This website uses cookies to ensure you have the best experience. Learn more

Financial Statement Analysis

1138 words - 5 pages

Accounting Quality
At the core, the annual reports must reflect a true and fair view of the company’s performance. However, the quality of the results presented is equally important. That is, the earnings reported must be reflective of the future earnings capacity of the company. This will enable investors to understand the core earnings of the firm and help in forecasting the performance of the company. If earnings is of a poor quality, it implies that the earnings are not a good indicator of the company’s performance. (Penman, 2013) The Australian corporate environment receives support from legislation and common law to ensure companies are compliant and providing timely and accurate ...view middle of the document...

9658 | 0.9520 | 0.9297 | 0.9496 | 0.9517 | |
net sales/net accounts rec | 1.2147 | 1.4414 | 1.3683 | 1.2403 | 1.3433 | |

Table No. ____ (INSERT TABLE NO)
Examining these ratios over the 5 year period indicates that during 2012-13 that HVN may have aggressively recognized revenue or underestimated returns & credit losses, but overall, the general interpretation is that HVN is not manipulating its sales.

* Change in Net Operating Assets (NOA) is expected to be due to normal growth of the business. From 2010 to 2014, HVN’s NOA has increased from $2.5 billion to $3.05 billion. The profit margin (PM) fell from 18.1% in 2010 to 15.8% in 2014, but recovered to 19.5%. This increase was complimented by an increase in the Asset Turnover (ATO) from .468 in 2013 to .485 in 2014. The increase in NOA, when examined with HVN’s profitability and ATO does not indicate any manipulation
* Depreciation and Amortization: When we compare HVN to the other major competitor in the industry, MYR, HVN’s expenses its assets over a shorter time period and this conservative approach will over time reduce the book value. However, HVN must watch out for possible gains that may arise because of this.

Depreciation Schedule : Harvey Norman VS Myer |
| | | | |
Description | | HVN | MYR |
| | | | |
Buildings | | | 20-40 yrs | 40 yrs |
Fixtures, and fittings | - | 3-12.5 yrs |
Plant and equipment, including | 3-20 yrs | 10-20 yrs |
leasehold improvements | | |

Table No. ____ (INSERT TABLE NO)

* Property Decrement (Occupancy Expenses)
Development losses in three properties and flooding at the property in Oxley, Queensland (Smarthouse.com.au, 2015) resulted in HVN reporting a decrement of about $60 million in 2013. Furthermore, property decrement of about $25 million in 2012 were one off events that impacted HVN’s core earnings. The 2013 property decrement was spread out over 4 years and the 2012 property decrement was spread out over 2 years. Smoothing out this expense is a better reflection of HVN’s expenses.

Occupancy Expenses | | | | | | |
| | | | | | | |
Description | | 2010 | 2011 | 2012 | 2013 | 2014 | ('000) |
Old (Original) | -228121 | -217637 | -242986 | -278627 | -233881 | |
New (After smoothing) | -243207.75 | -245355.25 | -245441.25 | -233366.75 | -233881 | |
Net reval for Aus properties | | | 25263 | 60347 | 9529 | |

Table No. ____ (INSERT TABLE NO)

Graph No. ____ (INSERT GRAPH NO)

Permanent Biases (TO BE UPDATED BASED ON DISCUSSIONS WITH OTHER TEAMS)
* Operating Leases

* Goodwill/Amortisation

Ratios
Based on the DuPont model...

Other Papers Like Financial Statement Analysis

Financial Statement Analysis Of Coca Cola

6958 words - 28 pages Financial Statement Analysis ACG203-CE Marianne Marchant Margaret Pesikov Sean Lenehan Jeff Braga 2 Table of Contents Questions to be answered Management Discussion & Analysis section and Miscellaneous Income Statement and Profitability Cash Flows Balance Sheet Liquidity and Efficiency Solvency 3 3 6 12 14 18 22 Relevant Documents Balance Sheet Income Statement 25 25 26 Evaluation 27 3 Questions to be

Financial Statement Essay

719 words - 3 pages purchases made and the cash flow shows all the debt the company obtained. Statement of Retained Earnings – Occurs when shareholders do not get paid the full profits from the company. Managers decide to retain some funds to use for financing, operations, research, and development and growth. Which financial statement, or statements, would be of most interest to investors? The financial statement

Financial Statement Differentiation

887 words - 4 pages In today’s society, businesses and organizations complete various financial statements that will inform management, creditors, and investors of its financial status. Corporations complete financial statements, such as the income statements, balance sheets, retained earnings statement, and statement of cash flows on a monthly or annually basis. Financial statements must indicate true, accurate, and precise information according to the rules and

