Contents
Executive summary 2
Introduction 3
Strategy analysis 5
Health and safety 5
5
Operational and financial delivery 6
Growth and innovation 6
People 6
Communities and environment 7
Customers and markets 7
Social strategy 8
Competitor Analysis 9
Corporate governance 10
Rio Tinto Australia and Corporate Governance 11
Financial analysis 13
Rio Tinto, Consolidated Income Statement 13
Rio Tinto Consolidated Statement of Financial Position, Liabilities and Stockholders' Equity 16
Rio Tinto, Consolidated Statement of Cash Flows 19
Rio Tinto, profitability ratios 23
Summary and Conclusion 24
References 26
Description
The main purpose of this report is to give an insight analysis of the Rio Tinto company in Australia and define the scope of operation of the company. The report mainly focuses on the analysis of Rio Tinto and evaluates the opportunities, market innovations and the selection of appropriate information which can be used to make effective investment decisions. This report also covers information on the company’s structure, areas of operation, products and services offered by the company. It also covers the SWOT analysis of the firm and the key ratios that helps in gaining an in-depth insight into the company’s performance. From the investigations conducted, Rio Tinto is a world leading international mining group which has a huge per capita income. It is involved in all the mining stages which include metal and mineral production from the time it is extracted from the earth’s crust to the time the mineral is ready to be used after processing. The company is involved in the production of aluminum, copper, uranium, gold, diamonds and most of the industrial minerals. The company’s presence can be felt across more than 50 countries spread across different continents. Most of the company’s assets are located in Australia and partly in North America. The company delivered a knock-out USD 38.1 billion bid for the Canada’s Alcan in 2007. The company’s management sets the company high above other players in the market with an impressive track record of profit growth. This has been achieved through the use of high quality assets and lowering of the operations costs. The management has also applied new technologies which have contributed towards improving the services being offered by the company. The investigations conducted covered several areas of the company’s operations that also included the company’s financial analysis and competitor analysis. The research of this report included a thorough review of the existing literature and some information from the web sources. The literature gathered for the report was also obtained from the company’s annual reports that also had a wealth of resources indicating the company’s performance for the last few years. The major findings from the research indicate that the company’s performance for the last few years has been very good as the company rates above most of its competitors. The company has a wide range of customers among them are Asian iron ore and the coal contracts with steel manufacturers. The company has not run short of competitors. Some of the competitors that pose a great threat to the operations of the company include: BHP Billiton, CVRD, Anglo American and Alcoa. While it is clear from the report that the company’s performance has been good for the last few years, it is recommended that the company should seek out ways of automating its process activities and information handling system so as to improve its efficiency and productivity.