Financial report analysis Essay

1997 Words8 Pages
Introduction The following report is an analysis of the consolidated accounts for Hallenstein Glasson Holdings Ltd (HLG) based on the 2013 financial statements and the ratio analysis is based on the group account figures. The terms of this report is to firstly, determine the strengths, weaknesses and prospects of HLG and secondly, to determine if the shares are favourably priced? Business Summary Hallenstein Glasson Holdings Limited is a holding company. The Company, through its subsidiaries, is a retailer of men’s and women’s clothing in New Zealand and Australia. The Company’s segments include Hallenstein Bros Limited (New Zealand), Glassons Limited (New Zealand), Glassons Australia Limited (Australia), Storm (Retail 161 Limited)…show more content…
4 Tax Expense Tax Expense 8281 28% NIBT 29301 Efficiency Analysis 5. Age of Accounts Receivable turnover is the ratio of net credit sales to average accounts receivable. It is an activity or efficiency ratio and it measures average number of times a business collects its receivables during a period usually a year. Generally a high value of accounts receivable turnover is favorable and lower figure may indicate inefficiency in collecting outstanding sales. For HGH the camparison between 1/12 of sale and liste AR for the year is approx 0.5 which is very similar to previous year when adjusted for Christchuch Earthquake Receivables and higher than camparable company KTHDY at 0.12. 5 Age of Accounts Account Rec 864 0.05 Receivable 1/12 Credit sales 17965 6. Stock turn over ratio Inventory turnover ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. This ratio indicates whether investment in stock is within proper limit or not and for a fashion clothing company 5 times would be expected and is stable compared to the previous year. This compares favourably with Kathmandu which as a discounting chain is only turning over stock at 2 times a year. 6 Stock Turn Cost Sales 89193 5 Inventory 19514 7. Net Cash Flow comparison to net income after tax. By taking net income and making
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