Analysis about the financial performance of Billabong International Limited
Executive summary
Analyzing and discussing the financial reports is quite important for stakeholders of a company to know how the company performed in the past fiscal years and the financial reports usually contain at least five parts of income statements, balance sheets, statements of changes in equity, cash flow statements and notes to the financial statements. In the following part of the report, the analysis of the financial reports of Billabong International Limited in 2008 and 2009 will be conducted on the ba of the profitability, efficiency, liquidity, gearing and investment. To have a deeper understanding about tho five parts of the financial performance, some uful and relevant financial ratios will be introduced and discusd. According to the results of financial ratios, there was slight decrea in the profitability, efficiency and gearing from 2008 to 2009 but there was improvement in the liquidity and in the confidence of the future development of the company from the investors and the stock market.
Content
Executive …………………………………………………………………………2
Introduction ………………………………………………………………………4
Analysis and discussion…………………………………………………………...5
Profitability ……………………………………………………………………….5
Gross profit margin………………………………………………………………..5
Net profit margin…………………………………………………………………..5
Return on equity…………………………………………………………………...5
Return on asts……………………………………………………………………5
Efficiency …………………………………………………………………………6
Ast turnover……………………………………………………………………..6
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Inventory turnover…………………………………………………………………6
Liquidity……….…………………………………………………………………..6
Current ratio………………………………………………………………………..6
Quick ratio本能2致命诱惑………………………………………………………………………….6
bright什么意思Gearing……………………………………………………………………………..7
完美小姐进化论 动漫Debt ast ratio……………………………………………………………………..7
Debt equity ratio……………………………………………………………………7
matsuyamaInvestment ratios…..……………………………………………………………….7
EPS………………………………………………………………………………….7你见或不见我
P/E ratio…………..…………………………………………………………………7
Findings……………...出来英文…………………………………………………………......9
Limitations ………………………………………………………………………...10
闹腾
Recommendations……………………………..……………………………….….11
Reference …………………………………………………………………….…....12
Bibliography………………………………………………………………….…....13
Appendix………………………………………………………………………......14
Introduction
Billabong International Limited (BIL) focus on the marketing, distribution, wholesaling and retailing of such products as apparel, accessing, eyewear, wetsuits and so on. It has 4,500 staff or so worldwide and has been listed on the Australian Securities Exchange. It operates in more than 100 countries and there are about 10,000 doors operating all over the world. Therefore, the main revenue comes from the wholly-owned operations in such areas as Australia, North America, Europe, Japan and New Zealand.
In this report, firstly, the discussion and analysis about the ratios which are ud to reflect the financial condition of BIL in terms of profitability, efficiency, liquidity, gearing and investment; condly, the implications of findings and the possible reasons behind the results are given; thirdly, bad on the former analysis and discussion, uful recommendations are made to BIL and finally so that reports reaches the conclusion.
Analysis and discussion
英语四级听力训练Profitability
Gross profit margin
Gross profit margin is an indicator ud to asss the profitability of a company, the indicator revealing the proportion of money left over from revenues after taking the cost of goods sold into consideration and rving as the source of paying additional expens and future savings (Berman, Karen, 2006). The gross profit margin ratio was 0.55 for the fiscal year of 2008 and was 0.53 for the year of 2009. There was not significant changes in the profitability in terms of this ratio.
Net profit margin
Net profit margin is an indicator showing how many profits bad on each unit of revenue. It is also an indicator in terms of profitability and the higher the better. The net profit margin in BIL for the fiscal year of 2008 was 0.13 and was 0.09 in 2009, showing slight decrea in the profitability.
Return on equity
Return on equity is an indicator of profitability and reflects how many profits can be made bad on each unit of capital invested by shareholders. It is the net income divided by shareholders’ equity and is for the full fiscal year before dividends are paid to common stock holders and after dividends are paid to preferred stock holders (boogeymanFrancesca Cornelli, David Goldreich, 2001). The return on equity for BIL was 0.22 in 2008 and 0.12 in 2009, verifying the slight decrea in the profitability revealed by former two ratios.
