GWA Report
GWA GROUP
Accounting Concept & Practices
Group Assignment
Student ID: 30121348 (Harbir Singh) , 30121761 (Aditi Bholla) , 30080954 (Tushar Rana)
2/3/2014
Abstract
The report describes the financial situation of GWA group over period of 2011-2912. In the underwritten report, various sections and aspects have been covered to bring a comprehensive meaning. The entire report includes sections of introduction, director`s report, calculation of financial ratios, assessment, recommendations and appendices. Introduction covers an overview about the company and director`s report covers certain facts and figures about the company whereas financial ratios have been calculated to ascertain the financial position and performance of the company in the years 2011 and 2012 and comparison has been made between those two years` figures as a part of assessment. At the end, recommendations have been given for the clients for taking investment decision about investing in GWA group limited. Therefore the whole report has been prepared to assist clients.
TABLE OF CONTENT
1.0 INTRODUCTION 3
2.0 DIRECTOR’S REPORT 4
3.0 RATIO ANALYSIS 5
4.0 ASSESSMENT OF THE COMPANY 7
5.0 RECOMMENDATION 8
6.0 REFERENCE LIST 10
7.0 Appendice 11
1.0 Introduction
GWA Group Limited is Australia’s leading supplier of building fixtures and fitting to households and commercial premises. The company presents different brands such as Caroma, Dorf, Fowler, Stylus, Radiant, Irwell, Dux, Brivis, and Australian lock, Gainsborough, Gliderol and API Locksmiths. They are also known as an exclusive Australian distributor of other brands including Hansa and KWC. (GWA Group Limited,2014)
GWA Group Limited was listed on the Australian stock exchange on 20th May 1993, and comprised the business division of Caroma, sebel,
Accounting Concept & Practices
Group Assignment
Student ID: 30121348 (Harbir Singh) , 30121761 (Aditi Bholla) , 30080954 (Tushar Rana)
2/3/2014
Abstract
The report describes the financial situation of GWA group over period of 2011-2912. In the underwritten report, various sections and aspects have been covered to bring a comprehensive meaning. The entire report includes sections of introduction, director`s report, calculation of financial ratios, assessment, recommendations and appendices. Introduction covers an overview about the company and director`s report covers certain facts and figures about the company whereas financial ratios have been calculated to ascertain the financial position and performance of the company in the years 2011 and 2012 and comparison has been made between those two years` figures as a part of assessment. At the end, recommendations have been given for the clients for taking investment decision about investing in GWA group limited. Therefore the whole report has been prepared to assist clients.
TABLE OF CONTENT
1.0 INTRODUCTION 3
2.0 DIRECTOR’S REPORT 4
3.0 RATIO ANALYSIS 5
4.0 ASSESSMENT OF THE COMPANY 7
5.0 RECOMMENDATION 8
6.0 REFERENCE LIST 10
7.0 Appendice 11
1.0 Introduction
GWA Group Limited is Australia’s leading supplier of building fixtures and fitting to households and commercial premises. The company presents different brands such as Caroma, Dorf, Fowler, Stylus, Radiant, Irwell, Dux, Brivis, and Australian lock, Gainsborough, Gliderol and API Locksmiths. They are also known as an exclusive Australian distributor of other brands including Hansa and KWC. (GWA Group Limited,2014)
GWA Group Limited was listed on the Australian stock exchange on 20th May 1993, and comprised the business division of Caroma, sebel,
References: Company history (2014) retrieved from http://www.gwagroup.com.au/who-we-are/company-history/ on 1st of febuary 2014. Company profile (2014) retrieved from http://www.gwagroup.com.au/who-we-are/company-profile/ On 2nd Febuary 2014 GWA Group Limited (2014) retrieved from http://www.gwagroup.com.au/ on 1st of febuary 2014 GWA Annual report (2014) retrieved from http://www.gwagroup.com.au/investor-relations/annual-reports/ on 2nd febuary 2014 Houston J. Brigham E. (2011), ``Fundamentals of Financial Management``. Book. Penman S. Nissim D. (2001) ``Ratio Analysis and Equity Valuation- from research to practice`.` 7.0 Calculation of Ratios of GWA limited – ( Appendice 1) 1. Current ratio = Current Assets/ Current liabilities = 225736 / 95661 = 2.35 (2012) = 270910 / 116747 = 2.32 (2011) 2 = 225736 - 91766 / 95661 = 1.40 (2012) = 270910 – 104160 / 116747 = 1.42 (2011) 3. Inventory Turnover = Cost of Sales / Average inventory = 384978 / 97963 = 3.92 (2012) = 405344 / 104297.5 = 3.89 (2011) [ Average inventory= 91766+104160 / 2 = 97963 (2012) Average inventory= 104160+104435 / 2 = 104297.5 (2011) ] = 39655 / 602128 = 6.58 % (2012) , = 63359 / 641574 = 9.88 % (2011) 5. Cash return on Sale = Net cash used by from operating activities / Net Sale = 60499 / 602128 = 10.04% (2012) = 88558 / 641574 = 13.80 % (2011) 6 = 217150 / 602128 = 36.06% (2012) = 236230 / 641574 = 36.82% (2011) Expenses = 93788+50719+13452+16226 = 174185 (2012) Expenses = 85470+48718+2605+17418 = 154211 (2011) = 174185 / 602128 = 28.92% (2012) = 154211 / 641574 = 24.03 % (2011) 8. Asset turnover = Net Sale / Average asset = 602128 / 781042 = 0.77 times (2012) = 641574 / 813596.5 = 0.78 times (2011) Average asset = 748321+813763/2 = 781042 (2012) Average asset = 813763+ 813430./2 = 813596.5 (2011) 9 10. Return on Equity = Profit / average equity = 39655 / 433489.5 = 9.15% (2012) =63359 / 435542 = 14.54% (2011) Average equity = 426984+439995 / 2 = 433489.5 (2012) Average equity = 439995+ 431089 /2 = 435542 (2011) 11 = 39655 / 301662 = 13.15 (2012) = 63359 / 301221 = 21.03 (2011) 12. Price earning Ratio = Market price per share / Earning per share = 17.24 (2011) = 21.10 (2012) 13 = 18 / 39655 = .045 % (2012) = 18 / 63359 = .028 %(2011) 14. Debt to total asset ratio = Total Debt / Total assets = 321337 / 748321 = 42.94% (2012) = 373768 / 813763 = 45.93%(2011) 15 = 60499 / 347552.5 = 17.40% (2012) = 88558 / 378054.5 = 23.42 % (2011) Average total liabilities = 321337+373768 /2 = 347552.5 (2012)