Analysis Of Ama Group Limited

Analysis of Ama Group Limited.
 

Ama Group Limited focused on the wholesale vehicle aftercare and accessories market, including multiple vehicle panel repair shops, vehicle protection products & accessories, automotive electrical & cable accessories and automotive component remanufacturing.

The Company is a leader in this sector, Operating Specialised Automotive Aftercare and Accessory Companies, each with a commitment to excellence in customer service, cost effective operations, and sector leading brands (Amagroupltd.com. (2016).

1. The current assets of the company are $22880000
2. The non-current assets of the company are $ 60308000
3. The current liabilities of the company are $ 23762000
4. The non-current liabilities of the company are $11056000
5. The total stockholder’s equity of the company are $48370000 

30th June 2014	30th June 2015 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	30th June 2014
Assets	$000	$000	% Change
Current assets
Cash and Cash Equivalent	2,197	2098	5%
Receivable	11,683	8,572	36%
Inventories	7,952	6,595	21%
Other current Assets	1,048	1,121	-7%
Total current assets	22,880	18,386	24.44
Non- current assets
Property, Plant & equipment	8098	2,777	192%
Intangible Assets	48,571	31,013	11%
Deferred Tax Assets	1682	1363	23%
Others	1957	2509
Total non- current assets	60,308	37,662	60.13
Total Assets	83,188	56,048	48.42
Liabilities
Current liabilities
Trade and other payables	10,702	6,506	64%
Borrowings	8,330	5	166500%
Income tax payable	949	1830	-48%
Provision	3,781	2,482	52%
Total current liability	23,762	10,823	119.55
Non-current liabilities
Borrowings	11	16	-31%
Deferred Tax Payable	862	346	149%
Provision	251	235	7%
Others	9931	–
Total non –current liabilities	11,055	597	1751.76
Total liabilities	34,817	11,420	204.88
Equity
Share Capital	74,904	74,904	0%
Accumulated Losses	-26534	-30276	-12%
Total equity	48,370	44,628	8.38

(Annual report, 2015) 

Below table shows brief comparison

(Amounts in $ 000)
Particulars	2015	2014	% increase or -decrease
Total current assets	22,880.00	18,386.00	0.24
Total non-current assets	60,308.00	37,662.00	0.60
Total current liabilities	23,762.00	10,823.00	1.20
Total non-current liabilities	11,056.00	597.00	17.52
Total stockholder’s equity	48,370.00	44,628.00	0.08

On the basis of above table, it has been clear that 

• Current has been increased by 24% since there is slight increase in cash, inventories and other current assets but also there is higher increase in the receivable which on other hand may implies that revenue (Sale) in the year has been increased in comparison to the last or may be due non realization of money in comparison to the year In the stated case revenue has been increased in comparisons to the last year. Hence, increase in the current assets shown good performance of the company.
• Non- current assets has been increased by 60% these refer to the assets which are not expected to be realised within one month. Such high in the noncurrent assets in comparison to the last year is mainly due to the purchase of fixed assets as well intangible assets (Accounting tools, 2015).
• Current liabilities has been increased by 120% which is quite high increase, this is mainly due to the borrowing of higher amount in comparison to the last year. These refer to the liability which is expected to be realised within one month. Since current assets are sufficient with the company it is showing good performance.
• Noncurrent liabilities has been increased by 1751% which is relatively very high and is mainly due to the  “ deferred Consideration” – Key vendors ,this would not affect the financial position of the company .
• There is no change in the equity share capital. However accumulated loss has even decreased by 12% which is good sign for the company. 

At nutshell, it can be stated that taking into consideration the balance sheet, financial position as an overall is showing the positive performance of the company but also three must requirement to reduce the borrowing to the extent possible.

