Myers: Financial Statement Analysis and Future Forecast

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FINANCIAL MANAGEMENT

Myers
Executive Summary
The performance of a business can be ascertained with the help of annual report. A balanced
view of the company can be done when the financial statements are analyzed. In this report,
the emphasis is provided on Myers that is a huge departmental store and located in Australia.
The report initiates with the introduction of the company followed by the highlight of the
financial statements together with the ratio analysis. Further, the future scenario of the
business is forecasted with the help of the prevailing situation. The ethical consideration, as
well as the external factors, are discussed together with a strong emphasis on merger and
acquisition.
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Myers
Contents
Introduction...........................................................................................................................................3
Financial statement highlight................................................................................................................3
Ratio analysis.........................................................................................................................................4
 Profitability ratios..........................................................................................................................4
 Liquidity ratios...............................................................................................................................4
 Solvency ratio................................................................................................................................5
Reasons why Myers will succeed in the future......................................................................................5
Political competitive environment - PESTEL analysis of Myer Ltd......................................................7
Concern for Ethical and sustainable issues............................................................................................9
Factors that impact acquisition and mergers......................................................................................10
Recommendation................................................................................................................................12
Conclusion...........................................................................................................................................13
References...........................................................................................................................................14
Appendix.............................................................................................................................................16
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Myers
Introduction
The departmental store groups of Myer are one of the largest departmental stores and also
have more than 60 stores in one of the best market locations in Australia. Also, the
departmental stores own one of the best women apparel suppliers of Australia like he David
Lawrence, Marcs, sass and bide. There are more than 130 million customers who visit their
departmental stores in a year, also the online business has improved with more than 70
million users visiting their site during FY2017. Myer has employed more than 11000
members of which about 6000 are having permanent status. The company also employs 3000
additional staffs during festive seasons. The main objective of the Myer groups is to grow and
integrate the operational strategies and also to maximize profit so as to make its investors
happy. It wants to inspire all its suppliers, customers and shareholders and thus improve their
sales of the main eleven product lines they sell. Myer was launched in September 2015 and
was having a capital investment of more $600 million for five years. They tried to use the
capital to make valuable customers and stakeholders and also to bring the love of shopping to
the customers.
Financial statement highlight
For the financial year 2018, the company Myer have decided to continue to make changes in
the consumer behavior and the environment of the firm. The firm also has prioritized the
propaganda relating to the investments and give greater productivity and efficiency across all
the assets. The company believes that the investments made will be the best for the
sustainable profit which will help the firm to improve its functioning. The last 12 months
resulted in the downfall of the sales by 1.4 percent. This may have been as a result of the
closure of the three stores and the space hand banks (Myers, 2017). This was also
accompanied by the great increase in the online business of the firm. The sales of the firm
were down by 1.5 percent and 0.2 percent in the fourth quarter on the basis of the comparable
stores. This period was also utilized by the firm to improve the efficiency and productivity of
the firm by the simplification of the working method of the office and the stores (Evans,
2018). Also, the CODB margin reduced to 31.85 percent.
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