Fletcher Building Limited Assignment Example | Topics and Well Written Essays - 2000 words

Fletcher Building Limited - Assignment Example This will allow them to make appropriate decisions about considering making Fletcher Building Limited a choice investment opportunity. The core of this analysis is to determine the performance of the company and submit a report of the same to the Board of Directors of NZ Saver Limited detailing the investment prospects and stability of the company. In this report, I wish to do the analysis and interpretation of the company basing my comments on the following aspects of the company: Stability of the company (Leverage and Liquidity ratios) Financial stability (Long term) Profitability ratios Cash flow Shareholder’s view (Market efficiency measures) These analyses have been based on the financial report of Fletcher Building Limited for the year ending 30 June, 2012. However, this has been compared with the financial report of the company for the year 2011 so as to bring variability in the report. To this regard, NZ Saver Limited is recorded as a superannuation company that is reg istered by the New Zealand Stock Exchange. Its main objective is to provide its clients with the maximum total return through the investments it seeks to make in the companies that are listed in the New Zealand or Australian share market. This report will enable the company objectively determine whether it is justified for it to invest in Fletcher Building Limited. ... This company was formerly the largest and wealthy business and multinational company in New Zealand. Currently, it can be estimated that the company has an estimated 19, 200 employees on the global scale and has around 50 businesses it operates under its brand name of Fletcher Building Limited. Generally, this company is the largest known supplier of building materials in Australia. Basing on the company’s sustainability report of March 2013, which addressed key issues of future growth and sustainability of the company in this competitive global economy, its CEO claimed that the main objective of the Fletcher Building Limited is to always ensure that it is more productive than any other company. Consequently, the company aims at becoming the most innovative company and provider of better building solutions in the entire Australian market. Clearly, one of the steps that the company took is to be enlisted in the stock market thus, enabling the buying of its stock to generate rev enue for greater expansive projects to be implemented (Payne & Frow, 2013). It is also mentioned in the report that the company shall also focus on the need to have environmental problems curtailed. This will be made possible by ensuring that it focuses more on the environment by striving to reduce any environmental footprints of its products. Consequently, it shall endeavor to maintain health and safety by reducing its TRIFR by about 85 percent from 60 percent to less than 9. Additionally, the company seeks to focus more on governance and quality standards in the future through community sponsorship and support. Analysis and Interpretation Profitability report of Fletcher Building Limited In analyzing the profitability ratios of the company this report