David Jones Financial Ratios Analysis

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Executive summary This report is analysis financial performance according to financial ratios provided by tutors. There are there steps conducted by our group. Firstly, we divided works in three parts: introductions, body of report and conclusion and recommendations. Secondly, we got together do research from library and internet. Lastly, we finish each part individually and then check the work finally by others. About this report, introduction shows information of two companies, their history and their operations. And the aim of the report will be provided in the introduction why and what the report is going to provide. Body of report provides the ratios analysis, comparison of two years of each company and each company about which ratios…show more content…
Premier Investments Ltd is an Australian public company limited by shares. It is an investment company to maximize growth in capital returns to share holders through the acquisition of controlling or strategic shareholdings in Australian companies. For many years, it is successful in obtaining control of the Just group. Premier now owns the brands Just Jeans, Jay Jays, Portmans, Jacqui E, Peter Alexander, Dotti and Smiggle. Premier currently aspires to leverage its expertise and capital position to own and operate a selection of retail/wholesale businesses. David Jones founded in 1838, and it is an Australian ASX listed company as well. This is an Australian brands. You can buy everything in David Jones, like apparel, foot wear, home furnishings and food. It contains about 35 stores in…show more content…
Premier Investments Ltd dropped its current ratios sharply from 4.27 to 1.74. That indicates Premier Investments Ltd transferred its current assets to noncurrent assets or it got more current liabilities. However, it is still has less current liabilities covered it assets compared with David Jones Ltd. So David Jones Ltd needs to make a financial plan to meet the coming current liabilities, or they may get a financial crisis. Quick ratio Current ratio measures the current assets to be turned into cash to meet its debts in one year. Quick ratio is a more immediate measure of liquidity to obtain the cash. Again, Premier Investments Ltd dropped sharply on quick ratio from 3.48 to 1.40. However, David Jones Ltd only got 1.29and 1.18 for quick ratio. It is a bad signal for David Jones Ltd that is lower than 1. It does not got enough cash or near cash asset to meet its coming debts that David Jones Ltd needs to borrow from outside with a higher interest to settle the financial problem. 2.3.2 Long term

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