Accounting Financial Analysis

Running Head: ACCOUNTING FINANCIAL ANALYSIS 1
ACCOUNTING FINANCIAL ANALYSIS

ACCOUNTING FINANCIAL ANALYSIS 2
Table of Contents
Noni Limited Overview...............................................................................................................................3
Two Accounts Selection: Balance Sheet.....................................................................................................3
Two Accounts Selection: Income Statement...............................................................................................3
Analysis of Ratios.......................................................................................................................................4
Liquidity..................................................................................................................................................4
Profitability..............................................................................................................................................4
Solvency..................................................................................................................................................4
Market value ratios..................................................................................................................................5
References...................................................................................................................................................6

ACCOUNTING FINANCIAL ANALYSIS 3
Noni Limited Overview
NONI B Limited is an Australian based company which is best known for the women fashion
and apparels. The company sells its product by the way of the national boutique and stores under
the name Noni B limited. Currently the company has 213 stores and covers every state and
territory. It offers various types of dresses such as day dresses, evening dresses, maxi dresses,
prints dresses, outwear such as T-shirts, shirts, jackets, coats and shrugs. Currently the company
is operating at the revenue of $311 and $369. The net income on the other hand has been $34.25
for the current year 2018.
Two Accounts Selection: Balance Sheet
The two accounts that are of utmost importance in the balance sheet are the cash and the long
term liabilities. The entire position of the company is dependent on these two factors as the
liquidity position of the company can be determined easily. The cash of the Noni B Limited is
58.7 in the current year and in terms of the vertical analysis saw an increase by 25% over 16%
from the previous year1. The cash determines the entire position of how well the company will be
able to pay the liabilities. The second account is the long term liabilities that will govern whether
the company is in financial leverage or not. The long term liabilities of the company were 47.57
whereas in the current year the same is 43.55. Therefore these two accounts are the most
important account that is to be considered form the perspective of the balance sheet2.
Two Accounts Selection: Income Statement
The two items that are important in case of the income statement are the value of the sales and
the cost of the expenses. These two accounts are to be handled majorly because the sales volume
is the ultimate reason as the increase in volume will give the higher return to the organizations in
terms of the net profits3. The cost of expenses go parallel in case of the income statement as, cost
of expenses needs immediate review as it can affect the financial performance of the business4.
1 ("Balance Sheet For Noni B Ltd (N2N) From Morningstar.Com" 2019)
2 (“Staff, Motley” 2019)
3 ("2 Ways To Analyze An Income Statement" 2019)