1. The total operating revenues of the company are $ 95774000
2. The Cost of goods sold of the company are $Nil
3. The total expenses before taxes of the company are $ 82931000
4. The non-operating gains and losses of the company are $0
5. The earning per share of the company is $2.72 

Below table shows brief comparison

(Amounts in $ 000)
Particulars	30th June 2015	30th June 2014	% increase or -decrease
Total operating revenues	95,774.00	64,259.00	0.49
Cost of goods sold
Total expenses (before taxes)	82,931.00	87,030.00	-0.05
Any non-operating (or extraordinary) gains and losses	–	–
Earnings per common share	2.72	1.76	0.55

(Annual report, 2015)

Above table clearly implies that

• Revenue has been increased by 49% which is relatively high and redacts excellent performance of the company in regard to the marketing. On the other hand, there is decrease in the total expenses by 5 % which is such huge achievement for any company. This scenario is key role for other also. Revenue has been increased with higher amount and simultaneously there is cost cutting. The company is acting as a role model for other. It clearly implies that strategy used by them is very effective as well people who are involved for application of the same are very efficient. Resultant company has achieved this.
• Also earning per share of the company has been increased by 55 % which shows relatively good performance of the company since it is also one of the factor which provide an overview about the company’s profitability. EPS has been taken as a factor for investment decision by any investor  (Accounting tools, 2015).

In the nutshell, it can be stated that company has been running the business as role model for others.

1. The net cash inflow from operating activities of the company are $ 7820000
2. The net cash inflow from the financing activities of the company are $2927000
3. The net cash inflow from the investing activities of the company are $- 10693000
4. The net increase in the cash during the year of the company are $ 99 

Below table shows brief comparison 

(Amounts in $ 000)
Particulars	2015	2014	% increase or -decrease
Net  cash inflow from operating activities	7,820.00	6,033.00	0.30
Net cash inflow from financing activities	2,972.00	-16,334.00	-1.18
Net cash inflow from investing activities	-10,693.00	-6,726.00	0.59
Net increase in cash during the year	99.00	-17,027.00	-1.01

Above table clearly implies that 

• Cash flow from the operating activities has been increased by 30% which directly implies the cash generated from day to day activities which are essential for the operation of the company; it shows good performance of the company  (Accounting tools, 2015).
• Cash flow from the financing activities has been reduced by 118 % it is also show positive performance since it implies that company has received higher amount from the borrower in comparison to the last year née though repayment is also higher comparatively. dividend paid is more and less same and does not have any major impact on the cash flow from the financing activities
• Cash flow from the Investing activities has been increased by 59% which is negative. Ties are mainly due to purchase of the assets or acquiring of the business. Also payment for intangible assets has been made. 

In the nutshell, cash flow statement shows good performance in regard to the company

Review of the stockholders equity

The following is the list of the required account balances:

(Amounts in $ 000)
Particulars	2015	2014	% increase or -decrease
Issued capital	74,904.00	74,904.00	0
Accumulated Loss	-26,534.00	-30,276.00	-0.12

(annual report, 2015)

There is no change in the equity share capital. However accumulated loss has been decreased by 12% which is good sign for the company. 

In the nutshell, it is implied that company have been running the business efficiently soaps to reduce the accumulated loss. 

4. Conclusion

On the basis of the analysis of the balance sheet, income statement and cash flow statement, it has been proven that

• Financial position as an overall is showing the positive performance of the company but also three must requirement to reduce the borrowing to the extent possible.
• Revenue has been increased with higher amount and simultaneously there is cost cutting. The company is acting as a role model for other. It clearly implies that strategy used by them is very effective as well people who are involved for application of the same are very efficient. Resultant company has achieved this.
• cash flow statement also shows good performance in regard to the company 

5. References

Amagroupltd.com. (2016). 

Amagroupltd.com. (2016). AMA Group Ltd – Businesses. 

Amagroupltd.com. (2016). AMA Group Ltd – Financial Reports.

Amagroupltd.com. (2016). AMA Group Ltd – Home.

Readyratios.com, ‘Financial Analysis and Accounting Book of Reference: Statement of Financial Position | IFRS Statements | IFRS Reports | Readyratios.Com’. Nap. 2015. Web. 22 May 2016.

Readyratios.com, ‘Financial Analysis and Accounting Book of Reference: Statement of Financial Position | IFRS Statements | IFRS Reports | Readyratios.Com’. Nap. 2015. Web. 22 May 2016.

Conclusion