Ratio analysis is done to compare the performance of FHL with its major competitor, Harvey Norman. Profitability, Asset efficiency, Liquidity, Capital structure, and Market performance ratios are calculated for both the companies and performance of the two companies is analyzed in the light of these ratios. Some of the limitations of the analysis are identified, conclusions are drawn and recommendations are given on the basis of the analysis done on FHL.
Financial statements include at least two accounting statements that are prepared by a company at the end of its accounting period. These two include Income statement and balance sheet and these statements of Fantastic Holdings LTD (FHL) are analyzed in this report.
Financial statement analysis of a company is extremely important for a company so that it can reflect upon performance of the company and can add meaning to the figures of the financial statements. Financial statement analysis involves evaluating three characteristics: profitability, liquidity and solvency. A short term lender will be interested in the liquidity of the company which measures the efficiency of the companies to pay their obligations when they are due. A long term creditor would assess the profitability and solvency of the company which measures the long term standing of the company. Hence financial statement analysis is extremely important for the company as well as for the users of the financial statements.
Comparisons can be made on the intra company basis, industry averages and inter company basis. Vertical analysis is done to make intra company comparisons and ratio analysis is done to make inter company comparisons. In this report, both comparisons are made. Intra company analysis is done using vertical and trend analysis and inter company analysis is done through ratio analysis of Fantastic Holdings Ltd and Harvey Norman Holdings Ltd. Through the analysis, conclusions will be drawn regarding the performance of FHL from ...
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(“Finance report Assignment Example | Topics and Well Written Essays - 7500 words”, n.d.)
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(Finance Report Assignment Example | Topics and Well Written Essays - 7500 Words)
“Finance Report Assignment Example | Topics and Well Written Essays - 7500 Words”, n.d. https://studentshare.net/miscellaneous/402908-finance-report.
Smith – Brown in West Yorkshire – Jool’s Furniture Industries Ltd. The main purpose of this report is to identify and analyse the current position of the company and to develop possible solutions that the company can adopt to improve the current position.
However, it cannot be used for specific projects because each project has it own operating risk. b) Book weights should be used to calculate WACC because the market value is subjective and changes regularly. c) Current (marginal) cost rates should be used because WACC is used mainly to make investment decisions and these decisions depend on expected future cash flow from projects in relation to the cost of new capital.
All the recorded financial transactions should be able to be measured in monetary terms. The interpretation of the financial statements has a considerable influence on the business and its works. Accounting information should be modified in such ways so that it can be interpreted by the management to draw conclusions for the ultimate purpose of decision making.
This report has been developed as a financial training tutorial for medium enterprises in the local area. Therefore, main objective of this report is to make the participants clear understand about one of the most important areas business finance i.e. source of finance.
The marine industry basically comprises of the following sectors: Services – mainly concerned with the shipping industry and tourism Resources- mainly concerned with fishing industry Manufacturing Industry- It is concerned with manufacture of equipments for shipbuilding and oil and gas industries.
Tesco’s major product line is grocery. The company started with grocery and gradually introduced other product categories in the store. They started private level brands along with other brands to be sold in their stores.
Tesco deals in different categories. Presently, the
However there has been a decline in the shipping industry since 1974. This can be primarily attributed to cyclical developments which got worse with the structural changes in the shipping industry and the world trade that made adjustments a time consuming and complex process.
However, the company’s cost of sales in the current year has increased with the increase in turnover. Although, the increase in cost of sales is $1 million, this may be due to several reasons, including increased raw material prices and
Sainsburys Plc., 2013). The three business segments are operated through different store formats like supermarket and convenience stores, Sainsbury’s Bank joint ventures and The British Land Company Plc. joint venture and
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