Financial Analysis of Billabong Limited

Running head: FINANCIAL ANALYSIS OF BILLABONG LIMITED
FINANCIAL ANALYSIS OF BILLABONG LIMITED
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FINANCIAL ANALYSIS OF BILLABONG LIMITED1
Executive Summery
This report is prepared to perform the financial analysis of the Billabong Ltd. For this, report
calculates the various financial ratio of the firm for the last three year mainly the profitability,
liquidity, leverage, efficiency and the investment.
This report calculates the ratio in the basis of the data published by the company in the annual
report of 2016, 2017 and 2018 half yearly.
This report concludes that the company- suffered loss in the last three years, does not paid
any divided and has high leverage as well as low efficiency.
This paper recommends not to invest in Billabong Ltd in the current situation until and unless
company manages to overcome the current situation.

FINANCIAL ANALYSIS OF BILLABONG LIMITED2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Profitability................................................................................................................................4
Liquidity.....................................................................................................................................6
Efficiency...................................................................................................................................7
Conclusion..................................................................................................................................9
Recommendation........................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................12

FINANCIAL ANALYSIS OF BILLABONG LIMITED3
Introduction
The report titled “Financial Analysis Of Billabong Limited” is prepared to analyse the
financial performance of the Billabong Limited. This report takes into account the financial
performance of the in the year 2016, 2017 and the 2018 (Half yearly) that is for 31st
December 2018. The report analyse the financial performance of the company in terms of
Profitability, Liquidity, Efficiency, leverage and Investment. To performance the financial
analysis of firm, this report perform the various ratio analysis that includes Gross profit
margin, Net profit margin, Current ratio, Quick ratio, Total asset turnover, Inventory
turnover, Debt ratio, Equity ratio and the Earning per share. The Billabong Ltd is an
Australian based merchandise company, which was initially deals with clothing. Laterally,
the company expand its business and stated dealing with the other items like skate boat,
watches, snowboard and backpacks. Gordon and Rena Merchant founder the firm in the year
1973. Billabong Ltd. works in various countries under the different brand names. The
registered office of the firm is situated in Queensland, Australia. This report analysis the each
financial section of the Billabong Ltd to recommend the investors of the firm regarding their
investment decision. The all figure in this report is taken from the annual report of the
company for the 2016, 2017 and 2018 (Half yearly). While, all the figures are in Australian
dollars and thousands.
Discussion
The financial analysis is a tool to analyse the performance of the in terms of the
Profitability, Liquidity, Efficiency, leverage and Investment. This helps the management of
the firm to make the several business decision as per the performance of the firm. This also
helps the stakeholders of the company to make their investment related decision (Zainudin &
Hashim, 2016). To analyse the financial performance of the company, this company uses the