Going Back to go Forward

So I’m a little late to the party with my steps 3-5 of assessment 2. I won’t lie, at times this one has hurt my head! Am I looking at the right drivers? Are they really going to affect my company? Am I just writing fluff? Hopefully not and you will appreciate the analysis that I have completed on my company Infomedia.

If you would like to give me any feedback that would be greatly appreciated, if not, I hope that you enjoy reading my fluff.

I can’t believe that I am so close to not only the end of term, but the end of my degree. It’s been a pleasure interacting with all of you and I wish you all the best for your chosen paths in the future.

I managed to blag my husband to book us a couple of nights away in the Gold Coast Hinterland once I’ve done my last exam, my degree will be complete after 3 years of hard graft so the thought of drinking a nice glass of local vino in a hot tub whilst watching the sunset is my current motivation to keep going!!

Sorry, that’s supposed to be a spin on Shakespeare, not quite sure I hit the mark, oh well!

I can’t believe we are at the end of week 12, I can’t believe that I’m last minute with this assignment, that is just not me!! My work load this term (my final term!) has been over whelming and I lost my voice about 6 weeks ago due to being run down and am looking forward to (hopefully) getting it back after exams!

So my firms ratios. I was trying to find a firm to compare it to in a similar industry but their is only one and the person who has that company hasn’t posted on their blog since step 2 of assignment 1 so I’m kind of going in blind a bit. Anyway, here are my thoughts on my firms ratios and I have also included my ratios for you to look at.

With regards to comparisons, I am an on campus student and have had great discussions with my classmates each week about the differences with our results. We have 3 completely different companies and they tell 3 completely different stories.

What do my ratios tell me? 

It was clear when looking at my ratios that something big happened in the 2020 financial year as the assets of the company increased significantly.  That something was a share purchase plan in May 2020, gaining the company $83.9 million.  As this was towards the end of the financial year, they clearly hadn’t had time to use the equity as they intended so it caused a major uplift in any ratios that had anything to do with financial assets.  As I knew this was the case, I decided to work out my 2020 figures without the $83.9 million to give me a better picture of where my company actually stands.  According to the annual report, the money was raised to enable Infomedia to acquire assets that will leverage core solutions with enhanced technology, gain access to new customers and gain entry into new geographies.  I am aware that they have recently purchased an American company ‘SimplePart’ who implement and manage consumer facing e-commerce programs in the US and Canada for a lot of the world’s top automakers to hopefully help them increase their sales in the Americas as this was their only decreasing market in the FY2020.

So now that I have taken out the money raised in May 2020 for future investment, what are my key accounting drivers telling me?  The net profit margin has steadily risen from 2017 to 2019 but had a slight dip in 2020.  They do admit in their annual report that covid did hit them in the last couple of months of the financial year as they adopted the practice of how to help their customers by offering to defer payments and delaying the starting of contracts due to the decline in car sales due to the pandemic.  The slight dip doesn’t concern me and when I look into the half year annual report for FY2021, they are in a similar position as they were at the half-way point last year.  They have moved their focus to aftersales as this is the most profitable area for not only themselves but their customers, the dealerships. So let’s look at total asset turnover, it measures the efficiency with which a company uses its assets to produce its sales.  Obviously with the $83.9 million left in the figures, there is  a massive dip in the trend but taken out, the trend is a lot steadier, but the ratio is decreasing year on year.  So for every dollar in total assets they are generating they are currently getting back less than a dollar in sales, should this concern me?  I look at what they have done in 2020, especially with the pandemic where all of their 400 workforce started to work from home.  That’s 400 computers, 400 telephones and headsets, 400 desks and chairs plus I’m guessing other items too.  That explains the increase in assets.  When I compare these figures to the other companies in my class, Lycopodium (Sam) and Galliford Try Holdings (Emily), they are lower although none really have a pattern.  Galliford Try’s jumps in 2020 like Infomedia.  Emily tells me it was due to them selling off one the companies it owns, Liden Homes and is now focusing on move government contract based builds such as schools, health centres and infrastructure.  With regards to the current asset turnover, this again was steadily increasing but took a dip in 2020 (when you take out the $83.9 million).  Although the sales and current assets increased again in 2020, they clearly didn’t hit what they were expecting to before the pandemic.  Lycopodiums current asset turnover ratio has decreased from 2017 to 2019 and saw a small decrease in 2020 which was due to not being able to start projects due to the pandemic.  Infomedia’s return on net operating assets again saw a steady increase from 2017-2019 with a dip in 2020 due to delayed income brought on by the pandemic, although they are all still above 30% which is a really healthy return.  When I compare these figures to Galliford Try, theirs are much lower 6%, 13%, 9% then jumping to 25% in 2020.  Clearly selling of Linden homes was a positive move for them when it came to reducing assets and increasing returns.  When I look at Lycopodium, theirs is all over the place!  -73%, 210%, 72% then -42%.  When I speak to Sam about it further, they had negative NOA in 2017 and 2020 and a lot lower OI.  Debt to equity ratio is an important one for me, they have less that 50% each year which is a positive.  When I compare it to Galliford Try, theirs is huge with the lowest year being 273%!!  They clearly rely on their income to pay off their liabilities, I’m not sure that makes me feel good about them, what is one of the companies they are working for goes into liquidation and they can’t get their money back?  Maybe that is why they have decided to work on mainly government contracts now, at least you know you will get paid.  From an investment point of view, Infomedia and Galliford Try are definitely more appealing from this ratio than Lycopodium or maybe that’s because I’m a girl who likes consistency?

