Question: write recommention from conclusion given bilabong company write recommentaions from above conclusion on bilaong international company write recommendations 9:25 Files Cance Based on above analysis,
9:25 Files Cance Based on above analysis, it can be concluded that prodability of the Billabong martial Limited has worsee compare to financial year 2016:15. The need the company that company is generating 0.293. loss on its overall vestenent in the form of solat. Doctomerne the other expenses of the company in the year 2017, company's en los has increased from 2.286 sales 77%. Asserver ratio and investery satis biped in maring the efficiency of the company. The improvement in the set tumever to the company in 2017 is the result of decline in the intangible. The decline in total se han dedimino profitame whichautstumower ratio has increased in 2017/16. Compared to industry in International Limited has underperformed the industry. Additional to this company failed to managementary tumover ratio. As a rent, inventory of the company ha dedined from 1956 1x in 2017/18. There he gap between performance of the company and industry image The underperformance of the company in terms of efficiency indicates requirement of immediate action by laborational med Company has improved a liquidity through singine inand quick to the year 2017. This improvement is the indications of decline in the ridefinisher duration However, more contribution of outsolable in the improvement of liquidity of the company increases the risk of bad deer. The leverage of the company makes it highly motor Investors to choose this as an investment option to otting low return highest Thus makes itable for the essere to choose Billabong national Land share for Investment. Due low operating it and high dhe financing company interesa Tatie Eindings The key findings indicates that are perfomance of Billabong Internal Limited declined from 2015 to 74 in 2017/16 was found from pom primante company has higheik of being evertaken by other form. The findings from the decline inics Coverage and debt coverage rates that if the site become uncle in future the company will fail to pack neco Promy, Sundful, Billabong International Limited has poestrategy to manage at dette Ascocence of which became rates and quick ratio of the company has increased in 201716. This increme in camera is the indicatie of necessary blockage of fun mung debton. The findings from the analyse suggests that company requires to focus more on equity financing her than det fungeres From the efficacy of the company was found that stumeeratase the company has improved from 0.94 in 201015601-03 2017/16. But this improvement has no impact on company's overall reputation.com's et profit marginha delined from 2. 20161510-7.1.2016 Write recommendation should be directed towards both the internal management director of the company adal existing and potential telequity imesta 10:56 Done ACC1508 group project assignmen... ANALYSIS Profitability In presenting 2017/16 profitability, asset efficiency, liquidity, capital structure and market performance ratios for Billabong International Limited or The Company, it was found Return on Equity (ROE), measures the firm's annual return in cents that is being generated for owners for each dollar of owners funds invested in the Company it was found from 2016/15 report ROE was -0.06% this inability to generate an adequate retum will restrict the Company's capacity to attract new capital investment and adversely affect its sustainability in the long term, increasingly yet, it was found in the 2017/16 report figures a further plunge of -0.25% ROE, we see this a disincentive for companies to try entering into the sports and fashion wear market, with this in mind we believe the company will remain as one of the big contenders in the market for sporting wear. We will now consider the ratios that have an impact on the Company's ROE Return on Assets (ROA) compares the companies profits to the assets available to generate the profits. The ratio reflects the results of the entity's ability to convert sales revenue into profit and its ability to generate income from its investments, For 2016/15 the companies ROA was -0.02% meaning for every dollar the companies convert into profits it is making a loss of 2 cents for every dollar generated from its investments, it was found in 2017/16 reports, the ROA had increased its percentage down further to -0.25% meaning for 2017/16 the company had been making a 25-cent loss for every dollar generated from its investments. This rather significant change in ROA can be attributed to an increase of impairment cost in other expenses from new valuation of intangible assets which effectively decreases net profit and lowers total assets. as you'll see in the expense ratios below profit margin. The Gross Profit Margin Ratio (GPMR) was found in 2016/15 to be 50.36%, meaning the gross profit generates for each dollar to sales revenue 50 cents. When compared to the industry average 56.24% of 2016/15, the company is still within the range of efficient use of raw materials and labour. 