Accounting for Decision Making Report: Myer Company Financial Analysis

This report, titled 'Accounting for Decision Making,' presents a comprehensive financial analysis of Myer, a retail company. The report begins with company research, detailing Myer's products, CEO information, financial performance indicators such as profit and loss, dividend payments, total assets, and employee numbers, alongside share price data. It includes a share price movement graph comparing Myer's stock with the All Ordinaries Index and calculates potential gains from share price fluctuations. Furthermore, the report identifies and analyzes key financial data for SEEK Limited, providing details on revenue, expenses, and various balance sheet items. Ratio analysis is conducted to assess the company's profitability, stability, and liquidity, offering insights into its financial health. The analysis includes the calculation of profitability ratios like net profit margin and return on assets, stability ratios such as debt to asset and debt to equity ratios, and liquidity ratios like the current and quick ratios, providing a detailed overview of the company's financial standing and performance.

Running head: ACCOUNTING FOR DECISION MAKING
Accounting for decision making
Name of the student
Name of the university
Student ID
Author note

1ACCOUNTING FOR DECISION MAKING
Table of Contents
Part 2 – Company research, graphs and investor information...................................................2
Answer [A].............................................................................................................................2
Answer [B].............................................................................................................................2
Answer [C].............................................................................................................................3
Answer [D].............................................................................................................................3
Answer [E].............................................................................................................................3
Part 3 – Identification of the key financial data and ratio analysis............................................4
Answer [A].............................................................................................................................4
Answer [B].............................................................................................................................4
Reference....................................................................................................................................6

2ACCOUNTING FOR DECISION MAKING
Part 2 – Company research, graphs and investor information
Answer [A]
1. Services and products – women swear, intimate apparel, home wares, cosmetics,
fragrance, electrical goods, toys, handbags, footwear, general merchandise and
accessories.
2. Name of CEO – Richard Umbers (Myer 2018)
3. Salary of CEO – 14,24,793
4. Profit and loss after tax at the end of the year 2016 – $ 60,543,000
5. Payment of dividend – 2.0 cents paid on 9th November 2017 (Myer 2018)
6. Total assets of the company – for 2016 - $ 19,56,342,000 and for 2017 - $
18,78,529,000
7. Number of employees – more than 14,000
8. Share price – on 18th May 2018, High – 0.46 and low – 0.42 (Myer 2018)
Answer [B]
Share price movement graph for Myer holding
20/04/2018
22/04/2018
24/04/2018
26/04/2018
28/04/2018
30/04/2018
02/05/2018
04/05/2018
06/05/2018
08/05/2018
10/05/2018
12/05/2018
14/05/2018
16/05/2018
18/05/2018
0
0.1
0.2
0.3
0.4
0.5
0.6
Myer Holding
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3ACCOUNTING FOR DECISION MAKING
Share price movement graph for All Ordinary Index
20/04/2018
22/04/2018
24/04/2018
26/04/2018
28/04/2018
30/04/2018
02/05/2018
04/05/2018
06/05/2018
08/05/2018
10/05/2018
12/05/2018
14/05/2018
16/05/2018
18/05/2018
5800
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6000
6100
6200
6300 All Ordinary Index
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Answer [C]
Share price movement
From the above it can be identified that the share price of both Myer holding and All
Ordinary Index are upward moving. However, the stock of Myer holding is slow moving
whereas the stock of All Ordinary Index is moving highly (Au.finance.yahoo.com 2018).
Answer [D]
Calculation of gain or loss
Purchase price of Myer holding share on 20th April 2018 was $ 0.355 per share. Share
price on 18th May 2018 was 0.45 per share. Therefore gain per share = (0.45 – 0.355) = $
0.095 per share (Au.finance.yahoo.com 2018).
Answer [E]
As the share price is upward moving at present therefore the investor shall sell the shares.

4ACCOUNTING FOR DECISION MAKING
Part 3 – Identification of the key financial data and ratio analysis
Answer [A]
Key financial data of SEEK Limited for the year ended 2017
Particulars Amount ($000)
Revenue / Sales 24,65,341
Interest Expense (11,259)
EBIT 41036
Net Profit Before Tax 30,213
Net Profit After Tax 11,939
Current Assets 430,567
Total Assets 18,78,529
Current Liabilities 487,014
Total Liabilities 805,661
Total Equity 10,72,868
Answer [B]
Ratio analysis
Ratio Formula 2017
Profitability ratio
Net profit margin Net profit/Sales * 100 0.48
Return on Asset Net profit/Total assets * 100 0.64
Stability ratio
Debt to asset ratio Total liabilities / total asset 0.43
Debt equity ratio Total liabilities / total equity 0.75
Liquidity ratio
Current ratio Current assets / Current liabilities 0.53
Quick ratio (Current assets - inventories) / current liabilities 0.07
From the above ratio calculation it can be found that the profitability position of the
company is poor. Further, the stability ratio is signifying that the company is highly leveraged

5ACCOUNTING FOR DECISION MAKING
and the liquidity ratio is stating that the company is not efficient to off its short-term
liabilities (Myer 2018).

6ACCOUNTING FOR DECISION MAKING
Reference
Au.finance.yahoo.com. 2018. Yahoo is now a part of Oath. [online] Available at:
https://au.finance.yahoo.com/quote/%5EAORD/history?
period1=1524162600&period2=1526841000&interval=1d&filter=history&frequency=1d
[Accessed 28 May 2018].
Myer. 2018. Myer. [online] Available at: https://www.myer.com.au/ [Accessed 28 May
2018].