Accounting and Finance Assignment

Accounting and Finance Assignment

Introduction

This is an assignment of accounting and finance which will involve financial analysis too. Financial analysis is the behavior of judging the feasibility, profitability, liquidity, solvency and stability of some projects and businesses. The main part of a financial analysis is the ratio analysis which is possible through the financial information or data of the company. Financial information is obtained through the financial statements of the firm such as balance sheet and income statement mainly. These statements play a major role when it comes to making a financial decision. The main purpose of this assignment is to give a proper ratio analysis about the company Myer Holdings Limited (MYR). We will discuss about its efficiency, profitability, liquidity, market performance and its capital structure. The financial information that is obtained from the internet and from the company's website is for the years 2010, 2011 & 2012. We will assess its performance in the years 2010 & 2011 and investor's interest in MYR.

MYR Holdings Limited

MYR being one of the largest departmental stores doesn't offer any discount and has its departmental chains all around the world. It has 60 plus stores and covers most of the regions of Australia. It is known as the foremost brand in the retail market / industry. It provides services that include clothes, foot wear and accessories for almost all age groups. It also sells cosmetics, electronic appliances, furniture and daily household necessities. MYR offerings include a distinctive range of store within store concept including Nespresso coffee and Apple in-store shops (Annual Report, 2010). In addition, MYR stores provide customer entertainment through in-store theatres. It operates around 67 stores across Australia, strategically located in metropolitan and regional areas. Myer still plans to develop its network into the worldwide surroundings and persuades itself to be more qualified and focused contrasting and its adversaries. By means of presenting the financial analytic procedures and MYR's fiscal statements, legitimate decision about the financial status, potential venture chance and financial scenario could be acquired for the external report clients or internal supervisors to modify operational decisions and investment opportunities.

MYR Performance & Aims

The main aim is to determine the value of investment for hidden investors and lenders. In appreciation of the informative data which pulls in generally the investors, the company's profitability and growth is the essential element that draws generally outside consideration. Profit is the held income which could be either paid out as dividends to the investors or reinvested to satisfy the requirement of other potential tasks. It might be quantified and described by means of financial ratios and established analytic techniques; it accentuates the probable retained funds paid to shareholders (Annual Report, 2011). There is another analytic factor that is concerned towards the efficiency of operations which verifies that maintenance facility and managerial effectiveness. The performances of operations have an influence on the cargo prices, the inventory turnover extent, liquid assets and liabilities. The profitability and the solvency ability these are the two main points for ...