AND THE SHAREMARKET (12 marks)
· What is the closing ASX200 index on the 18th February?	1 mark…………	1
· What does the ASX200 represent?	1 mark…………	1
· Is your company part of the ASX200?	1 mark…………	1
· One advantage and one disadvantage of being a shareholder?	2 marks…………	2
· Name 2 other international stock exchanges indices.	2 marks…………	2
· Briefly explain what does the term Return on Investment means	3 marks…………	3
· Briefly explain the tax implications of being a shareholder	2 marks…………	2
Total	35	35

 

Looking for best Accounting Assignment Help. Whatsapp us at +16469488918 or chat with our chat representative showing on lower right corner or order from here. You can also take help from our Live Assignment helper for any exam or live assignment related assistance.