2017/16 showed little change up to 51.06%, an increase of I cent, from 50 cents, was generated to sales revenue. "resource utilised Retail Apparel Industry Profitability by quarter. Gross, Operatine and Net Mer from Misimuarket.com 10:04 1 . PROJECT DOCX-21 KB Market performance 5.1 Profitability Ratio Profitability Ratios indicates the Company's ability to generate profits over its investment capacity. It is a major indicator which shows the financial health of the organization. There are four types of Ratios to indicate the profitability. Return on Equity (ROE) which measures the returns (Profit Loss) on the shareholders investment in the Company, Another Profitability Ratios is Return on Assets (ROA) which compares the profit Loss which generated during the year with the value of the Assets they utilized to create this profit loss. Then other Ratio is Profit margin Ratio which compares the gross or net profit over the sales revenue. We can use this ratio to interpret expenses over the sales revenue during the year. The last Ratio is Cash flow to sales Ratio. It measures the cash flow created from its operating activities over the sales revenue. These ratios calculate as percentage. For the Billabong International Limited, ROE has further decreased by 18% and its Loss has increased than the previous year. ROA also shows the negative figure and it decreased by (2.97%). Profit Margin Ratio has increased by 0.71% with compared to the 2016. Further profit Margin has plunged by 5.67% to the -8%. It was -2.20% in 2016. Cash Flow Margin has increased by 3.04% than the previous year. When consider the Expense Ratios Selling. General & Administration expenses has decreased by 0.96% than the 2016. While the Other expenses has increased by 11.52% and Finance expenses has fallen to 3.88%. Which was 3.94% las year. Although some expenses ratios have fallen, the total expenses ratio is increased to 63.76% that is 10.49 than the year 2016. 5.2 Efficiency Ratio Efficiency Ratio indicates the Entity's ability to manage its assets (Inventory, Debtors etc.) in efficiently and effectively over the sales revenue. There are five ratios which measures the efficiency of the assets in the company. Assets turnover ratio which measures dollar value of the sales generated over the dollar value of the invested assets. And then Day's inventory Ratio measures the average period that it takes to sell the inventory Days Debtors indicates the average period that it takes to collect money from outstanding debtors. Times th Open Office Assets Turnover Ratio is 1.48 times in 2017 and it was 1.39 times creased by 0.09 9:25 Files Cance Based on above analysis, it can be concluded that prodability of the Billabong martial Limited has worsee compare to financial year 2016:15. The need the company that company is generating 0.293. loss on its overall vestenent in the form of solat. Doctomerne the other expenses of the company in the year 2017, company's en los has increased from 2.286 sales 77%. Asserver ratio and investery satis biped in maring the efficiency of the company. The improvement in the set tumever to the company in 2017 is the result of decline in the intangible. The decline in total se han dedimino profitame whichautstumower ratio has increased in 2017/16. Compared to industry in International Limited has underperformed the industry. Additional to this company failed to managementary tumover ratio. As a rent, inventory of the company ha dedined from 1956 1x in 2017/18. There he gap between performance of the company and industry image The underperformance of the company in terms of efficiency indicates requirement of immediate action by laborational med Company has improved a liquidity through singine inand quick to the year 2017. This improvement is the indications of decline in the ridefinisher duration However, more contribution of outsolable in the improvement of liquidity of the company increases the risk of bad deer. The leverage of the company makes it highly motor Investors to choose this as an investment option to otting low return highest Thus makes itable for the essere to choose Billabong national Land share for Investment. Due low operating it and high dhe financing company interesa Tatie Eindings The key findings indicates that are perfomance of Billabong Internal Limited declined from 2015 to 74 in 2017/16 was found from pom primante company has higheik of being evertaken by other form. The findings from the decline inics Coverage and debt coverage rates that if the site become uncle in future the company will fail to pack neco Promy, Sundful, Billabong International Limited has poestrategy to manage at dette Ascocence of which became rates and quick ratio of the company has increased in 201716. This increme in camera is the indicatie of necessary blockage of fun mung debton. The findings from the analyse suggests that company requires to focus more on equity financing her than det fungeres From the efficacy of the company was found that stumeeratase the company has improved from 0.94 in 201015601-03 2017/16. But this improvement has no impact on company's overall reputation.com's et profit marginha delined from 2. 