Posted: October 5th, 2023

Restaurant Brands New Zealand limited (RBD) and Xero Limited (XRO) analysis

Restaurant Brands New Zealand limited (RBD) and Xero Limited (XRO) analysisGrowthTurnover growth %120.00%100.00%80.00%PercentageRBD SALESXERO SALES60.00%40.00%20.00%0.00%-20.00%20112012201320142015Time (YEAR)RBD`s sales have been fluctauting having a negative mark in the year 2012. The saleshave however taken an upward trend in the last three years. Xero`s sales shoot up in theyear 2012. Ever since the sales have been decreasing as time goes by. Both companieshave a positive growth in their sales.Xero`s sales have been on the positive side. This is however different when it comes tothe net income. In 2014 the company`s net income dropped by 150%. RBD has beenfluctuating from year to year. The last two years have been on the positive growth side.ValuationRBD adjusted share price has been steady. The movements have been dismal. In fouryears the stock has only managed to move up by only four units. Xerox’s adjusted sharehas been stagnating. In 2013 the stock was at its best in the analyzed period closing at $30.4.RBD`s return on Return on Equity has been on the negative side. It hit its lowest point in2014. RBD`s Return on equity has been steady without major changes over the last 4years.Cash Flow AnalysisNet operating inflow for RBD in 2014 reduced by 20%, this is as compared to an increasein 45% in the year before. According to the annual report, this is due to the increase inoperational costs in the same period. Its operational costs have been stable over theanalyzed period except for that one year (2014).RBD investment cash flow was positive in 2013 this is due to sale of investments in theyear. In 2014 the company paid out the largest amount ever in the whole analyzed period.RBD`s financial cash flow has been on the negative side for the whole period. In 2014again the company paid out a large amount of cash.The net change in cash for all cash flow activities had been on an upward trend only todrop significantly in 2015.XRO’s operating inflow of cash has been on on the negative side increasing every year.The increase in Xero`s operating activities cash is due to the increased costs ofproduction to do research.Investment cashflow is also on the increase due to additional capital used to purchasemore equipments to curb the growing competition.Finance cash flow for FCG was positive (inflows) for the three years. The increasedinflow in 2014 was due to interest received on a facility. The business has also not beenpaying high dividends hence the reduction in outflows.All in all, the net change in cash for all cash flow activities had been fluctuating butoverall increased over the past 5 years only reducing in the last year.

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