Financial Analysis of Kathmandu Holdings Limited

Running Head: KATHMANDU HOLDINGS 0
Kathmandu Holdings

KATHMANDU HOLDINGS 1
Executive Summary
Kathmandu Holdings Limited is the Australian based company which is dealing in the travel
based equipment and the same are exported in the New Zealand. This report is basically made to
determine the financial analysis of the Kathmandu holdings on the basis of the ratio analysis the
share price movements and according to the dividend policy. The currents share price of the
company is compared with the previous years and the results state that the share trend lines of
the company are volatile, more volatile than the market returns. Also the recommendations are
provided to the company to rectify there mistakes and focus their attention on the sick areas of
the business operations.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Profitability Ratios...........................................................................................................................3
Liquidity.......................................................................................................................................6
Financial structure...........................................................................................................................7
Share Price Movement.....................................................................................................................8
Dividend Policy.............................................................................................................................10
Conclusion and Recommendations................................................................................................11
References......................................................................................................................................12

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Introduction
Kathmandu Holdings Limited is a transnational chain of retail stores and selling the
travel adventure and the outdoor apparels, and also the necessary equipment’s. The Kathmandu
holdings are a leading retailer for the equipment’s of the travel and the adventure. Presently the
stores are situated in 163 stores at the end of the July 2017. The chief executive officer of the
Kathmandu Holdings is Xavier Simonet yet it was founded by the JOHN Pawson and Jan
Cameron in 1987. The company first set up all of its first outlets in Australia and manufacturing
the maximum clothes in the New Zealand. Currently the income of the company is NZ$34
million against the revenue of NZ$445.35 million. The company has its headquarters at
Christchurch, New Zealand (Kathmandu Holdings, 2018).
In the year 2006, the company is fully acquired by Australian Private Equity for NZ$275
million. Further in the year 2018, the Kathmandu acquired Oboz Footwear in March 2018. Oboz
is a footwear brand based in the Montana USA.
Profitability Ratios
The profitability ratios of the company are calculated to analyze the final performance of
the company along with the earnings per share which are left for the investors and the
shareholders. The major ratios that form the part of the profitability ratios are the EBITDA, net
profit ratio, gross profit ratio and from the point of view of the brokers all these ratios are of
critical and core importance as the major earnings of the brokers are dependent on the
profitability ratios of the company.