Accounting Analysis Report - Domino's Pizza
Added on 2020-07-23
6 Pages1026 Words124 Views
Finance
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Accounting
TABLE OF CONTENTSSUMMARY (PART A)...................................................................................................................1ACCOUNTING THEORY (PART B)............................................................................................1ANALYSIS (PART C)....................................................................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
SUMMARY (PART A)In the present context, balance sheet of Domino's Pizza enterprise is showing good resultsbut shares of enterprise are constantly diminishing in Australian Securities Exchange (ASX). Asenterprise, is able to increase its net profit to 31% but unable to control the decline in its stockprices. Enterprise is unable to meet the market expectations as certain signs of unethicalbehaviour have been identified in the organisation. The issue of wage fraud has been identifiedand company begin reducing its franchisees. Managing director and CEO have removed fourfranchisees and recovered $4.5 million from unpaid superannuation and wages which is 0.8% oflabour costs. Fewer franchises will own and operate more stores which assist in the increment ofshare price of company.ACCOUNTING THEORY (PART B)According to Rossi (2015) Efficient Market Hypothesis is an idea which says that it isimpossible to beat the market. Stock market efficiency which is already incorporate and showsclosely connected information which makes impossible to beat the market. Efficient markethypothesis suggest that stock market always deal on their fair value on securities exchanges,making unbearable for people who want to invest in stock markets As per Suliman (2017), thetheory has faced lots of hostility, especially from technical analyst. The theory expands andlimits the instinct in field of finance simultaneously. Every time company issues its shares inpublic, it becomes a game of chance, if they buy or sell the share of company and not a skill.The diverse form of theory assumes that present share totally shows all public and privateinformation (Lee, Tsong and Lee, 2014). No one is allowed monopolistic access to closelyrelated information which contains vital data, market and non-market which is implied in stockprices.ANALYSIS (PART C)As per the article, Domino’s Pizza, is unable to perform efficiently on AustralianSecurities Exchange, as the company’s share volume has been dropped to 14.36% which was 12month lowest and share per price dropped to $53.56. As the enterprise, able to soar profit of$59.7 million in its hotspot area, but unable to meet the market expectations. The earnings beforeinterest, taxes, depreciation and amortisation (EBITDA) has raised to 99.7% in European1
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