The basic requirement is to undertake a general financial analysis comparing Myer Holdings Ltd (Myer) (ASX Code MYR) financial position and performance in the Financial Years 2013and 2012 compared to that of David Jones (ASX Code DJS) over the same period. The 2013 financial statements are required to be available on the internet within 2 months of financial year end.
The analysis should consider each of: profitability, asset efficiency, liquidity, capital structure, and market performance.
Note that for those 2012 ratios which involve Balance Sheet figures students will require the2012 annual statements (in addition to the 2013 report) to provide the 2012 beginning-of year balance sheet figures.The assignment will contain two main elements:
1. Schedule(s) of relevant ratios and other useful calculations
The detailed calculation of relevant ratios and other useful calculations should be included as one or more appendices prepared using Excel or a similar spread sheet. Students are advised to show the formulae used in determining particular ratios and other figures. Data items (for example 'Sales Revenue' or 'Total Assets') should be entered in a single cell in a specially designated 'data area' in the spread sheet, with any calculation referencing the relevant data cell.
2. Written report
The written report should:
2A. Explain briefly what is revealed by the ratios and other calculations in the context ofthe company's profitability, asset efficiency, liquidity, capital structure, and marketperformance. In particular, any important changes over the period 2012 to 2013 should be identified, discussed and, where possible, explained.
2B. Provide an overall assessment of whether the company's performance over the 2013 financial year have been better than 2012, and which company has improved itsperformance to a greater extent over this period. The judgement should be madefrom the perspective of existing equity investors (shareholders).