The objective of this report is to analyse the current financial position of Super Retail Group (SUL) and to determine whether the company’s organization structure, equity and assets are efficiently managed. This report will introduced the current status of the company and will examined several analysis used to determine if the company would be a good financial investment and where the future of the company looks like. Finally, report will examine the recommendations suggested and will present a summary if the company is deemed as a good investment.
Company Identification
The company started in 1972 by Reg and Hazel Rowe as a retailer of auto parts, auto accessories, auto tools and equipment and began expanding their business internationally throughout Australasia. The company generates the majority of its income from the Motor Vehicle Services and Clothing retail industry. The company continue to lead the industry today as they have expended worldwide. SUL has grown to become one of Australasia’s leading specialty retailers with over 585 stores and annualised turnover in excess of $1,093,398,000 in 2011.
Business Summary
Super Retail Group Limited (SUL) divides its operations into the following divisions of Auto and Cycle Retailing, Leisure Retailing and Sporting Goods Retailing. According to figure 1, that clearing show the organisation structure and the three segment of the business.
ECONOMIC ENVIRONMENT
The ABS reported that inflation rate in Australia was recorded at 1.20 %in the second quarter of 2012. Historically, from 1973 until 2012, Australia Inflation Rate averaged 5.8 %reaching an all-time high of 17.6 %in March of 1975 and a record low of -0.3 % in September of 1997.
According to NBA Review, inflation is expected to pick up further as the lagged effect from the appreciation of the exchange rate continues to decline. This, together with the increase in prices from the introduction of the carbon price at the