ANALYSIS

Nufarm Ltd. Financial Analysis

Nufarm Ltd.Financial Analysis

Executive Summary

Financial activities of the company are not satisfactory. It affects overall efficiency of an organization. Elements of financial statements do not attract investors to invest their capital in the company. Fascinating factors for investors do not show fair picture. The share value of the company does not appeal the financier to buy the shares of the company. Net income is not up to the mark and the trend of company's net income does not tempting the others to buy the share of the company. It is natural that every capitalist spend his money in such business that he should get a good return like annually dividend, bonus shares etc from the company. Increasing trend of long term loan created doubts and uncertainties in investors mind. Moreover, further issue of common shares in the stock market has decreased the market value of share. Abundant circulation of company shares has decreased the worth in global stock market. It is normal practice of a company when it faces loss, will issue more shares in share market to compensate the losses. Consequently, it will disturb the financial operation and performance of the company. External factors like competitors, financial recession, global warming, natural calamities and changes in economic and legislative systems of the countries have made the situation for the company production more iniquitous. There is another side of the coin; agricultural sector is a life blood of every country. Therefore, it has a broad scope and space available for all chemical industries in the global market. The only need is to explore the sick segments and components of the company though an issue related to finance, operation or marketing and company should try their level best to cure the unresolved concerns in every aspect.

Introduction

This assessment shows the business challenges which are facing the Nufarm ltd. It is financial assessment of Nufarm ltd. in few selective areas. Here, this assignment shows the financial strength and weak areas of the company. However, overall performance of the company is not pleasing the stock market for options. Financial statements of the company have also failed to capture the attention of the investors. The financial ratios portray unpleasant performance of the company. (See Appendix) Market price of share, earning per share, net profit, and dividend payout, price earning ratio, net asset value and stock value of the company wreck the trust of investors. The main issues that push the industry in melancholy are decrease in net income, rise in total liabilities, issue of shares in the market and other operational and marketing issues. The company's liquidity is not up to the mark as it is considered an essential element for the company growth and payment for short term liabilities. It has a positive sign for the company that its current liabilities have decreased due to mainly reduction in the short term debt in 2012 by repayment huge debt amount. However, an increase in the long term debt has compensated the positive ...