Billabong Case Study Managing Change HISTORY ← Australia’s largest surfwear manufacturer‚ annual sales = $680 million (2003/04) ← Core business = marketing‚ distribution and retail of clothing‚ accessories and eyewear ← Sells products under other brand names including: • Element (Skate wear) • Von Zipper (sunglasses) • Honolua Surf Company ← Founded in 1973 – by Gordan and Rita Merchant ← Reputation = supplying
Premium Marketing International Financial Reporting Standards Finance
References: 1. Reference for Business Company 2014 http://www.referenceforbusiness.com/history2/89/Billabong-International-Ltd.html viewed 8th November. 2. Katie Smith 2013‚ “retail focus: where did billabong go wrong” EDITD’s blog‚ April 2013‚ viewed 8th November‚ http://editd.com/blog/2013/04/retail-focus-billabong/ 3. Philip Kotler and Kevin Lane Keller 2006‚ ’What is geographic segmentation ’. Marketing Management. Prentice Hall‚ viewed 8th November.
Premium Marketing
Billabong Financial Review over 2012 & 2013 A. Current Ratio Part 1: ! ! ! ! ! ! Current ratio = Current assets Current liabilities 2012 Current ratio = 898.92 611.44 = $1.47 2013 Current ratio = 622.37 612.50 = $1.02 Part 2: The current ratio is a measure of a business’ liquidity‚ calculated by taking total current assets and dividing by total current liabilities. The 2013 current ratio for Billabong has dropped $0.45 since 2012. It is generally unwise for a business
Premium Generally Accepted Accounting Principles Income statement Balance sheet
Billabong International Ltd. markets apparel and accessories designed for surfing‚ skateboarding‚ and snowboarding. The company offers more than 2‚200 products‚ including Board shorts; t-shirts; swimwear; shorts‚ pants‚ and jeans; fleece tops; "jumpers" or pullover sweaters; jackets; backpacks; sports eyewear; and many other products‚ primarily for young men and women. Billabong products are sold through licensees or directly from the company and are available in extreme sports shops in over 60 countries
Premium Australia Surfing Retailing
1. Explain why exchange rates have been so volatile in recent years/ What are the implications of this volatility for companies like Billabong? There are a large number of influences at work in the foreign exchange markets. The most obvious are shifts in fundamental demand for a currency that reflects the outlook for the economy. For example‚ if Australia is exporting more goods and services‚ foreign buyers will need to buy Australian dollars to pay for them. That will put upward pressure on the
Premium Foreign exchange market Inflation Exchange rate
Risk Management Policy Billabongs’ activities are exposed to a variety of financial risks‚ these include; market risk (including foreign exchange risk and cash flowinterest rate risk)‚ credit risk and liquidity risk. To minimize potential adverse effects on the financial performance of Billabong‚ the overall risk management program focuses on theunpredictability of financial markets (Billabong Annual Report‚ 2011). The framework is based around the following risk activities: * Risk Identification:
Premium Risk management Risk Dividend
BILLABONG INTERNATIONAL LTD Completed as part of the requirements for ‘Corporate Finance’‚ 25765 Contents 1.0 Introduction 1 2.0 Executive Summary 1 3.0 Capital Structure 2 3.1 Types of Funding Utilised by Billabong 3 3.2 Recent trend in the level of leverage 3 3.3 Capital expenditure and financing: 5 3.4 Capital Structure of Similar Firms 6 3.5 Company Characteristics and Leverage policy 7 3.5.1 Taxes 8 3.5.2 Trade off Model 8 3.5.3 Pecking Order of Financing Choices 9 3.5.4 Signalling
Premium Corporate finance Dividend Capital structure
Profit for the year Loss/(Profit) attributable to minority interest Profit attributable to members of Billabong International Limited Earnings per share for profit attributable to the ordinary equity holders of the Company Basic earnings per share Diluted earnings per share 41 41 The above income statements should be read in conjunction with the accompanying notes. Billabong International Limited 2007-08 Full Financial Report Page 32 Balance sheets As at 30 June 2008
Premium Balance sheet Generally Accepted Accounting Principles Asset
COMPANY PROFILE Billabong International Ltd. REFERENCE CODE: 41BBAC6B-451C-40A8-BD4C-8862EB1A77EA PUBLICATION DATE: 6 Apr 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Billabong International Ltd. TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts..................................................
Premium Retailing Minimum wage
Billabong Financial Review Review of Billabong Financial information for 2005-2008 Note: tables are shown in $’000s (excluding $ values expressed with decimal places) Note: revenue is expressed and revenue from the sale of goods. Question 1 – Revenue and Revenue Margin 2005 2006 2007 2008 Total Revenue $ (From the sale of goods) $840‚701 $1‚018‚227 $1‚222‚911 $1‚347‚618 % Change from previous year 24.60% 21.12% 20.10% 10.20% % Change from base year (2004) 24.60% 50.91% 81.24% 99.73%
Premium Financial ratios Financial ratio Generally Accepted Accounting Principles