Financial Statement Analysis
Executive Summary:
Financial statement analysis is a process which examines past and current financial data for the purpose of evaluating performance and projecting future risks and potential of a company.
Financial statement analysis is used by various people and companies for different reasons, e.g. investors, creditors, lending officers, managers, employees and many other parties who rely on financial data for making economic decisions about a company.
The objective of this David Jones financial statement analysis is to identify the company 's performance issues, to provide suggestions and recommendations by employing the Ratio Analysis method and analysing Profitability, Efficiency, Short and Long term Solvency, and by using Market Based Ratios.
Table of Contents
Report to the Management of David Jones Limited .................................................. 3
Profitability ................................................................................................................ 3
Efficiency .................................................................................................................... 5
Short-term Solvency .................................................................................................... 6
Long-term Solvency ................................................................................................... 7
Market Based Ratios .................................................................................................. 7
Performance Issues .................................................................................................... 8
Conclusions ................................................................................................................. 9
References .................................................................................................................. 10
Appendix A
Financial statement analysis is a process which examines past and current financial data for the purpose of evaluating performance and projecting future risks and potential of a company.
Financial statement analysis is used by various people and companies for different reasons, e.g. investors, creditors, lending officers, managers, employees and many other parties who rely on financial data for making economic decisions about a company.
The objective of this David Jones financial statement analysis is to identify the company 's performance issues, to provide suggestions and recommendations by employing the Ratio Analysis method and analysing Profitability, Efficiency, Short and Long term Solvency, and by using Market Based Ratios.
Table of Contents
Report to the Management of David Jones Limited .................................................. 3
Profitability ................................................................................................................ 3
Efficiency .................................................................................................................... 5
Short-term Solvency .................................................................................................... 6
Long-term Solvency ................................................................................................... 7
Market Based Ratios .................................................................................................. 7
Performance Issues .................................................................................................... 8
Conclusions ................................................................................................................. 9
References .................................................................................................................. 10
Appendix A
References: 3. http://media.corporate-ir.net/media_files/IROL/23/231681/Myer_AR12_FINAL.pdf (Myer Annual Report 2012)