Three financial performance issues

Running head: FINANCIAL ANALYSIS REPORT
Financial Analysis report
Name of the student:
Name of the university:
Authors note:

FINANCIAL ANALYSIS REPORT
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Table of Contents
Introduction:...............................................................................................................................2
The Qualitative analysis:............................................................................................................2
Enumerate options:.....................................................................................................................4
Three financial performance issues:...........................................................................................6
Comparison with Harvey Norman:............................................................................................7
Most importance financial performances issue:.........................................................................8
Conclusion:................................................................................................................................8
References:.................................................................................................................................9

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Introduction:
Harvey Norman is the largest Australian based Company and it is a Multinational
drop shipping organization of bedding, communications, furniture, computers and electrical
consumer products. It operates as a franchise whereas JB-Hi-Fi is the ASX listed Company in
Australian retailer, and it sells a Specializes in consumer goods.
Analysis of Financial report is a systematic procedure of analyzing the financial
information in the financial statement and to understand and take economic decisions.
Financial statement analysis is the essential tools. This system is also used for analyzing the
solvency and liquidity ratio position of a company. So the financial report can also be a vital
tool to compare the solvency and liquidity position of the organization and concerning other
competitors of the industry. The financial report is a significant way of comparing and
analysing ratio of the Company as an efficient and effective comparison (Robinson, Henry,
Pirie, & Broihahn, 2015). Contrast can be critical due to many factors, such as revenue-
generating capacity and size of the organization. Ratio analysis can be used to minimize the
impact of these factors. The main purpose of this financial statement analysis is to understand
the liquidity and solvent position of Harvey Norman, which is an organization that operates
in the retail trade of Australia. This analysis will also be useful in comparing the companies
JB Hi-fi and Harvey Norman Ltd, both of which work in the retail sector in Australia.
Additionally, the analysis will also help in studying financial and non-financial factors for
better comparison between these organizations (Robinson et al., 2015)
The Qualitative analysis:
The ratios which have been calculated above is built according to the Harvey Norman
and JB-Hi-Fi annual report in the past three years, 2019, 2018 and 2017. The benchmark

FINANCIAL ANALYSIS REPORT
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ratios can be resulted from the retail trading owner institute in consumer category
discretionary and this ratio Altman Z score model is also used.
Ratios:
There are so many essential liquidity ratios which are discussed in the financial
statement analysis that can help to analyze the company liquidity position. Both of this ratio
have been calculated for the Harvey Norman, and JB- Hi-Fi limited to analyse the liquidity
position of the Company.