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Introduction: Accounting Principles of 1414 Degrees Limited
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Objectives
The main objective of this assignment is to provide a performance insight on the matter of the 1414 degrees limited financial position by calculating the key major ratio figures evaluating the annual reports and also the effective SWOT analysis for which in the future the company can settle into more subtle position if it is going through any problem in its financial statement.
Overview of the industry
1414 degrees limited is a capital industry that mainly deals with the technologies and the bases which function on the management of the manufacturing of energy storage systems in the land of Australia. The company mainly offers the renewable generation of energies by stabilizing the grid of the thermal engines as they fully offers and provides the thermal enabled efficient acquiring mechanism in them. They make this available all the time.
Figure 1: Principle of accounting of 1414 degrees limited
(Source: Self-created)
The audacy revenue TTM of this company is nearly about 567K in Australian dollars and also the net income according to that audacy is 1.4 million dollars. The below diagram is showing the outlook of the forecasted predictions that have been made on the stock market value of about 1414 degrees which is a presented form between the years 2019 to future 2024 with a higher degree of downing grades.
Figure 2: The forecasting of the price in the share markets of 1414 degrees limited.
(Source: https://walletinvestorstorage.b-cdn.net)
There is a valuation that has been made on the prices that 1414 degrees used which is giving a range of 0.0180 in between the minimum estimated price which is 0.0769 dollars to the 0.0949 dollars. This is just a normal example according to the year 2022’s December current valuation (Huong, 2021). 1414 degrees limited is maintained on the terms of the 14 days where the audacity is the 0.1015 is taken as the upside term and the 0.0745 audacity is taken as the downside as the highest and the lowest predicted price within the 2 weeks periods.
Figure 3: The recent 14D targeted price rates of 1414 degrees limited
(Source: https://walletinvestorstorage.b-cdn.net)
Commentary on Annual Report
On the factors of the full commentary on the Annual report of 1414 degrees limited there is the full functional estimations about its performance validation thoroughly. The analysis of the financial performance and also the financial position will be evaluated as per this citing of the annual report where the cash flows will be grounded on (Papadamou et al, 2020). Judging by the cash flow of the capital enterprise can help to estimate what the critical insight can divulge into the company by learning through the effective information it requires to give the determination (Debelle, 2019). Now, in general, there is the remuneration report which is managing the key aspects of the shareholding determined from the years 2021 and 2022 (Nguyen & Nguyen, 2020). In basic stature, there are the disposals and also the additional remuneration which is saying the balancing of the financial report is absolutely higher than the last years.
The performance rights that they have acquired have gained the rate of the 7% with the approximation of the other eliminating the prospects of the disposals, and other additional variations. The annual report also includes the risk analysis which in general contains earnings that are near about 6.3% which is quite larger than the last half of the decade (Sari et al, 2019). The market cap is an audacy of 17 million dollars under the annual estimates of -28.3% (Das, 2019). There is no presence of the dividends as when the financial year ended on 30th June 2022. The annual report also examined the matter of the ordinary shares, as in 2021 it was 13 million balance was reported whereas in the year 2022 it goes to the height of 14 million Australian dollars (Liman & Mohammed, 2018). Now, this is a general hike than depending on the rest of the performance, adjusting the shareholding sides with the low disposals with the high additions.
Analysis Statement of Financial Performance
According to the Standards of Australian Accounting, 1414 Degrees Limited shows "financial statements" for the fiscal year 2020 and covered the whole group.
Australian dollars are used by shares 1414 Degrees Limited for the grant will be delivered and the organization would adhere to all of the associated symptoms for recognized for full market price. Government funds for costs are postponed and recorded as loss or profit over the time frame required to match these to the expenditures that are meant to be offset (Chen et al, 2020). Unrealized gain grants from the governments are subtracted from the income statement.
