TREND AND FINANCIAL RATIOS ANALYSIS OF TASSAL LTD

Introduction

Tassal Ltd, an Australian salmon farm based in Tasmania, has been staging exemplary performance not only in financial performance but also in environmental, social and corporate reporting. Being a benchmark for the industry, the company is reporting increased profitability and liquidity (Tassal Group, 2015). The success of the company is compared with Huon Aquaculture Group Ltd. The latter is also a huge investor in the fishing industry subsector and is commanding a significant market share. The significance of increasing profitability and stability in financial performance sends important signals to its shareholders to make important decisions on reinvestments and dividend distribution. By analysing profitability and financial performance, Tassal limited seeks to attract financiers who will help to boost its financial position and leverage against major competitors like Huon Aquaculture Group Ltd. Firstly, this report begins by analysing trend analysis of the company between 2012 and 2015 to obtain profit after tax. Secondly, the report focuses on specific financial ratios namely; profitability ratios, liquidity ratios, efficiency ratios, financial gearing ratios and investment performance ratios. These ratios will help the company understand their profit margins and whether they have enough money to support new fishing projects. It is also important that some funds will be dedicated to marketing the company and its products to increase reach. As companies in the productive and agriculture sector, the report will find a basis to compare performance of two firms within a sector to understand internal and external forces behind soaring performance.