In groups of one (minimum) and two (maximum):
1. Download the Annual Financial Statements from Harvey Norman Holdings Limited and JB Hi-Fi Limited corporate websites for the year ended 30 June 2017 websites and answer the following questions on both companies:
a. Critically evaluate short term Liquidity using three relevant ratios:
b. Critically evaluate the Profitability using three relevant ratios:
c. Critically evaluate the Financial Stability/Solvency using three relevant ratios:
Please note that you are required to interpret and discuss the ratio results and not just calculate them.
Based on the calculations above, make a formal report that has the following structure:
· Title Page
· Executive Summary
· Table of Contents
· Introduction
· Company Profile -Harvey NormanHoldings Limited
· Company Profile -JB Hi-Fi Limited
· Measurement of short term liquidity for Harvey Norman Holdings Limited and JB Hi-Fi Limited. (This should make up approximately 20% of the words.)
· Measurement of profitability for Harvey Norman Holdings Limited and JB Hi-Fi Limited (This should make up approximately 20% of the words.)
· Measurement of solvency for Harvey Norman Holdings Limited and JB Hi-Fi Limited. (This should make up approximately 20% of the words.)
· Any recommendations based on your analysis of the above ratios
· Additional information that may be useful for further analysis
· Any limitations
· References
You are required to calculate the ratios as well as analyse the ratios. In performing an analysis, you are required to compare this year's ratios to last year's ratios, as well as Harvey Norman Holdings Limited ratios to JB Hi-Fi Limited ratios.
2. You are required to present your findings on either Solvency, Profitability OR Liquidity to the class. You will be informed which category your group has been allocated.
Each member of the group must speak for a minimum of three minutes. You are required to explain and interpret the ratios for the category and give a final conclusion.
Your analysis should be in-depth and show that you have done some research in towhy the ratios are good or bad, or have improved or deteriorated.