5910 Assignment 2010
BILABONG Australia - financial statement analysis assignment
ACCT 5910-Business Analysis and Valuation
Contents
Executive summary……............................................................................................................3
Executive summary
The purpose of report is to provide a comprehensive analysis of Billabong International Limited. This report is primarily based on a trend analysis of Billabong’s financial performance ratios from 2009 to 2011, common size table of the balance sheet and income statement and analysis of Billabong’s cash flows. Expect to provide a basis understanding of the company’s recent situation and future valuation. The company we compared, as a part of the surfwear industry is Quiksilver.
Billabong is a multi-brand Australian company that was established by Gordon and Rena in 1973 in Gold Coast. After decades of expansion and restructuration of capitalization, Billabong’s shares have publicly listed on the ASX.
Using four-step to analysis Billabong which including business strategy analysis, accounting analysis, financial ratio analysis and prospective analysis that would help a great deal in valuation of Billabong based on its current market situation.
Business strategy includes continuous acquisitions and emerges like taking over strong brand and the products in the same sales area and expansion internationally by reaching more than 100 countries around the world. Billabong’s multicultural design of products featured new and fashion captures customer loyalty among targeted youth group.
In order to ensure the company’s accounting information reflects its business reality. Three steps of accounting adjustments are taken in preparation for financial analysis, forecasts and valuation. First is to recast financial statements. This contains re-classifying accounts and preparing standardized balance sheet and income statement, using
ACCT 5910-Business Analysis and Valuation
Contents
Executive summary……............................................................................................................3
Executive summary
The purpose of report is to provide a comprehensive analysis of Billabong International Limited. This report is primarily based on a trend analysis of Billabong’s financial performance ratios from 2009 to 2011, common size table of the balance sheet and income statement and analysis of Billabong’s cash flows. Expect to provide a basis understanding of the company’s recent situation and future valuation. The company we compared, as a part of the surfwear industry is Quiksilver.
Billabong is a multi-brand Australian company that was established by Gordon and Rena in 1973 in Gold Coast. After decades of expansion and restructuration of capitalization, Billabong’s shares have publicly listed on the ASX.
Using four-step to analysis Billabong which including business strategy analysis, accounting analysis, financial ratio analysis and prospective analysis that would help a great deal in valuation of Billabong based on its current market situation.
Business strategy includes continuous acquisitions and emerges like taking over strong brand and the products in the same sales area and expansion internationally by reaching more than 100 countries around the world. Billabong’s multicultural design of products featured new and fashion captures customer loyalty among targeted youth group.
In order to ensure the company’s accounting information reflects its business reality. Three steps of accounting adjustments are taken in preparation for financial analysis, forecasts and valuation. First is to recast financial statements. This contains re-classifying accounts and preparing standardized balance sheet and income statement, using