Benefits and limitations of financial statement analysis

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Reference no: EM13936016

This is an assignment on retail company contains ratios.

The name of the company is HARVEY NORMAN HOLDINGS LIMITED

The number of words should be between 2000-2200 words.

Write a report covering the following questions:

1. What are the benefits and limitations of financial statement analysis?

2. Select a retail company listed on the Australian Stock Exchange and prepare the following ratios from the information included in the annual report
• Current Asset ratio
• Quick Asset ratio (acid test)
• Profit margin
• Return on assets
• Return on equity
• Earnings per share
• Debt to total assets ratio (gearing)

3. Comment on the results from the perspective of a prospective institutional investor (Such as a superannuation fund).
Please note the following:
• Format: Business report
• Contribution to overall assessment: 30%
• Length: 2 000 - 2 200 words
• Due date: ??
• Your work must comply with the University's General Guide for the Presentation of Academic Work.
• A useful
link: htto://federation.edu.au/ data/assets/odf file/0018/190044/2014- General-Guide-to-Writinq-and-Studv-Skills.odf.
• This is a group-assignment. Each group needs to have 2 members in it. Only if there is an odd number of students in the class is a group of 3 permissible. Please organise yourselves into groups.
• Please make sure that names and ID numbers of all group members are stated on the cover sheet of your submission.
• Ensure that full workings for your ratios are included.
• Refer to the attached marking sheet for the specific requirements.

As this is a group assignment, each member of your group is awarded the same mark. Working in groups has its pros and cons. I am sure that you will hold constructive and energetic discussions on the issues at hand. In case of any disagreements, you will be able to resolve them in a democratic and rational way. There will be times when you may have to agree to disagree with each other. Invariably different group members bring different skills to a project; it is up to you to make the best of it. I believe one can learn a lot by discussing the issues with one's colleagues.

If you happen to find your group members are "not pulling their weight" or there are problems with any member's commitment, then please try to resolve those issues amongst yourselves. Open and honest communication always helps. If you are unable to resolve these issues, you are most welcome to see me and we will try to sort out the problems together. Do this as soon as possible and certainly before the due date.

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Reference no: EM13936016

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