To evaluate the company financial statement

Running head: FINANCIAL ANALYSIS REPORT
Financial analysis report
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1FINANCIAL ANALYSIS REPORT
Executive summary
Many times the investors usually finds some relevant evidence or data about the company
where they want to invest. In that case financial statement analysis is an important port for
assessing a company. A well defined analysis can give better position to the investors. This paper
evaluates all the facts of the company named as Nick Scali Limited and Harvey Norman Limited,
and suggest which is the best option to invest. On the other part the company aslo responsible to
manage its operations keeps a viable financial position to make a growth. To evaluate the
company financial statement and performance of the concerned company, management will
analyse some key financial ratios like current ratio, ROA, ROE, Net Profit Margin etc. this
research paper describe how the company mange their operation financially and what is the key
factor which helps to maximize their profit even if they individually hold low ROA. This study
also frames a comparison of two companies by critically evaluates its financial statement.

2FINANCIAL ANALYSIS REPORT
Table of Contents
Introduction......................................................................................................................................3
Objectives and long-term plans.......................................................................................................4
Nick Scali Limited...........................................................................................................................4
Harvey Norman Holdings Limited..................................................................................................4
Financial ratios.................................................................................................................................4
Liquidity, capital structure and asset management efficiency.........................................................7
Capital structure...............................................................................................................................7
Asset management efficiency..........................................................................................................8
Operating profitability.....................................................................................................................8
Returns on shareholders’ investment...............................................................................................9
Capital expenditures......................................................................................................................10
Conclusion and recommendations.................................................................................................10
Reference.......................................................................................................................................11

3FINANCIAL ANALYSIS REPORT
Introduction
This report has analysed an internal evaluation on the basis of its financial statement and
report. This paper presents two companies like Nickscali limited and Harvey norman limited and
refer a comparison analysis. The user of this report may get help to understand the financial
position of both company and to catch the attention of the investors, concerning the return of
investment.
Objectives and long-term plans
Nick Scali Limited
The company has kept its objectives that commitment of delivering industry’s best
practice across all the busieness by recruiting and recollecting the well practice in the industry.
The group is keeping a policy of an equal opportunity and advocates the diversity in the
workplace. During the year the organization has opened six new furniture stores in the financial
year 2020 which aims to expand its retail market and maximization of profit (Mei et al 2015).
Harvey Norman Holdings Limited
The company is commited to the women’s sport its continuously provide some of the
marquee events. Over 35 years the company is not ony lived in that communities where it works
but also the has taken several active part to foster the communities. The company objective to
facilitate the female athletes in Australia. Harvey Norman is proud to be a key sponser of the
women’s state of origin.