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Accounting Financial Ratio Essay

2891 words - 12 pages

TABLE OF CONTENTList of headingPage No.Overview of Just Group Limited2Overview of Housewares International Limited 4Ratio Analysis5Profitability Ratios 7Asset Efficiency Ratios9Liquidity Ratios 10Capital Structure Ratios11Market Performance Ratios13Conclusion15List of References16Just Group Limited (JG)Overview of JG limitedJust Group is dealing with retail apparel chains. Major brands of it include Just Jeans, JayJays, Dotti, Portmans, Jacqi-E and Peter Alexander (www.justgroups.com.au). These brand contributed sales of $698millions by the year 05-06. It has 775 stores across Australia and New Zealand as well as 5 stores in South Africa (www.writereports.com). Now a day this group has members of 500000 with it.Just Group Limited is an innovative market leader in the readymade garments. Listed on the Australian Stock Exchange.. Since its establishment, Just Group has maintained rapid growth proving it to be a dynamic and significant force in the Australia. It is such a company who has provided different garments to different people so that it can be able to fulfill needs of the market. it is also providing very good customer service by having members of 500000 in its group. With the help of this numbers it is able to become the leader of the market in not only Australia but also in New Zealand and South Africa. It has also introduced few new ranges of jeans in this year.Just Group is one of the most profitable readymade garments companies in Australia as well as one of the successful companies in market.The Just Group has undertaken significant expansion in recent times to achieve the goal of developing an infrastructure based full-service in the market. There are numerous entities which form part of the Group. The emphasis is on a range of brands that provide diversification through breadth of target demographic and sufficiently broad appeal to enable a national footprint. It sales about 90% of its products on its own name. It also spends lots on resource and development to target market and to also to maintain existing once. This investment includes national advertising campaigns and over five kilometers of store window displays, most of which are updated every two weeks.( www.justgroups.com). Net profit after income tax for the year ended 29 July 2006 was $57.2 million (2005: $45.9 million), which reflects a 24.6% increase compared to last year. In the 12 months to 29 July 2006 EBITA (earnings before interest, tax and amortization) increased by 21.2% to $88.3 million (2005: $72.9 million).The Group is highly cash generative, which allows the payment of strong dividends, continuous investment in the company and the ongoing repayment of debt. Total capital expenditure for the year was $25.4 million (2005: $19.6 million). The company has a sound capital structure. Net debt as at 29 July 2006is less than the company's EBITDA for the year ended 29 July 2006 and all debt covenants have been satisfied throughout the year. The Group has sufficient...

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