Having organized accounting in an organization generates a clear picture of financial position as well as assembles the company's ability to make repayments of its obligations to the third parties. Accounting analysis in the organizations helps in uncovering important insight into the financial position and risk management of the company. BHP Billiton is an international resourceful company founded in 2001 by the merger of two companies which is BHP Ltd. And Billiton PLC.
These two Australian companies are the biggest mining companies and are involved in the production of steel. Iron, copper, silver, aluminum, oil, and gas. Whereas Teaser Malt is a British-based confectionery business that creates milk chocolates in a variety of packaging. Both the companies BHP Billiton and Teaser Malt are two very different companies and have different types of accounting structures.
Accounting Analysis of BHP Billiton
It’s an Australian-based company working on resources and diversified its activities in the energy sector. The prime goal of the organization is to deliver long-term shareholder value by doing new discoveries, and developing and marketing of different natural resources. Through the financial analysis of a company is generated that the financial performance of the company is quite impressive. Earlier the market capitalisation of the company was $180 billion and the revenue generated by the company was $72.2 billion. It can be evaluated through BHP Billiton group operations states that the company is stable in its financial abilities. The debt ratio of the BHP Billiton group is 42: 58 which indicates that the organisation is managing its financial operations with great financial abilities. Overall it can be generating from above information that BHP Billiton functionality in its financial sector is good and indicates organic growth of the company with maximize shareholder wealth.
Accounting Analysis of Teaser Malt
It can be analyzed from the detailed evaluation of Teaser Malt's working structure that their production volume has been increased from 30,000,000 to 60,000,000 and the retail prices of the product also increases to $5 because of increment in the company's expense. The net volume that Teaser Malt generated in per product is around $3.32, which contributed in enhancement of sales and helps in company in a way to survive competitive market.
After implementation of the change, it can be analysing that there is further increment in the total expense amounting approximately 30.77% as a result revenue percentage decreases. Through the detail study and accounting analysis of the Teaser Malt, it is evaluated that business is not generating the desired profits even making increment in volume of production. Current state of the company is that they are increasing their sales on order to balance the profit and expenses appropriately.
Conclusion- From the analysis of the accounting statements of BHP billiton and Tease Malt it can be concluding that the later one is not as efficient in their working while BHP Billiton conducting their work effectively and efficiently.
Students can also take: Online Case Study Help
BHP Sustainability Report
BHP Billiton LTD. operates in mining natural resources and this extracting natural resources can impact on sustainability of the environment. The BHP sustainability report is given below:
Approach-The approach which BHP Billiton implemented in organization in order to maintain sustainability is through providing clear information about all the techniques and strategies that company implemented in working structure. For the public interest they have discloses their data by consider the health and safety of their employees. In addition to that BHP Billiton also reveals their planning which helps in confronting all the problems that may become barriers in their objectives of zero emission.
Responsibilities- In the BHP sustainability approach it has been clearly defined that they have put the safety and health first in the context of their employees as well as for the general public. Their operations are firstly based on the corporate responsibility. The company has given importance to well-being of the people through their working with that they have contributed highly on community and environmental development.
Commitment- BHP Billiton are highly committed towards its target of 5 years plan which indicates that they should maintain total operations in greenhouse gases emissions low. The company has implemented all the possible rules and regulations which is necessary for the reduction of greenhouse gases. It’s been very evident that the increasing global warming is the result of emissions in greenhouse gases and the depletion of fossil fuels.
Action- The BHP sustainability report on corporate social responsibility report focus on the critical aspects of the organisation that influence the people around the worlds. They have work on their product and services in order to maintain sustainability. The first action that they have taken in their organisation is to make reduction of the negative impact by the company on the environment. Through the comparison of social environmental performance of the company with the set standards and then fulfilling the differences, BHP Billiton completes their responsibilities in developing sustainability in organisation working.
Above information is very relevant for the learners and the students as it provides detail information about the accounting policies of both the BHP Billiton and Teaser Malt. Both the companies are contributing their best in order to increase profit and sales. The also helps students about how BHP Billiton is making sustainability in the company and how they are aligning their work through BHP sustainable report.
Most searched FAQ's by the learners:
1. What resources are mined by BHP Billiton?
Answer- BHP Billiton is largest mining company across the globe and are involved in the production of steel, iron, copper, aluminium, oil, silver and gas. The company also making their operations in engineering and transportation. BHP Billiton's headquarter are based in Melbourne, Australia.
2. When did BHP merge with Billiton?
Answer- The board of both the companies believe that the merger develops a strong platform for the growth of their shareholder. And both the companies merge in 2001.
3. How Teaser Malt sold their chocolates?
Answer- Teaser Malt is one of the best Jupiter brands and sold their chocolates through supermarket chain in Australia and proved as the clear leader in selling chocolates in Australian market since 40 years.