Though the cash flow is higher in the year 2022 than the rest ones it is still fighting the level of the operating expenses that it has shelved which are higher than the last years. With that being said it has been estimated that the gross profit is also higher as well with respect to the last years (Rahman et al, 2021). There is another thing that can be said while maintaining the balance sheet basis is can be said that the total assets are somewhat lower in the year 2022 with respect to the last years (Banerjee, 2019). Where liability is lesser than the previous ones which are a good one. The beta value that has been gained is 1.53 which is hiking with the shared statement that is 95K with a change in -0.0204 with a percentage of -4.7% in the recent valuations.
Analysis of the Statement of Financial Position
Information of other deals has been discussed between critical management employees and their connected partners. This business is connected to total revenue of 390.909 in the year 2022, Merchant Accountant collected $8,690 in fees over the course of the 2021 year, and by the end of the year, it had no outstanding debt.
Contested possessions are to recognize abdication from operation axes from 3,423 to 3,955 in 2022. Therefore removing the controlling stake from the disclaimer shows income operation that shows an increased value over the final year of 2022. Disposals would be to realise abdication from 7 November 2019 and therefore remove common shares from disclosing share pretax income value along with$ 5974 at the time of this report (Ali, 2019). The balance maintained before joining the 86.082 is shown as financial data.
|
2022 |
2021 |
|
|
Total revenue (gross profit) |
390.909 |
- |
|
Operation expenses |
3,955 |
3,423 |
|
Income operation |
-3,564 |
-3,423 |
|
Pretax Incom” |
-1,369 |
-5,974 |
|
Net Income |
-1,369 |
-5,974 |
|
“Normalized Income |
-371.794 |
-3,041 |
|
Normalized EBITDA |
286.082 |
-2,800 |
|
Tax Rate for Calcs |
0 |
0 |
Table 1: Balance sheet of Income Statement
(Source: https://finance.yahoo.com.net)
The Cash flows from activities of financing give outlet over borrowings procedures of 1,335,493 along with borrowings of (1,335,493). Therefore, the company constantly increased their financial performance regarding each section highlighting (398,868)lease liabilities. Thus, costs for the transaction are related to issues of options and company shares (315,839)
Total shares outstanding show an increase of their company shares from the exercise of 200.66 to 201.99 by sharing company sever options 31,657.
Figure 4: Balance sheet of liabilities
(Source: https://finance.yahoo.com.net)
The figure shows that Both the board and the collective secretariat have been reimbursed by the company for a charge of $65,000, to the maximum authorized by law. The expenses and fees that could be incurred in protecting criminal litigation against the security guards in their own capacity as police of the Collective or a connected body (Ahmed & Bhuyan, 2020). Therefore, other transactions of 2.95 liability cost originating from personal liability increase of $ 10.95 to 11.99 by the deputies in correlation with such litigation, are included in the liabilities sum assured, barring situations in which such liabilities result from the deputies' gross misconduct or their inadequate use of official resources.
Analysis of the Statement of Cash Flows
The analysis of shows that received cash from customers to invest in the matter of employees and suppliers linking with $587.159 to 631.553 in 2022 onwards. Therefore, governemnt grants can be sorted with 4,291,809 in 2021 and 2,981,431 in 2022. Insurance over capital stock market shows 3.176 in 2021 whereas in 2022 it is not found out still. Therefore, purchase over property and insurance debt can be connected with this matter to purchase entities through free cash flow rate maintenance with -3.915 in 2022.
Figure 5: Cash flow rate of 14 D
(Source: https://finance.yahoo.com.net)
Exception of capital expenditures 1.477 (2022) in which the tax department is unable to refix all GST paid on purchases, in whose instance the GST increases from being reported as a component of the investment's acquisition price. It will create a new pathway for offering significant, income statements that are reported net of GST with 3.176 capital stock. [Refer to Appendix 2]
The quantity of Taxes is reflected in the statement of account receivables of $ 631.553. In the financial statements OF 2022, the remaining balance of GST which is recovered from it or owed to the taxing body is listed as a collection or a payment. The 1414 Company financial statement includes cash streams -3915.00 on a net basis as well as the Sales tax element of retained earnings from working capital. Therefore, if the company gains purchases its product by depriving its asset values it will set accounting standards more that will help the company to decrease its lease of payments onwards.
