Tabcorps IceBerg

I enjoyed the Youtube video walkthrough from Dr Maria Tyler, understanding the concept of calculating ratios and what they individually mean. It’s good to know that in this assessment that we are only calculating the fundamentals as we are all still learning, including myself. From what I’ve gathered from the walkthrough video, calculating ratios identifies a deeper understanding of a firms economic and business realities. The realities of their performances on their finances year on year from 2018 back to 2015. After completing the calculation from financial statements and converting them into ratios, my analysis on Tabcorp is that they are facing tough challenges in the economy. Their performances in finances are decreasing due to unsuccessful ventures in the UK (Sun Bets) and Luxbets (Northern Territory) which affected their business and their acquisition with Tatt’s group in 2017-18 has helped them stay above waters. The question is, what would happen to Tabcorp if they failed to merge with Tatt’s Group in 2017-18? Where would they be in the next 5 to 10 years if they don’t capture the consumer market that they need? However, this is only an overview of my analysis on what I could see from the ratio’s and the decreasing economic profit I could see in the spreadsheet. One thing is, it will be hard to determine how well Tabcorp is performing by its new acquisition with Tatts group, also would be wise of me to continue analyse this company in the next few years to see the trend of performances?

To my overall understanding of Tabcorp’s financial performances based on ratios. I find that the decline was mainly associated to their ventures with Sun Bets and Luxbets which was a failure. The lose of money, reputation, law suits against Sun Bets only burnt a deeper hole in Tabcorp’s wallets and with Tatts Group merge, saved them before any further issues arise. The question is that keeps running through my mind is, what would happen if Tabcorp failed to merge with Tatt’s group? The only thing now is to continue analysing Tabcorp year on year to see if they’re ratios improve overtime from the merge.

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