Financial Analysis of Djs

David Jones limited                                                                                                                  

04/06/10

Executive summary

The trend of market share needs one to have the knowledge of financial analysis. This is an important tool as it provides with information regarding financial situation, the liquidity of the firm, the risks involved, and capital resources.

As an investor one should have the knowledge of supply chain management and credit appraisal.          David Jones is a retail company that was formed in 1838 at Sydney, Australia by David Jones. It deals with cosmetics, fashions, furniture, electrical s and food. By 2007 it had achieved revenue of Au$1.98million addition its total equity by 2009 was Au$687.7million.

Cash flow

               To get profits normally does not necessarily mean being liquid as a company can fail because of a inadequate cash, even while profitable. It also serves as another way of measuring business profits when it is known that accrual accounting concepts do not configure with economic realities.

David Jones cash flow statement provides information on the liquidity and the ability to change cash flows. As argued by Peter & Eddie (2000, p.78) cash flow statement gives extra information on evaluating assets, liabilities and equity. The embracing of cash         statement is basically because of the removal of allocations which can be gotten from various bookkeeping methods. The debt was paid down through a combination of cash flow provided by operating activities and investment maturities. The cash flows include operating flow, investment flow and financial ash flow.

             It has s clearly indicated that the assets, liabilities as well as the ownership equity are well stipulated and give the company a good position of performance. Increase in cash flow occurred due  to change in accounts receivable from the timing of sales and customer payments.Inventiry increased due to...