Myer Holdings Ltd. and Harvey Norman Holdings Ltd

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This report sets out a detailed ratio analysis of the financial statements of Myer Holdings Ltd. and Harvey Norman Holdings Ltd. by comparing the ratios of both companies for the years 2011 and 2012 …

Introduction

by comparing the ratios of both companies for the years 2011 and 2012 individually and among each other in order to arrive at recommendations regarding the best entity for making investments. Myer Holdings Limited is one of the largest department stores groups of Australia being in the fashion industry since last 100 years. However, Harvey Norman Holdings is involved in the sale and distribution of goods under Harvey Norman brands via different independent franchises. The paper also outlines the limitations in the ratio analysis of the financial statements of these Companies. Table of Contents Executive Summary 2 Table of Contents 3 1.0 Introduction 4 1.1 Ratios Analysis 5 1.1.1 Liquidity Ratios Analysis. 5 1.1.2 Leverage Ratios Analysis. 6 1.3 Recommendation and Conclusion 11 References 12 1.0 Introduction This report outlines the ratio analysis of the financial statements of Myer Holdings Limited and Harvey Norman Holdings Limited for the periods 2011 and 2012. The paper also highlights the limitations of evaluations using ratios analysis. As outlined in the Harvey Norman corporate website the Harvey Norman Holdings Limited is involved in giving the franchise agreements to independent business entities for the supply of household and office equipments under the banner of Harvey Norman. It deals in a wide variety of goods and the business is spread over many geographical regions. ...
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