Financial Statement Analysis for Myer

Financial statement
analysis for Myer

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Formulation of condensed financial statements......................................................................1
2. Critical evaluation of the financial performance of company.................................................4
3. Forecasts for the components of ROE to arrive at an estimation of ROE for 2020................5
4. What additional information would be interested in as an analyst in evaluating the
company’s performance for 2020................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Financial statements can be defined as the final accounts that are generated by
organisations so that they can analyse financial performance of business. With the help of it,
actual performance of entity could be determined (Myer, Thoroughgood, and Mohammed,
2016). Present report is based upon analysis of final accounts of Myer. This assignment covers
various topics such as formulation of condenses financial statements, critical evaluation of
performance of company, forecasts for the components of ROE. Apart from this, the additional
information which is required to perform the analysis is also covered in this report.
MAIN BODY
1. Formulation of condensed financial statements
Condensed financial statement for Myer are as follows which are generated with the help
of current final accounts and annual report of the enterprise:
Income statement:
CONDENSED INCOME STATEMENT 2019
Revenue 2345057
Net operating profit after tax 8,845.9
Profit or loss
- Investment profit after tax 389.2
+ Interest expense after tax 8,456.7
= Net operating profit after tax 8,845.9
+ Net investment profit after tax 389.2
= Investment and interest income 556.0
x (1 – Tax rate) 0.7
= Net investment profit after tax 389.2
1