Financial Analysis

Topics: Balance sheet, Financial ratios, Financial ratio Pages: 14 (4167 words) Published: July 12, 2013

David Jones Limited
Date: 16th October, 2009

Dear Users,
It is honor to transmit to you the Financial Statements Analysis Report of David Jones Ltd for Fiscal Years from 2004 to 2008.

This financial analysis report bases on analyzing the historical data of David Jones Ltd. financial reports from FY04 to FY08.

The purpose of this report is presenting the existing financial conditions and performance of David Jones Ltd. and forecasting the foreground of this company. Meanwhile, providing requisite information to users in order to help them to adequately and timely understand the company and make decisions.

Yours sincerely,
Financial Analyst

The purpose of this financial statement analysis report is reflecting the existing financial conditions of David Jones Ltd for the inner and external users. It bases on historical data analysis that in order to help users understand the firm perfectly and factually moreover forecasts the development of the firm logically which can help the inner users to make decisions and improve the performance meanwhile the external users can realize the firm deeply and make investments.

The financial analysis report collected all data basic from the financial reports of David Jones Ltd. from Fiscal Years 2004 to 2008 and then Microsoft Excel was used to transfer the mathematical data to valuable financial ratios. In microcosmic analysis method, depend on analyzing these financial ratios to understand David Jones Ltd. financial conditions such as activity ability, liquidity ability, solvency ability and growth ability. Meanwhile in this report, David Jones Ltd is compared with a competitor which is Myer that using common size statement in order to analyze it macroscopically.

Accordingly, this financial analysis report presents David Jones Ltd. actual financial conditions and abilities and indicates future development in David Jones Ltd.

The Table of Contents

1. Letter of Transmittal
2. Executive Summary
3. Introduction
3.1 Economy and Industry
3.2 Company Overview
3.3 Purpose
3.4 Methodology
3.5 Limitation
4. Financial Analysis
4.1 Financial Statements Analysis
4.2 Common Size Statements
4.3 Ratio Analysis
4.3.1 Activity Analysis
4.3.2 Liquidity Analysis
4.3.3 Solvency Analysis
4.3.4 Valuation Ratios Analysis
4.3.5 Profitability Ratios Analysis
4.3.6 Growth Rates Analysis
5. Prospective Analysis
6. Conclusion
7. References
8. Appendixes

This financial analysis report aims at the FY04-FY08 for David Jones Ltd. during this time period, there is a serious global financial crisis and global economy declines at that time. Daivd Jones Ltd. as a retail industry, some products will stock such as luxury goods meanwhile David Jones Ltd import products from overseas and with exchange rate, transport fee go up and cost of good sold will increase. The whole economy environment alteration leads to form an execrable condition to Daivd Jones Ltd.

For the Australian retail industry, the sales fell by 0.1% in the 3rd of 2008 (Retail Times, 2008) thus industry become more competitive during that time. Many companies reduce the staff trimmer, cancel the special, refuse plastic bag and so on in order to reduce the expenses and gain profit. Daivd Jones reduces 150 officers and administrative jobs and adjust the product types thereby try to reduce the cost.

David Jones Limited as the leader of the retail industry in Australia, it is the oldest public department store which was founded by David Jones in 1833. Until 2008, David Jones Ltd. has 37 stores that almost located in Australian. With the rapid development of the global economy and people’s living standard is improved and consumers’ requirement become diversification. Thus, David Jones Ltd. extended its business to many areas such as fashion, cosmetics,...
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