FINANCIAL ANALYSIS

Financial Analysis

Financial Analysis

Introduction

This report is about the importance of financial analysis and its implications where we will be looking into the actual financial statements and ratios of Brambles Ltd. Financial analysis is the key for any analyst as it gives the bird eye view of the situation in which the business currently is. It also enables the managers and analysts to analyze their performance in contrast with other companies in the same industries and also with substitute products. In this report, we have taken the financial statements of Brambles ,(appendix) for the last two years, through which we will be analyzing the key Profitability, Efficiency, Short-term solvency and Long term solvency ratios. However, before going into details of it, we first need to know a bit about the industry and overall standing of the company

Company Overview

Brambles Ltd is an Australian company which is listed on ASX. The firm primarily deals with pallet and reusable plastic crate (RPC) along with pooling services, with its operations in more than 54 countries across different regions and continents. The company also owns recall information management solutions business. Recall is a provider of information management solutions. It offers document management solutions, data protection services, and secure destruction services. The document storage solutions include mail room services, data capture, imaging, ReView Powered by OnBase, ReQuest Web, electronic data interchange (EDI), secure document storage, indexing, and records archiving. The data protection services comprise data backup, data recovery and contingency planning services. Its services portfolio includes ReStore, OnPlan, ReSwap, RePlay, protect, Tape Sales Media Destruction and Ensurepac. The secure destruction provides confidential destruction of sensitive documents, other media and items of high intrinsic value. Its services portfolio includes DeStroy, DeStock, and BeSure.

In 2004, Cleanaway (a subsidiary of Brambles) acquired a 49% stake in Stadtreinigung Dresden, the German local waste management, recycling and street cleaning service provider. In the same year, the company split its flagship CHEP pallet business into two businesses: CHEP Americas and CHEP Europe. In the following year, the company acquired AUSDOC, the Melbourne-based information management business, and sold its specialized tank container assets to Groupe Ermewa, its joint venture partner. Later during the same year, the company sold the Northern Hemisphere mill services operations of Brambles Services to Harsco. Towards the end of 2006, the company sold Cleanaway UK to Veolia ES Holdings, a subsidiary of Veolia Environment, a leader in environmental services. In the same year, the company unified its dual-listed companies (DLC) Brambles Industries of Australia and Brambles Industries of US, and created a single holding company, called Brambles Limited. Pastacorp, a manufacturer of pasta products in Europe, selected the TEM (Total Management of Equipment) solution from CHEP France, in 2009. In the same year, the Ferrarelle, a producer of bottled mineral water in Italy, renewed its contract of about 900,000 movements of pallets with CHEP for three more years. In 2010, Recall, launched a new secure data destruction service, Ensurepac, customized for the needs of any type of digital ...