Reviewer In Statement Of Financial Position

1146 words - 5 pages CHAPTER 2 STATEMENT OF FINANCIAL POSITION 1. Fran Company provided the following data at year-end: Trade accounts payable, including cost of goods received on consignment of P100,000 1,200,000 Accrued taxes payable 100,000 Customers' deposit 100,000 Herrera Company as guarantor 250,000 Bank overdraft 50,000 Accrued electric and power bills 55,000 Reserve for contingencies

Toyota Fs Abstract

293 words - 2 pages practices of TFS with the methods used are SWOT matrix, 5 forces of Porter’s and Balanced Scorecard. Based on their financial statement analysis in 2014, the gross interest income increased compared to their last financial statement analysis in 2013. Although Toyota Financial Services has a decreased in net income, it is still one of the trusted brands because of their quality service, timely support, investing in technological advancements and transparent management. Keywords: Toyota Financial Services; leasing; financing

Team Paper

522 words - 3 pages items of a financial statement over a number of accounting periods can be compared to detect emergent trends in the organization’s results and operations. On the other hand, ratio analysis is a significant technique of financial analysis that converts quantities into ratios to be compared. Current ratios can be compared to past ratios along with ratios of other companies in similar or different industries. Ratio analysis helps determine

Cashflow Statement Analysis

419 words - 2 pages provide object evaluation of overall financial situation. However, a series of simple initial data which statement of cash flow offered still not helpful for decision directly. Therefore, according to the analysis of cash flow statement, which can understand the company’s money flows in, flow out and balance situation, realize the main methods of cash flow out and where enterprises cash flows in. The cash flow statement is intended to provide

Howssdat

495 words - 2 pages of Supply and Demand B. The Firm and Industry Organization C. Measuring National Income and Growth D. Business Cycles E. The Monetary System F. Inflation G. International Trade and Capital Flows H. Currency Exchange Rates I. Monetary and Fiscal Policy J. Economic Growth and Development K. Effects of Government Regulation L. Impact of Economic Factors on Investment Markets IV. Financial Reporting and Analysis A. Financial Reporting

Week 7 Ratio, Vertical, And Horizontal Analyses Checkpoint

803 words - 4 pages Ratio, Vertical, and Horizontal Analysis CheckPoint Stacy J. McKinney XACC/280 August 10, 2012 Benjamin Strickland Ratio, Vertical, and Horizontal Analysis CheckPoint The three tools used in Financial Statement analysis include: Horizontal analysis, Vertical analysis, and Ratio analysis. While both Horizontal and Vertical analysis can be used on any of the four types of financial statements, ratio analysis compares various aspects within

Financial Analysis And Forecast Report

694 words - 3 pages Financial Analysis and Forecast Report Drexel D Brown American InterContinental University Financial Management (FINA310-1602B-02) 5/8/2016 Financial Analysis and Forecast Report Introduction In the financial aspect of accounting and forecasting many mathematical computations are utilized to form data sheets that assist managers and shareholders evaluation of the firm’s current/future financial position. Financial data is also analyzed

Pggna Account Details

755 words - 4 pages ) | | | |III |Preparing and Understanding Financial Statements : |5 |10 | | |Corporate Balance sheet, Profit and Loss Account | | | |IV |Funds Flow Analysis, Financial Statement Analysis

Related Essays

Financial Statement Analysis

2535 words - 11 pages XYZ CONSTRUCTION CO., INC. FINANCIAL STATEMENTS DECEMBER 31,20X1 SAMPLE FINANCIAL STATEMENTS Page 2 Balance Sheet Page 3 Statement of Income and Retained Earnings Page 4 Statement of Cash Flows Pages 5 - 6 Notes to Financial Statements Pages 7 - 13 ACCOUNTANTS' REVIEW REPORT FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION Schedules of Earnings from Contracts and Contract Costs Page 14

Financial Statement Analysis

372 words - 2 pages Financial statement analysis of Boston Background Profitability review ROI has increased from 19.4% in 2010 to 24.5% in 2010. Balance sheet review For the vertical analysis of balance sheets, the inventory has increased from 10.3% to 12.5%. Meanwhile, percentages of other current assets have little changes. In this case, the percentage of current assets has been raised to 46.1% in 2011, as compared to 43.3% in 2010. The percentage of

Financial Statement Analysis Study Guide

3563 words - 15 pages Financial Statement Analysis Financial Reporting & Analysis Questions Professor Mahoney Spring 2013 Chapter 1: Introduction to Financial Reporting I. Questions 2. How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied? Consistency allows for the same accounting principle from period to period. A change in principle requires

The Financial Statement Analysis Of Tick Tock

1311 words - 6 pages The report focus on the financial statement analysis of Tick-Tock during 2005 to 2007.And at the same time provides the recommendation whether to purchase Tick-Tock for $275,000 or continue looking for another business. This financial statement has been divided into three segments: profitability, liquidity and financial stability .The first part is profitability which focuses on different aspect of return on investment & evaluating operating