Analysis of five key ratios
Basically from the calculations it can be evaluated that though the company was in profit during the year of 2018 it still from then it was going down in loss, and now in the financial year end of 2022 also it has not worked out well. Like in 2022 its current ratio is 5.89 and in 2021 it was 6.36 which clearly shows that it is on the way to loss even in 2020 it was 10.37. [Refer to Appendix 1]
Figure 6: the particular five key ratios of the 1414 degrees
(Source: Self-Created in MS Excel)
SWOT analysis
|
Strength ? Here on basis of this vulnerability, the Australian dollar would have declined by 10% and improved by 5% in 2020. ? In comparison to these different exchanges, the group company shows profit before tax for such year will have been $887 and higher $17,352 value ? Therefore, it can be said that 14 D shows more equity in the final year that would create an impact on $887 overall cash flows. |
Weakness ? The cash flow model recognized an 11% discount rate of pretax discount. ? No revenue has been earned by the company onwards for 2021 to 2022. ? Volatility does not show an outlet for increasing sales now in recent times to increase market movements. |
|
Threat ? Company does not provide management control on regard ordinary shareholder format into expressing one. ? Capital groups with ordinary shares do not show par values. |
Opportunity ? Technical strengths with SiBox technologies will be evaluated as a commercialization possibility and may create new opportunities within the high thermal business. ? The principal trades potential for TES gadgets are being highlighted also as sectors for lengthy grid scale storing and hybrid engine facilities based on in-depth consumer appraisals and assessments of areas of growth. |
Table 2: SWOT analysis
(Source: Self-created)
Recommendations
In the recommendations, there are certain things that can be maintained as the vital importance for the future aspects of the 1414 degrees for showing the arrangement of its profitability and also the income validation through the generic cash flow by upholding the stocks. The statements are as follows:
- First and foremost thing that can be seen over here is, during the recent year they have been seen as lacking the numbers of assets very highly which is very opposite to the lasts years from 2019 to 2021. Now for maintaining effectiveness they need to access out the resource problems. The resource is a matter of significance for the high estimated workflows through cash management.
- Next thing is their liability in the balance sheet has been seen to get lower than the last year's variations now this is also a matter of higher problems. Now it is of very much importance which creates the base of the company with the storing bases, causing a lower in liability creates the lowering of the business valuation in the stock exchange base.
- They need to maintain the shared objective that's why the performance target is highly important to look into each aspect, they need to make it flow in a varying way in the panels for the company.
Figure 7: Recommendation for recovery accounting performance
(Source: Self-created)
Conclusion
In conclusion it is only left to say that the company 1414 degrees limited can act effectively if the maintenance in the share market through the effective liability on the cash flow and also on the asset distribution can be made. Now by the higher estimations, the calculations and the analysis are given which produces general insights on the income statement and the performance rate of 1414 degrees. The SWOT analysis is provided which gives the estimated and predicted values for the volatility and the management of the increasing market shares. The recommendations are also provided on this factor by establishing the objective's main aim in the aspect of holding the shares in the competitive market of stock exchanges in Australia.
