Billabong Financial Report

Essay by silvercyberUniversity, Bachelor'sD, November 2014

download word file, 3 pages 0.0

Case Study Report Introduction The result of this report supported with the quantitative analysis from the Billabong company annual report. To provide the best information to the current shareholder, this report supported with relationship between overall evaluations of the company. Unfortunately, to give the best result of whether the shareholder should continue invest the company, the shareholder should consider other types of performance measures. Body This part of the report will provide a brief evaluation of the profitablity, liquidity, asset efficiency and gearing of the company. The profitability ratios of the company used to assess a business's ability to generate earnings as compared to its expenses and costs in a period of time. (Investopedia, n.d.) Unfortunately, the company profit margin is and the return on equity ratio is decreasing and only getting better in 2013 (Appendix 1.0). The company liquidity defined as the ability of the company to convert an asset to cash quickly (Investopedia, n.d.). Lately, the current ratio, quick ratio, cash flow has decrease over the past 4 years (Appendix 2.0). The asset efficiency ratio used to analyze how well a company uses its assets and liabilities internally (Investopedia, n.d.). The calculations shows, the asset turnover ratio, receivables turnover, and inventory turnover has decreased over past 4 years (Appendix 3.0). The capital structure ratios show how a firm finances its overall operations and growth by using different sources of funds (Investopedia, n.d.). According to the debt to assets and equity ratios both are increasing over the past 4 years (Appendix 4.0). Conclusion The result of the evaluation above has clearly stated that the performance of the company is decreasing over the past 4 years. Firstly, the company is less profitable. This problem arises from many factors such as operation and marketing, etc. Secondly, the company has unable to...