Answer to Question #131305 in Management for sandeep

Question

my company name is Aristocrat Leisure Ltd and ASX code is ALL.

You are an analyst at an investment bank, that is compiling information on listed companies, to distribute to clients (investment fact sheet). The fact sheet is to be no longer than 2 pages and needs to include information on the company’s:

(a) Background
1. What the company does
2. Directors
3. Remuneration
4. Other interesting facts

(b) Analysis of the company’s industry / competitors

(c) Key financial results
- Select some results that would be interesting for investors

(d) Key ratios
1. Liquidity
2. Solvency
3. Utilisation
4. Profitability
5. Market based

(e) Your recommendation: Suggest whether to buy, hold or sell


Please provide max 1 page appendix for all calculations.

Answer 1

Aristocrat Leisure Limited is a public company that is owned locally. It is responsible for obtaining revenue from the design and modeling, marketing, and servicing of gaming consoles. ALL operates in approximately more than 90 countries, and its main headquarters are located in North Ryde in the south wales. The company has the board of directors that aid in making decisions and ensuring that the firm runs well and achieving its primary objectives. The board of directors includes:

Neil Chatfield-Chairman

Trevor Croker-CEO and managing director

Kathleen Colon-Non, Executive director

Julie Cameron-Doe-Chief financial officer

Christer Roser-Chief people and culture officer

Dan Yang- Chief strategy officer

Mike Lang-CEO of digital

Victor Blanco- Chief technology officer

Chris Hill-Chief Legal officer

Trevor Croker, the CEO of the company, is the greatest beneficiary of the remuneration process. After his relocation to the United States, his compensation package, according to the report released by the firm, was more than double. However, the firm also stated that both the short term and long term incentives were to be paid under the subject to improved performances among the employees.

The company operates in a market that has very high competitive consumer services in the industry. It has innovated new products and services to the market. This technique has attracted several customers to buy their products and services. To also curb competition from other companies, the firm has built economies of scale that play a significant role in lowering the fixed cost per unit.

In conclusion, 26% of the company is owned by institutional investors. This is a clear indication of credibility in the firm. However, we cannot depend on this fact alone because sometimes institutions make wrong or bad investments. According to the experts, the next three years' annual earnings growth is likely to be -3.2%. If one had bought shares five years ago in the company, he/she could have made 394%, so it is clear that the company is profitable. So as an analyst, I could have suggested one to buy the shares in the company.