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Business One Of The Most Essay

64 (for 2008). This was calculated by taking ($553 billion / $36.5 billion = 15.36) and ($420 billion / $19.4 billion = 21.64). NAB would have a debt to equity ratio of: 16.92 (for 2009) and 17.55 (for 2008). This number was calculated by taking ($616 billion / $37.8 billion = 16.92) and $639 billion / $36.4 billion = 17.55). The debt to total assets for Westpac would be: .37 (for 2009) and .42 (for 2008). This was calculated by taking ($133 billion + $90.4 billion / $589 billion = .37) and ($100 billion + $86 billion / $439 billion = .42) NAB has a debt to total assets ratio of: .97 (for 2009) and .97 (for 2008). This number was calculated by taking: $57.3 billion + $579.8 billion / $654 billion = .94) and ($68.6 billion + $593.4 / $676 billion = .97). The low reading from the debt to equity and debt to total assets ratio, is an indication that Westpac has more than enough assets to cover their short- and long-term obligations. Evidence of this can be seen with the debt levels remaining close to each other, despite a recession occurring during this time. (Westpac Group 2009 Annual Report 2010, pp. 69 -- 114) (2009 Full Year Results, pp. 3 -- 34) What, in your opinion, are the significant changes between the two-year (2008 and 2009) and have these changes had a positive or negative impact on the operating activities for the company?

The significant changes are that Westpac has been: increasing their debt and maintaining their profit margins. This has had a positive impact on the company, by improving their overall bottom line numbers, allowing them to take advantage of various opportunities.

How much debt has...

Instead they increased borrowing by $133 billion. The financing activity that would have greatest impact on the company's balance sheet is: the increases in deposits from $233 billion (in 2008) to $329 billion (in 2009). This would have the greatest impact on the company, by increasing their overall levels of debt. (Westpac Group 2009 Annual Report 2010, pp. 69 -- 114)
Has the company been expanding or contracting in the past 2-year? If so, what has been the emphasis or contraction strategy for this year and has that changed compared to the previous year? How and why has this emphasis impacted the company's investing activities?

The company has been in a slight contraction that has seen earning mildly decline. Their strategy for this year has been to improve the brand and reduce exposure to risky areas. This has impacted the company's investing activities, by making them more risk adverse. Where, they are asking customers a number of questions, to determine if particular financial product would be suitable. (Westpac Group 2009 Annual Report 2010, pp. 69 -- 114)

The earning yield for Westpac is 7.9%. This was calculated by taking the price of the stock $110.00 then dividing it into the EPS of the company ($2.85), giving you .079 or 7.9%. As far as NAB is concerned their earnings yield would be: 7.8%. This was calculated by taking $1.93 /…

Sources used in this document:
Bibliography

2009 Full Year Results, NAB. Available from: NAB [5 October 2010].

Earnings Yield, 2010. Online Investing Secrets. Available from: [5 October 2010].

National Australia Bank Limited, 2010. Available from: <http://finance.yahoo.com/q/hp?s=NABZY.PK&a=11&b=16&c=1988&d=08&e=20&f=2010&g=d> [5 October 2010].

Westpac, 2010. Available from: <http://finance.yahoo.com/q/hp?s=NABZY.PK&a=11&b=16&c=1988&d=08&e=20&f=2010&g=d> {5 October 2010]
Harvard Format. http://libguides.library.uwa.edu.au/data/files2/49275/Harvard%20LibGuide%20-%20All%20Examples%20PDF.pdf
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