Nearmap Limited

Diploma of Business & Enterprise (VBE)
Report Template
Version Date: Sept 2021

Written By : Mechelle Lane amended Craig Cameron
Filename : Report Template VBE1000
Report Title: Financial Report about Nearmap Limited
Campus Location: Liaoning University
Unit of Study VBE1000 Accounting
Name and Contact Details of Report Writer: Xi Ziyinnan
s4668038
This report was requested by: Tang Dan
Date of Submission: 18/11/2022
Version Date: September 2021

Filename : Report Template VBE1000 Page 2 of 18
Table of Contents Page Number
Executive Summary…………………………………………………………4
1. Introduction………………………………………………………………4
1.1. Brief overview ….....................................……………4

1.2. Scope & Limitations……………………………………4
1.3. Methodology…………………………………………….4
2. Findings and Analysis…………………………………………………4-9
3. Conclusions……………………………………………………………9
4. Appendices………………………………………………………..…9-17
5. Bibliography…………………………………………………………..18

Executive Summary
I analyzed Nearmap's 2021 and 2020 financial statements and compared them with its
competitor: Geospace Technologies. The following conclusion is drawn: Although Nearmap
is not optimistic in terms of financial situation, I believe it a potential stock with great market
prospect according to its core technology and its goal in line with the Global Goals.
Nearmap is worth investing in, but with certain risk.
1. Introduction
1.1. overview of purpose
By analyzing the data of Nearmap in 2021 and 2020 and comparing it with Geospace
Technologies, this report aims to conclude whether Nearmap Limited is worth investing
in.
1.2. Scope & Limitations

Scope: This study examined the data of Nearmap Limited in 2020 and 2021
respectively. The financial statements of Nearmap's competitor, Geospace
Technologies 2021, are also available.
Limitations: Some data is still unavailable due to confidentiality or personal ability,
which may result in limited data sources for the report. In addition, this
report only analyses the five ratios of Nearmap, which cannot fully
analyse the economic situation of Nearmap.
1.3. Methodology
The report takes two approaches. One is ratio analysis, calculating the ratio of
corporate financial data. The second is comparative analysis, which compares
Nearmap horizontally with Geospace Technologies, another company in the same
industry, and analyzes Nearmap2020 and 2021 data vertically.
2. Findings & Analysis
Why did you choose this Company?

Nearmap Ltd, which was listed on the Australian Stock Exchange in 2007, is a leading provider of
cloud-based geospatial information services and an innovative location intelligence company. In
June 2021, Nearmap was named one of Fast Company's Ten Most Innovative Companies.
Nearmap's working team has always benefited from a strong and united spirit, ensuring a sound
marketing strategy and a driving force for future growth. In addition, Nearmap initially set targets 11
and 13 of the Global Goals as targets. The goal of Nearmap for Good is to help shape the world we
live in by focusing on the company's sustainability efforts. In short, I think Nearmap is a company
that has mastered the core technology, has a good development prospect and has a sense of
social responsibility, so I choose it.
Information Required Your Answer Referenced

supporting
documentatio
n to be
included at
the end of
per work requirement your report
Name of your company and Nearmap Ltd (ASX: NEA) Appendix 1
ASX code
What do you know about Nearmap is an industrial company. By providing
this company businesses with instant access to high-resolution aerial
imagery, city-scale 3D data sets and integrated
geospatial tools, Nearmap gives companies the tools to
scale quickly and put their most important initiatives to
work.
Number of shares $5,000/$1.98= 2525(don't keep decimal places) Appendix 2
purchased up to $5,000
using the closing share
price as at October 4th 2022
-Show calculations)
Total amount of your 2525*$1.98=$4999.5
investment as at October
4th – Show Calculations
Latest dividend paid (date No dividend Appendix 3
and amount paid)
Name of a competitor to Geospace Technologies Corporation Appendix 4
your chosen company (you
will need this for part 2)
Using the LATEST PUBLISHED ANNUAL REPORT – which can be located on the Internet.
Name of CEO or Managing Dr Rob Newman Appendix 5
Director
Salary and number of $2,574,753 Appendix 6 and 7
shares of CEO or 13043
Managing Director
Profit/Loss after tax for the Loss: $18,820,000 Appendix 8
full financial year –
consolidate figures
Total of Assets – $239,679,000 Appendix 9
consolidated figures
Review the United Nations This is the link to the United Nations 2030 Agenda for
2030 Agenda for Sustainability Development:
Sustainability Development. https://sdgs.un.org/2030agenda
There are 17 Sustainability
Development Goals Nearmap has initially adopted two goals:
(SDG).Discuss if your Sustainable Cities and Communities (Goal 11) and
company is adopting any of Climate Action (Goal 13). Appendix 10
these SDGs Nearmap has also committed to Pledge 1%. The
Company has pledged 1% of product to support
initiatives aligned with the adopted UN SDGs and
has pledged 1% of time by introducing 2.5 days of
paid volunteer leave per year.
Nearmap looks forward to implementing both
initiatives in FY22 and outlining the impact of
these initiatives on the environment and society
in future

