Accounting - Analysis of Two Companes (Wcm)

In: Business and Management

Submitted By jharwood
Words 7117
Pages 29
MGSM 840 ACCOUNTING FOR MANAGEMENT
Group Assignment
Khalid Mousa 43251528
Sharmila Barua 43095135
Amarise Saini 41193814
Sheree Barbat 43216609
Alex Nicholas 43359280
Jennifer Harwood 43160816

Table of Contents | Executive Summary | 3 | Background Information | 4 | Local and Global Economic Conditions | 5 | Stock Price Movements | 7 | Summary of the Financial Statements | 9 | Analysis: Profitability | 11 | Analysis: Operating Efficiency | 15 | Analysis: Liquidity and Financial Risk | 20 | Investment Decision | 25 | Appendix 1: Financial Statements Note | 28 | Appendix 2: SWOT | 29 | References | 31 | | | Total Word Count (excluding appendix/tables) | 5,404 |

Executive Summary
This report is an analysis of 2 companies: JB Hi-Fi and David Jones for the purpose of making a sustainable long term investment in either company.
The analysis that was undertaken includes understanding the history, current operations and differences between both companies. While both operate within the Australian retail sector, JB Hi-Fi is a speciality discount retailer of branded home entertainment products and David Jones is an upmarket department store chain with a diverse offering including cosmetics, fashion, home wares, furniture, electrical, food and toys.
To add context to the operations of both companies, analysis was undertaken to understand the retail sector within Australia as well as influences of local and global economic conditions such as the impact of the Global financial crisis, movements in the Australian dollar and consumer confidence.
The financial statements for both companies from 2008 were examined to understand the financial performance of the companies looking at key decisions made or events that have occurred over these periods and their implications on the profitability, operating efficiency, liquidity and financial risk for both companies.
Key…...

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