David Jones analysis
A RATIO ANALYSIS
COURSE CODE
LECTURER
STUDENT
EXECUTIVE SUMMARY
In this paper, we demonstrate the use of actual financial data for financial ratio analysis, namely: liquidity, profitability, assets, capital and market. We construct a financial and industry analysis for David Jones Limited in comparing the company’s behavior between 2011 and 2012. The objective is to show exactly how to compute ratios for an actual company. This paper also demonstrates the comparison of the financial ratios of David Jones Limited with main rival Myer Holdings.
TABLE OF CONTENTS
1. INTRODUCTION 4
2. BODY 5 2.1 Profitability Ratio 2.2 Asset Efficiency Ratio 2.3 Liquidity Ratio 2.4 Capital Ratio 2.5 Market Ratio
3. CONCLUSION 17
4. REFERENCES 18
5. APPENDIX 20
INTRODUCTION
David Jones Limited (DJS), trading as David Jones, is a leading up-market retailer Australian Department Store chain. The company is divided into two operating segments that publicly report financial results.
The Department Store segment operates 35 department stores and 2 warehouse outlets located across all states and territories in Australia except in Northern Territory and Tasmania. The company’s products include ladies fashion, menswear, shoes, accessories, cosmetics,
COURSE CODE
LECTURER
STUDENT
EXECUTIVE SUMMARY
In this paper, we demonstrate the use of actual financial data for financial ratio analysis, namely: liquidity, profitability, assets, capital and market. We construct a financial and industry analysis for David Jones Limited in comparing the company’s behavior between 2011 and 2012. The objective is to show exactly how to compute ratios for an actual company. This paper also demonstrates the comparison of the financial ratios of David Jones Limited with main rival Myer Holdings.
TABLE OF CONTENTS
1. INTRODUCTION 4
2. BODY 5 2.1 Profitability Ratio 2.2 Asset Efficiency Ratio 2.3 Liquidity Ratio 2.4 Capital Ratio 2.5 Market Ratio
3. CONCLUSION 17
4. REFERENCES 18
5. APPENDIX 20
INTRODUCTION
David Jones Limited (DJS), trading as David Jones, is a leading up-market retailer Australian Department Store chain. The company is divided into two operating segments that publicly report financial results.
The Department Store segment operates 35 department stores and 2 warehouse outlets located across all states and territories in Australia except in Northern Territory and Tasmania. The company’s products include ladies fashion, menswear, shoes, accessories, cosmetics,
References: Annual Report 2012, David Jones, http://www.davidjones.com.au/-/media/Files/Corporate/Presentations/2012/David%20Jones%202012%20Annual%20Report.ashx Annual Report, Myer Holdings Limited, http://www.afr.com/rw/Wires/Stories/2012-09-13/ASXAnnouncements/MYR_01332878.pdf Brigham, Eugene F. and Joel F. Houston. Fundamentals of Financial Management, Ninth Edition, Harcourt College Publishers, Fort Worth, 2001. Graham, John R. and Campbell R. Harvey. “The Theory and Practice of Corporate Finance: Evidence from the Field,” Journal of Financial Economics, 60, 2001, pp. 187-243. Yahoo.finance.com Yahoo.marketguide.com APPENDIX