20161510-7.1.2016 Write recommendation should be directed towards both the internal management director of the company adal existing and potential telequity imesta 10:56 Done ACC1508 group project assignmen... ANALYSIS Profitability In presenting 2017/16 profitability, asset efficiency, liquidity, capital structure and market performance ratios for Billabong International Limited or The Company, it was found Return on Equity (ROE), measures the firm's annual return in cents that is being generated for owners for each dollar of owners funds invested in the Company it was found from 2016/15 report ROE was -0.06% this inability to generate an adequate retum will restrict the Company's capacity to attract new capital investment and adversely affect its sustainability in the long term, increasingly yet, it was found in the 2017/16 report figures a further plunge of -0.25% ROE, we see this a disincentive for companies to try entering into the sports and fashion wear market, with this in mind we believe the company will remain as one of the big contenders in the market for sporting wear. We will now consider the ratios that have an impact on the Company's ROE Return on Assets (ROA) compares the companies profits to the assets available to generate the profits. The ratio reflects the results of the entity's ability to convert sales revenue into profit and its ability to generate income from its investments, For 2016/15 the companies ROA was -0.02% meaning for every dollar the companies convert into profits it is making a loss of 2 cents for every dollar generated from its investments, it was found in 2017/16 reports, the ROA had increased its percentage down further to -0.25% meaning for 2017/16 the company had been making a 25-cent loss for every dollar generated from its investments. This rather significant change in ROA can be attributed to an increase of impairment cost in other expenses from new valuation of intangible assets which effectively decreases net profit and lowers total assets. as you'll see in the expense ratios below profit margin. The Gross Profit Margin Ratio (GPMR) was found in 2016/15 to be 50.36%, meaning the gross profit generates for each dollar to sales revenue 50 cents. When compared to the industry average 56.24% of 2016/15, the company is still within the range of efficient use of raw materials and labour. 2017/16 showed little change up to 51.06%, an increase of I cent, from 50 cents, was generated to sales revenue. "resource utilised Retail Apparel Industry Profitability by quarter. Gross, Operatine and Net Mer from Misimuarket.com 10:04 1 . PROJECT DOCX-21 KB Market performance 5.1 Profitability Ratio Profitability Ratios indicates the Company's ability to generate profits over its investment capacity. It is a major indicator which shows the financial health of the organization. There are four types of Ratios to indicate the profitability. Return on Equity (ROE) which measures the returns (Profit Loss) on the shareholders investment in the Company, Another Profitability Ratios is Return on Assets (ROA) which compares the profit Loss which generated during the year with the value of the Assets they utilized to create this profit loss. Then other Ratio is Profit margin Ratio which compares the gross or net profit over the sales revenue. We can use this ratio to interpret expenses over the sales revenue during the year. The last Ratio is Cash flow to sales Ratio. It measures the cash flow created from its operating activities over the sales revenue. These ratios calculate as percentage. For the Billabong International Limited, ROE has further decreased by 18% and its Loss has increased than the previous year. ROA also shows the negative figure and it decreased by (2.97%). Profit Margin Ratio has increased by 0.71% with compared to the 2016. Further profit Margin has plunged by 5.67% to the -8%. It was -2.20% in 2016. Cash Flow Margin has increased by 3.04% than the previous year. When consider the Expense Ratios Selling. General & Administration expenses has decreased by 0.96% than the 2016. While the Other expenses has increased by 11.52% and Finance expenses has fallen to 3.88%. Which was 3.94% las year. Although some expenses ratios have fallen, the total expenses ratio is increased to 63.76% that is 10.49 than the year 2016. 5.2 Efficiency Ratio Efficiency Ratio indicates the Entity's ability to manage its assets (Inventory, Debtors etc.) in efficiently and effectively over the sales revenue. There are five ratios which measures the efficiency of the assets in the company. Assets turnover ratio which measures dollar value of the sales generated over the dollar value of the invested assets. And then Day's inventory Ratio measures the average period that it takes to sell the inventory Days Debtors indicates the average period that it takes to collect money from outstanding debtors. Times th Open Office Assets Turnover Ratio is 1.48 times in 2017 and it was 1.39 times creased by 0.09
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
