Critical Assessment of Jjb Sports Plc Annual Reports and Accounts

The current ratios within the years 2013-2014 have improved for JB Hi Fi in 2013 as it stood at 1.27:1 whereas in 2014 it had increased it’s performance to 1.64:1. This has improved due to the current liabilities being reduced in 2014, which lead to the improvement of the total current assets. This ratio is mainly used to give an idea of the company’s ability to pay back its liabilities within its assets, which includes cash, inventory and receivables. In 2014 it showed a higher current ratio, which demonstrates that the company is more than capable in paying its debts. This gives a sense of efficiency of a company’s operating cycle to turn its product into cash. In the financial report the shareholders use this ratio in determining whether

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

Various parties, including external users such as creditors, shareholders, the government, lenders and potential investors, use the annual report for JB HI FI LTD. Each user has a different purpose for viewing the report from JB HI FI; Creditors use the report to look at a company’s financial wellbeing. The creditors look at the income, expenses, profits/loss, debt and receivables also its cash flow. Creditors use annual reports to measure risk and the business’ ability to pay them back. Shareholders when using annual reports look to view whether their investment is worthwhile; shareholders can calculate the

As the member of World Wealth Management our group has analysed and evaluated the published financial statement of Sports Direct and JD Sports Fashion.plc from year 2010 to 2012 for providing and investment guideline to Mr. Dave Jones. In our analysis we have utilized various types

This report is provided for the purpose of evaluating the accounts of Sky PLC. The report shall feature calculations of ratios based on factual figures and provide a discussion as to the possible underlying causes of such changes. Sky PLC’s annual accounts have been used to gain the facts and figures and Sky PLC website has been used to gain company information. This report is limited to the information provided by Sky PLC and no other facts, figures or sources have been consulted.

The report provides an analysis of profitability, assets utilization & liquidity and financial stability methods of ABC Sports Ltd. The method of analysis used ratio analysis, which including Return on Assets (ROA), Inventory turnover and Current Ratios. All calculations can be found in above diagram.

Aurora’s financial performance from 1999 to 2002 was barren and discouraging. The financial ratios in the table above show a clear image of Aurora’s financial situation. It is obvious that Aurora has been facing economic pressures because of the business risks that arose from the intensive competition in the textile industry, which led to the decline in sale margins. Sales after 1999 quickly fell below standards, additionally, sales growth steadily declined at an average of 15.3% (-40% between 1999 and 2002). The company has failed to turn a profit for the past four years, although in 2002 Aurora showed a positive operating profit (See the table above). In order to conserve cash, Aurora was forced to closed several manufacturing operations. Profit margins, ROA, and ROE (which were always negative), and the asset turnover declined, indicating that Aurora has not contracted with assets as fast as the decline in sales. Furthermore, a snap shot into their inventory and accounts receivable indicate major signs of poor management as sales (outstanding) and days inventory have both significantly increased since 1999 (most of the firm’s current assets are account receivables and inventories). Raw material cost also reflect potential management issues, the net sales (as percentage) declined from 54.01% to 44.05%. Aurora needs to manage its expenses to generate profits overall.

In this paper I will use the income statement and balance sheet to evaluate the financial performance of Lamar Swimwear, and the company’s worthiness as an investment. While just looking at a company’s financial report one is unable to see all of the details necessary to make a clear decision. Anything can look good on paper but if you scrutinize and analyze that paper you may be surprised at to what you may discover. Lamar Swimwear is one of those companies that looks like it may be flourishing within its industry until numbers are calculated. With the ratios that I will give within and throughout this paper it will allow you to see why Lamar Swimwear is not a good investment for a new partner to

The business had focused on revenue (up to 17 per cent) rather than GPM by lowering prices; this had been accompanied by 30 per cent increased in overhead expenses. It also accounted for the weak performance compared with 2012 (the decrease between 0.4 per cent to -0.3 per cent).In 2013 for every £1.0 of sales revenue, an average of -0.3p was left to cover operating profit after paying for the cost of the groceries sold. Taxation increased the PostTPM from -3.5 per cent to -1.6 per cent during the 2013 financial period, meaning that the profit after tax on a £100 piece of product was £-1.6.The PreTPM and the PostTPM were very unhealthy providing for a loss over the two years; however, it had made a significant progress of 1.9 per cent during 2013 financial period. Along with the huge decreasing of the ROCE in the figures, it was mainly due to reduced operating profit and descending equity (that was, 1.5 per cent to -1.4 per cent). The ROCE indicated that the performance of Ocado was reduced, as a return on the assets was less than the fund expense rate that the business had to pay. The reduction in the ROCE was 2.9 per cent, which meant an operating profit of -1.4p generated from each £1 of long-term permanent finance in 2013. Thus, the shareholders might see a warning to value

Especially because the environment is changing more rapidly compared to some years ago. This leads to greater uncertainty, and because of that efficient risk management is needed. Risk management includes identifying, analyzing, accepting, or mitigating all the possible risks related to the action . Carrying out this process will help the decision makers to get a more accurate overview of the potential losses that could result from this investment/strategy and so have a result, which can then be compared to projected benefits. These results will help the responsible person to make a final decision then. This chapter discusses, with help of the “Risk Management framework” by Andy Osborne, the risks, which the company is facing by carrying out this strategy, the impact and likelihood of the risk, as well as different approaches how to minimize, shift, or avoid those

Adidas is the leader of sporting footwear in Europe. On the global front, it ranks second, being that their products have markets in at least 200 countries around the world. Apart from footwear, today Adidas designs, manufactures and markets accessories and clothing related to various sporting activities. The parameters that are used in the analysis are namely; executive summary, short-term financial plans, existing capital expenditure, dividend policies, and recommendations.

Generally speaking, Hampton lists three components of Enterprise Risk: Business Risk, Financial Risk, and Hazard Risk. Business Risks are those that could prevent an organization from establishing and maintaining a sustained competitive advantage. Failure to update products or services, obsolescence cause by progression of technology, a change in consumer preferences, and weakening of the market for a product or service all fall under Business Risk (Hampton, 2009, p. 5). Financial Risk is the possibility funds will be inadequate for continued operations. Inadequate initial capitalization, changes in A/R or A/P, excessive debt relative to assets, high interest rates, and liquidity issues caused by financial structure are all facets of Financial Risk (Hampton, 2009, p. 6). Hazard Risk is the least predictable and the most sever; by definition it produces loss without the possibility of gain. Hazards may include such things as fire damage to facilities, physical injury to employees or customers, or frivolous lawsuits. While most businesses insure for the physical damage, there is no way to recoupe the time lost while production is at a standstill (Hampton, 2009, p. 7).

The aim of this report is to undertake a strategic analysis of Adidas.The Adidas strives to be the global leader in the sports goods industry with brands build on a passion for sports and sporting lifestyle, it sells products in virtually every country around the world.

In recent years, many of the studies of impression management are linked to accounting narratives. Dhanani and Connolly (2012) （r32）stated that the disclosure of the annual report could be seen as "the wrong organizational reality”. Thus, the quality of financial reporting becomes a growing concern because of the damage caused by impression management (Clarke and Dean, 2007). The chairman's report, which is considered to be widely read in these narratives (r26; Courtis 2004), may be used by managers to produce the desired impression on an unaudited basis, so the letter from the chairman is the focus of this article.