References
Journals
- Ahmed, R., & Bhuyan, R. (2020). Capital structure and firm performance in Australian service sector firms: A panel data analysis. Journal of Risk and Financial Management, 13(9), 214. [Retrieved from: https://www.mdpi.com/1911-8074/13/9/214/pdf Retrieved on: 25/11/2022]
- Ali, B. J. (2019). Iraq Stock Market and its Role in the Economy. LAP LAMBERT Academic Publishing. [Retrieved from: https://www.researchgate.net/profile/Bayad-Ali/publication/342210475_Iraq_Stock_Market_and_its_Role_in_the_Economy/links/5ee8c13e458515814a62aa0d/Iraq-Stock-Market-and-its-Role-in-the-Economy.pdf Retrieved on: 25/11/2022]
- Banerjee, A. (2019). Predicting stock return of UAE listed companies using financial ratios. Accounting and Finance Research, 8(2), 214-225. [Retrieved from: https://www.researchgate.net/profile/Arindam-Banerjee-16/publication/332961955_Predicting_Stock_Return_of_UAE_Listed_Companies_Using_Financial_Ratios/links/5cd3cb43a6fdccc9dd96c633/Predicting-Stock-Return-of-UAE-Listed-Companies-Using-Financial-Ratios.pdf Retrieved on: 25/11/2022]
- Chen, X., Le, C. H. A., Shan, Y., & Taylor, S. (2020). Australian policy uncertainty and corporate investment. Pacific-Basin Finance Journal, 61, 101341. [Retrieved from: https://drive.google.com/file/d/1gRMzIU4HypmAEGJNkboUkdzWl6YnNVmG/view Retrieved on: 25/11/2022]
- Das, S. (2019). Cash flow ratios and financial performance: A comparative study. Accounting, 5(1), 1-20. [Retrieved from: http://m.growingscience.com/ac/Vol5/ac_2018_9.pdf Retrieved on: 25/11/2022]
- Debelle, G. (2019). A Balance of Payments. Address to the Economic Society of Australia, Canberra, 27. [Retrieved from: https://rba.gov.au/speeches/2019/pdf/sp-dg-2019-08-27.pdf Retrieved on: 25/11/2022]
- Huong, T. T. T. (2021). Operating Cash Flow And Corporate Financial Performance Of ListedCompanies In Vietnam. Faculty of Economics and Management, Thuy Loi University, Hanoi, Vietnam. TTT Huong-khoamoitruongdothi. neu. edu. vn. [Retrieved from: https://khoamoitruongdothi.neu.edu.vn/Resources/Docs/SubDomain/khoamoitruongdothi/ICSEED/ICSEED%202021/5.%20Operating%20Cash%20Flow%20And%20Corporate%20Financial%20Performance%20Of%20Listed%20Companies%20In%20Vietnam.pdf Retrieved on: 25/11/2022]
- Liman, M., & Mohammed, A. (2018). Operating cash flow and corporate financial performance of listed conglomerate companies in Nigeria. Journal of Humanities and Social Science, 23(2), 1-11. [Retrieved from: https://www.academia.edu/download/56777929/A2302110111.pdf Retrieved on: 25/11/2022]
- Nguyen, H., & Nguyen, T. (2020). The prediction of future operating cash flows using accrual-based and cash-based accounting information: Empirical evidence from Vietnam. Management Science Letters, 10(3), 683-694. [Retrieved from: http://m.growingscience.com/msl/Vol10/msl_2019_262.pdf Retrieved on: 25/11/2022]
- Papadamou, S., Kyriazis, Ν. A., & Tzeremes, P. G. (2020). US non-linear causal effects on global equity indices in Normal times versus unconventional eras. International Economics and Economic Policy, 17(2), 381-407. [Retrieved from: https://link.springer.com/article/10.1007/s10368-019-00457-y Retrieved on: 25/11/2022]
- Rahman, M. L., Amin, A., & Al Mamun, M. A. (2021). The COVID-19 outbreak and stock market reactions: Evidence from Australia. Finance Research Letters, 38, 101832. [Retrieved from: https://www.researchgate.net/profile/Abu-Amin/publication/349597297_The_COVID-19_outbreak_and_stock_market_reactions_Evidence_from_Australia/links/60516284a6fdccbfeae61ca4/The-COVID-19-outbreak-and-stock-market-reactions-Evidence-from-Australia.pdf Retrieved on: 25/11/2022]
- Sari, M. M., Mulyati, S., & Widarwati, E. (2019). The Effect Of Stock Selection Skill, Market Timing Ability, Turnover Ratio And Cash Flow On Sharia Mutual Funds Performance (Case Study of Sharia Mutual Fund Companies Registered in OJK for the Period of 2011-2014). JABI (Journal of Accounting and Business Issues), 1(1), 69-78. [Retrieved from: http://ojs.stiesa.ac.id/index.php/jabi/article/download/352/113 Retrieved on: 25/11/2022]
Appendices
Appendix 1: The 1414 degrees financial chart
(Source: Self-Created in MS Excel)