So I’ve been quiet for a while on here, just like the rest of you, my workload is increasing, deadlines are drawing closer and it’s the end of week 8. Week 8?! I feel like we should be in week 5. I feel like I’ve blinked and missed a few weeks!

Again it’s been a busy week, but we have finally found a new house that is less than 5 minutes from where we are now so should be moving next weekend, cause I don’t have enough going on at the moment right?

One thing I did learn this week and really enjoy although I panicked when put on the spot was Martin’s lecture on Thursday. It was just myself and the 2 Emily’s but I got sooooo much from that lecture. So what did I get from that lecture I can hear you all asking?

I hadn’t really thought about what the key accounting and economic drivers of my company Infomedia are and the ones that I thought were the economic drivers, well they weren’t! My thinking was that new car sales would push sales for Infomedia but its the number of dealerships that increases their sales so have dealership numbers increased? Need to research that. Where in the world is the largest part of Infomedia’s market? Need to look at that too. How will the electronic car market and global warming with its legislation affect the market in the future, again I need to look into that too! These are all things I hadn’t thought about and wouldn’t have thought about if I hadn’t attended the lecture. Thanks Martin and ladies, I owe you one.

I also attended the on campus workshop on Friday with one of the Emily’s and again, another eye opener. We went through breaking down the ratios, what we should be looking for, are their patterns to your figures and if not why not? What’s caused the ‘break in the chain’. All really useful information. I took lots of notes and then did the clever thing and typed them up on the train to work whilst they were still fresh.

Still feeling under the pump with a house move now thrown in this week it’s gonna be a busy one. Sleeps for wimps right?? Just gotta think of that end goal……..

So, coming to the library today was definitely the right decision as I’m now feeling confident in my assignment and my financial statements. I’ve attached them below so you can have a nosey at them, feel free to give me some feedback as this is something that you will always find me grateful of!

Happy reading Peeps

Can I just ask where the hell has the first 5 weeks of term gone?! I feel like it’s gone in a whirlwind and I still should be in week 2 or 3 not half way through my final term!!

I won’t lie, I’ve had a tough couple of weeks, I hate rain and not being able to get out, then the lockdown and the anxiety of international travel being pushed back yet again (you guys have no idea how much I want a hug off my mum n dad right now) and then my landlord decides to put our house on the market so looks like I’ll be moving house just before exams!! They say it comes in threes so a break right now would be greatly appreciated please.

But time to give my head a wobble, I’ve worked so bloody hard to get where I am and I’m not going to let a global pandemic and the prospect of having to house hunt get me down anymore. My favourite saying I’ve learnt since being in Australia is ‘it is what it is’ and it certainly is and these issues are currently out of my control so let’s get our head down and focus. I’ve actually made the effort to come onto campus today and sit in the library, I’m in my zone so time to focus on my upcoming deadlines and get this done!

Come on girl, you got this………

So like many of you I’m sure, I was filled with anticipation when I opened the spreadsheet to find out who my company where on the Friday of week 1, looked at it, wasn’t too impressed as I’d never heard of my company, bookmarked the link to their website and then didn’t look at it again until earlier this week. Yes I know, completely the wrong way to do this but my company ‘Infomedia’ didn’t fill me with delight and I have no idea about the software and services industry which is the industry they are a part of.

So who are Infomedia and what do they do? They are an Australian company with their head office in Sydney although they have offices all over the world. They are a Saas business and for those of you like me who have no idea what this stands for it’s software as a service.

Infomedia deal with the automotive industry and develop and supply electronic parts catalogues along with service quoting software, data analytics and business insights for aftersales parts and service for some of the biggest automotive builders in the world.  Their customers include, Aston Martin, BMW, Dodge, Ferrari, Ford, General Motors, Holden, Jaguar, Volkswagen dealerships and many many more covering the full range of the automotive market.  

www.infomedia.com.au is the home page

Once I started looking into the industry, only then did I realise how big it was. The industry is currently worth over $9 billion (AUS) but Infomedia only have a $565million stake in it.