Appendix with
supporting
Information Required documentatio
per work requirement Your Answer n
What is the closing ASX200 6699.30 Appendix 11
index on October 4th 2022?
What does the ASX200 Similar to the All-Ords index, but it
represent? measures the changing total value of the
top 200 companies listed on the ASX. It’s
an index value---not a dollar amount
From an investor’s point of view, A share represents an investors ‘share’ of
briefly explain: the ownership of a publically listed
1. what a share is company.
2. one advantage of being a Advantage: As the owner of a part of the
shareholder and company, being a shareholder gives you
3. one disadvantage of being a the power to influence the company’s
shareholder decisions that can potentially impact the
value of your shares.
Disadvantage: After becoming corporate
shareholders, shareholders' earnings are
directly related to the operation of the
enterprise, which will bring the risk of
financial loss to investors.
Briefly explain the tax 1. From a taxable income perspective,
implications of being a owning shares means that the dividends
shareholder from: they provide will form part of the
1. an income point of view and shareholders' assessable income.
2. a capital gains tax point of 2. Capital gains are taxed based on
view. whether the asset is held for a short or long
time. Short-term (holding capital for less
than one year) capital gains are taxed as
ordinary income for the year. Long-term
capital gains are usually taxed at the lowest
rate except for tax-advantaged accounts.
In relation to investing in shares, Return on investment is a simple ratio that
briefly explain: divides the net profit (or loss) from an
1. what does the term Return investment by its cost and used to
on Investment means and understand the profitability of an
2. what is the significance of investment. It is one way of relating profits
the term Return on to capital invested.
Investment ROI is most useful to your business goals
when it refers to something concrete and
measurable, to identify your investment's
gains and financial returns.
Gain/Loss on investment in your $2.07*2525=5226.75 Appendix 12
chosen company Gain: $5226.75-$4999.5=$227.25
If you chose to sell your share

on November 4th2022, would
you have made a profit or a loss
on your investment? Use the
closing price for calculations
Please provide your calculations

and all supporting
documentation.
Chart the weekly movements of Appendix 13

the ASX200 from October 4th
2022 to November 4th 2022
You will need to attach this in

the appendix.
Explain one reason for one On November 1st the RBA raised the Appendix 14
fluctuation in the ASX200 graph. official cash rate by 0.25%. The rise of
You will need to provide interest rate can attract more foreign
supporting documentation. investors and greatly increase the demand
for national currency, thus leading to the
rise of ASX200 index
Explain one reason for one On November 1st the RBA raised the Appendix 14
fluctuation in the ASX200 official cash rate by 0.25%. The rise of
graph. You will need to interest rate can attract more foreign
provide supporting investors and greatly increase the demand
documentation. for national currency, thus leading to the
rise of ASX200 index
Reference to the Appendix

Consolidated figures with supporting documentation
Total Revenue / Sales 2021: $113.4million Appendix 15
2020: $96.7million
Interest Expense 2021: $273,000 Appendix 16
2020: $307,000
EBIT(Earnings before 2021: $24,309,000 Appendix 17
2020: $9,071,000
Interest and Income
Tax)
Income Tax Expense 2021: $3,635,000 Appendix 18
2020: $386,000
Total Expenses 2021: $134,748,000 Appendix 19
2020: $134,464,000
Net Profit Before Tax No profit in 2021 Appendix 20
Loss before tax: $22,455,000
Current Assets 2021: $159,178,000 Appendix 21
2020: $61,516,000
Current Liabilities 2021: $79,943,000 Appendix 22
2020: $67,680,000
Total Liabilities 2021: $97,025,000 Appendix 22
2020: $89,904,000
Total Equity 2021: $142,654,000 Appendix 23
2022: $56,748,000
 Profitability
Cash flows from operating activities

