Padini
Executive Summary
Our research on Padini Holdings Berhad reveals its overall position and history in the retail industry since 1971 as well as its vision and mission established to the accomplishment of their corporate goals. On top of that, the financial and strategic objectives set by the management to meet its goals are also outlined in the body of the report.
Through the analysis of the financial statements, the liquidity position of the group can be gauged by using a number of measures like the trade receivables and payables period, current and quick ratio, and also its working capital cycle. Collectively, these measures indicate that the group is relatively liquid in nature. Besides, an analysis of the capital structure of the group shows that there is a lack of equity funding as compared to debt funding in the past three years while the group moves to a more conservative approach in managing its debts. On the other hand, while its gearing ratio increases slightly as compared to the past year, it still meets the industry average ratio and hence poses no threat to the going concern of the group.
In terms of the share price, it is noted that there is a significant decrease in share price of the group in year 2011 due to a share split involving subdivision of its existing shares to enhance its share liquidity. However, due to the fact that its growth rate in dividend is increasing annually, its share price is expected to increase in future periods.
Introduction
Purpose of report This research is carried out to enable us have a better understanding on the financial statements and business direction of Padini Holdings Berhad.
Background of Padini Holdings Berhad
Padini Holdings Berhad is a Malaysia-based investment holding company that sells both mens ' and ladies’ shoes and accessories, garments, ancillary products, children’s garments, maternity wear and accessories where goods are exported mainly to Asian
Our research on Padini Holdings Berhad reveals its overall position and history in the retail industry since 1971 as well as its vision and mission established to the accomplishment of their corporate goals. On top of that, the financial and strategic objectives set by the management to meet its goals are also outlined in the body of the report.
Through the analysis of the financial statements, the liquidity position of the group can be gauged by using a number of measures like the trade receivables and payables period, current and quick ratio, and also its working capital cycle. Collectively, these measures indicate that the group is relatively liquid in nature. Besides, an analysis of the capital structure of the group shows that there is a lack of equity funding as compared to debt funding in the past three years while the group moves to a more conservative approach in managing its debts. On the other hand, while its gearing ratio increases slightly as compared to the past year, it still meets the industry average ratio and hence poses no threat to the going concern of the group.
In terms of the share price, it is noted that there is a significant decrease in share price of the group in year 2011 due to a share split involving subdivision of its existing shares to enhance its share liquidity. However, due to the fact that its growth rate in dividend is increasing annually, its share price is expected to increase in future periods.
Introduction
Purpose of report This research is carried out to enable us have a better understanding on the financial statements and business direction of Padini Holdings Berhad.
Background of Padini Holdings Berhad
Padini Holdings Berhad is a Malaysia-based investment holding company that sells both mens ' and ladies’ shoes and accessories, garments, ancillary products, children’s garments, maternity wear and accessories where goods are exported mainly to Asian