Obviously we are looking more at strategy in this unit and the below is the companies strategy that they let us see, we all know the real strategy is kept under lock and key! if I’m honest, it doesn’t really tell us anything that common sense tells us. Try and grow sales, work on new software, both obvious strategies for a company that relies on paid subscriptions to their software?

Well it’s now 9.50pm on Saturday night, I’ve been at the laptop for about 7 hours today on and off so now I think it’s time to go and make a brew (cup of tea) and chill out with my book to give my brain a rest. Happy Sunday peeps, I hope the sun shines for you all

So we are now into week 2, how quick did week 1 go?! I won’t lie, having an assessment deadline, 4 days into term made me nervous and the fact I hadn’t done key concept questions for 2 years made me go back and revisit. What would we do without Danielle’s top tips!

I more or less stuck to my planned schedule with regards to juggling study and work, I planned on keeping up my pre work morning gym sessions 3 times a week but alas, my body wanted to sleep more than lose calories so sleep won. I’m very conscious of the fact that if I’m tired, my work rate is probably 50% of what I want it to be and I just can’t afford that in my final term. Plus the fact that my brain is put to use in my job as I’m now an accounts assistant whereas in previous terms I was working in the hospitality trade pulling schooners and serving food which didn’t test my mental capacity very much!

I submitted my step 1 7 hours late and yes I know we don’t lose marks for this but I just can’t stand lateness so was disappointed in myself. Because of this, step 2 is well under way and will be submitted before the deadline this week.

I was really pleased with my result for my step 1, especially as it’s been so long since I last did KCQ’s and it seems I’ve managed to up skill! Hopefully this will continue for the rest of the assessment. I’ve attached my step 1 below if you want to have a read.

So my week is planned, looks like I won’t be getting distracted by sunshine as we have rain forecast all week so hopefully I can keep on track or maybe, just maybe, get ahead a little.

Have a good week peeps!!

Karen xx

So it’s my final term at CQU, 2 years ago this moment felt so far away but it’s come around so quickly even with the events of 2020 but let’s not talk about that. I’ll admit my blog was neglected since I last studied with Martin but I remember what a great way it was to express how I was feeling in my studies and was great to see that I wasn’t alone in my heavy workload both bill paying and studying!!

I’ve spent the summer working in an accountants office who I’m over the moon to tell you has offered me a career once I complete my degree, let’s hope they let us stay as we are really settled now, both working in jobs that we love and living in a great community. Please don’t let our dream end!! Over the summer we did manage to get away for a week camping though, we travelled north to Hervey Bay, 1770 and Bargara to catch up with friends, see some more of this amazing country and tick more things off our bucket list….

But now it’s time to get my head down again, my aim is to finish my degree with a distinction so I won’t lie, I’ve got some hard work ahead of me for the next 14 weeks but if you want something, put the work and effort it, you achieve it right?

We’ve travelled, each and every highway……

You can’t say the heading, come on, you know you sang it!! Can’t beat a bit of classic Sinatra.

So, if I’m honest, I’m a bit sad that we’ve come to the end of this unit, not only because I’ve enjoyed completing it and learned a lot, and it has increased my self belief which as I’ve gotten older, seems to decrease. On this course, I’ve made a lot of friends across Queensland that has made my move to a new country 10,000 miles away from home, and settling in to a new university a whole lot easier so thank you to each and every one of you. If we ever meet in person, the beers are on me.

So steps 7-9 are complete, if you are looking for someone to swap feedback with then give me a shout.

Please have a read and let me know what you think.

I wish all of you the best of luck in your future studies and hope our paths with cross in another unit along the way!!

So the last month for me has been hard, hence why I have been quiet on here and on the Facebook page too.

I’ve started a job 3 days a week at the beginning of May and had the in laws staying with us from the 28th April for a month, which is the period I have had the majority of my deadlines for my four subjects. It’s been hard to try and get into a routine as I wanted to spend time with my in laws but often I had to say no due to study commitments and didn’t like disappointing them. But they are aware that we have come over to Australia so I can study so maybe next time they might ask when’s the best time to visit instead of booking flights and ‘surprising’ us. I dropped enough hints this visit so let’s hope they took them on board and ask so they can come at a less busier time next year.

They left us yesterday so it’s time to get back into routine, not only with study and work but life in general. I can’t wait to get back into the gym and my diet return to normal, all that eating out just isn’t good for my waistline!

I have managed to keep up to date with ACCT11059 though and was pleased as punch when Martin asked if he could use my step 5 as an exemplar for others to look at for guidance. I think their is no better recognition for your work than this. So here are my step 5, and my step 6 which I have finished today. I hope you enjoy.

So moving forward, you’ll be hearing more from me, more often until the end of term or until I’ve completed assignment 2, hopefully the latter will come first!

Karen