Cash flow to sales Ratio= ————————————————— *100
Sales Revenue
31,044 12,088
Nearmap (2021): —————*100 = 27.37% Nearmap (2020): ————*100 = 12.5%
113,431 96,714
Geospace Technologies (2021): 7.56%
To start with, the cash flow to sales ratio reveals the ability of a business to generate cash flow
in proportion to its sales volume. (Accountingtools, 2022) In general, the ratio increases as
sales increase. The cash flow to sales ratio of Nearmap rose from 12.5 percent in 2020 to
27.37 percent, which means that which means companies are better able to turn sales into
cash and their sales increased in 2021. By comparison, Geospace has less than a 10% ratio.
 Stability/Activity
Sales Revenue
Asset turnover ratio= ———————————*100
Average total assets
113,431 96,714
Nearmap (2021): ———————*100 = 58.72% Nearmap (2020): —————*100 = 63.01%
193,165.5 153,482
First, the asset turnover ratio measures the value of a company's sales or revenues relative to
the value of its assets. (Investopedia, 2022) Compared to 2020, Nearmap has a slight decrease
in capital turnover. In 2021, Nearmap is only about 4% closer to Geospace. This suggests that
the two companies are similarly efficient at generating revenue from their assets.
 Liquidity
Current assets
Current Ratio= —————————
Current liabilities
159,178 61,516
Nearmap (2021): ————— = 1.99 Nearmap (2020): ———— = 0.9
79,943 67,680
Geospace Technologies (2021): 3.94
The current ratio is a liquidity ratio that measures a company’s ability to pay short-term
obligations or those due within one year. (Investopedia, 2022) Nearmap's current ratio has
increased by about 1% from 2020 to 2021. That's a 2% gap to Geospace. This indicates that
Nearmap is slightly deficient in maximizing current assets on the balance sheet to meet current
liabilities and other payables.
 Capital Structure
Total Liabilities
Debt Ratio= ————————*100
Total Assets
97,025 89,904
Nearmap (2021): —————*100 =40.48% Nearmap (2020): ————*100 = 61.3%
239,679 146,652
A company can consider its debt ratio formula as an indicator of an organization's overall
financial health. (Indeed, 2022) Due to Nearmap's recent foray into North America, the gearing
ratio in 2021 is lower than in 2020, but still around 40%. Compared with Geospace, which only
has 13.1%, Nearmap indicates that it has a higher ability to utilize capital and has less risk for
investors.
 Market Performance
Current market price
Price earnings Ratio: ———————————
Earnings per share
1.88 2.32
Nearmap (2021): ————— = 0.48 Nearmap (2020): ————— = 0.29
3.88 8.14
Geospace Technologies (2021): 8.43
The Price Earnings Ratio (P/E Ratio) gives investors a better idea of the company's value.
(CFI, 2022) Nearmap is struggling to gain market share in North America and is facing stiff
competition. As a result of investing in growth, Nearmap's margins have come under pressure
and as a result, its price-to-earnings ratio has fallen significantly behind Geosapce. But it will
help Nearmap generate strong revenue growth, and if the investment continues to pay off, the
stock will appreciate significantly.
3. Conclusion
Through this report, we can confirm that Nearmap is outstanding in terms of its ability to
convert sales into cash, its ability to generate income from assets and its debt capacity.
However, as the company is expanding its industry and entering the North American market in
2021, its value is at a disadvantage. But if Nearmap expands its use case and continues to pay
off, the stock could take off. So I come to the conclusion that Nearmap is a company that is in
a low stage but has great potential and is worth investing in.
4. Appendices
Appendix 1:
Appendix 2:

Appendix 3:
Appendix 4:
Appendix 5:
Appendix 6:
Appendix 7:
Appendix 8:
Appendix 9:

Appendix 10:
Appendix 11：

Appendix 12
Appendix 13:

Appendix 14:
Appendix 15:
Appendix 16:
Appendix 17:

Appendix 18:
Appendix 19:
Appendix 20:

Appendix 21:
Appendix 22:
Appendix 23:

5. Bibliography
1. Accountingtools, 2022. Cash flow to sales ratio. [online] Available at: <Cash flow to sales ratio
— AccountingTools> [Accessed at 17 November 2022]
2. Investopedia, 2022. Asset Turnover. [online] Available at: <Asset Turnover Ratio Definition
(investopedia.com)> [Accessed at 17 November 2022]
3. Investopedia, 2022. Current ratio. [online] Available at: <Current Ratio Explained With Formula and
Examples (investopedia.com)> [Accessed at 17 November 2022]
4. Indeed, 2022. Debt ratio formula. [online] Available at: <What Is the Debt Ratio Formula? (Definition
and Example) | Indeed.com> [Accessed at 17 November 2022]
5. CFI, 2022. Price earnings ratio. [online] Available at: <Price Earnings Ratio - Formula, Examples
and Guide to P/E Ratio (corporatefinanceinstitute.com) > [Accessed at 17 November 2022]


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Nearmap Limited

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Diploma of Business & Enterprise (VBE)

Version Date: Sept 2021

Campus Location: Liaoning University

Unit of Study VBE1000 Accounting

Name and Contact Details of Report Writer: Xi Ziyinnan

This report was requested by: Tang Dan

Date of Submission: 18/11/2022

Version Date: September 2021

1.1. Brief overview ….....................................……………4

2. Findings and Analysis…………………………………………………4-9

Version Date: September 2021

1.2. Scope & Limitations

2. Findings & Analysis

Why did you choose this Company?

Information Required Your Answer Referenced

Version Date: September 2021

If you chose to sell your share

Please provide your calculations

Chart the weekly movements of Appendix 13

You will need to attach this in

Reference to the Appendix

Cash flows from operating activities

Geospace Technologies (2021): 7.56%

Geospace Technologies (2021): 54.09%

Geospace Technologies (2021): 3.94

Geospace Technologies (2021): 13.1%

Geospace Technologies (2021): 8.43

Version Date: September 2021

Version Date: September 2021

Version Date: September 2021

Version Date: September 2021

Version Date: September 2021

Version Date: September 2021

Version Date: September 2021

Version Date: September 2021

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