Accounting

Accounting for decision Making Assignment Trimester 3 2010

Contents –

Section A

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Section B

Introduction -

Body -

Profitability

- Net profit/gross profit – Page 1

- Return on equity/ asset turnover Page 2

-

Efficiency

-Inventory turnover / debtor/ credit turnover – Page 3

Financial stability

- Short term current ratio - Page 3

- short term – quick ratio – Page 4

- long term – debt asset ratio/ debt equity ratio/ times interest earned – Page 4

Section C -

-limitations – Page 4

Section D –

- Recommendation –Page 5

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Section B) - A

Introduction:

Noni B ltd and Specialty fashion Group Ltd are both fashion retailers around Australia. Noni B has few hundreds of store located around all over Australia where there organisation first began in 1977 whereas Specialty fashion Group has over 800 stores and expanding to New Zealand today. These leading fashion retailers both own various designer brands to provide quality fashion and service to females of all ages and sizes at competitive prices. Specialty Fashion Group (Millers, Katies, Crossroads, Autograph, City Chic, Queens park) is a larger organisation than Noni B ( Noni B, Liz Jordan) as it has greater number of designer brands and stores. They also now cater for customers online locally and internationally. They are expanding their organisation’s area by buying, planning, designing and production. As these organisations are leading fashion retailed these organisations have been listed on the Australian stock Exchange. Noni B was first listed on the Australian stock Exchange in May 2000. The Aim of this financial analysis is to perform and interpret financial ratios over the 2 year period from 2009 – 2010 to give advice of investment opportunities to both companies.

B)

Profitability –

Gross profit margin –

From the gross profit margin we can see that Noni B was 57.48% which means...