Case Study Report Introduction The result of this report supported with the quantitative analysis from the Billabong company annual report. To provide the best information to the current shareholder, this report supported with relationship between overall evaluations of the company. Unfortunately, to give the best result of whether the shareholder should continue invest the company, the shareholder should consider other types of performance measures. Body This part of the report will provide a brief evaluation of the profitablity, liquidity, asset efficiency and gearing of the company. The profitability ratios of the company used to assess a business's ability to generate earnings as ...view middle of the document...
Secondly, the company has unable to convert an asset to cash quickly, because the company cannot push their customer to pay earlier and delay the payment of suppliers. Therefore, they cannot pay their wages quickly. Thirdly, the company unable to manage their inventory, problem arises because from several factors such as amount of product stocked in the inventory. Lastly, the number of loan increased from several factors such as expansion and the liquidity of company. Recommendation From accountants point of view this company is not healthy therefore is not recommended to continue the investment. However, here is a limitation in this report, the shareholder require more information to make decision. The shareholder should know types of performance measures (Rey-‐Marston, M., & Neely, A., 2010). The cause of problem arises from internal and external environment factors (Wang, S., & Tang, Y, 2013).
References Rey-‐Marston, M., & Neely, A. (2010). Beyond words: testing alignment among inter-‐organizational performance measures. Measuring Business Excellence,
14(1). Wang, S., & Tang, Y. (2013). Pfizer's growth strategies under different internal and external environments. International Journal of Business and Social Science, 4(16)
Duncan, D. (1972). Characteristics of organizational environments and perceived environmental uncertainty. Investopedia (n.d.). Profitability Ratios Definition. Retrieved from http://www.investopedia.com/terms/p/profitabilityratios.asp
Profitability Ratios (Appendix 1.0) Profit Margin = Earnings before Interestand Tax EBITSales Revenue ×100 06/10 06/11 06/12 06/13 226/1492 x 100 =15,13% 163/1691 x 100 = 9,64 % 34/1471 x 100...