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Analysis of Fantastic Holdings Limited

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Executive Summary
This paper employed an examination and analysis of Fantastic Holdings Limited and its subsidiaries (FHL) and Nick Scali Limited (NSL) 2010 annual reports, both deals with selling of furniture & fixtures.   The analysis involved investigation and interpretation of financial information and ratios.   The choice of each company’s accounting policy on inventory and lease were illustrated.   The impact on the financial results and ratios of such choice of accounting policy were also discussed.


Ratio Analysis
(Sources: Annual Reports of FHL and NSL for 2010, 2009 & 2008, Carlon 2009)

Ratio Measures FHL NSL
2010 2009 2010 2009
Profitability
Gross profit ratio Margins between selling price and cost of goods sold 45.66% 44.94% 62.73% 58.08%
Operating expense ratio Cost incurred to support each dollar of sales 40.58% 39.15% 46.82% 49.92%
Cash return on revenue Ability to turn sales into dollars 4.99% 6.11% 20.32% 13.04%
Return on assets Overall profitability of assets 16.34% 20.83% 42.08% 21.47%
Return on equity Profitability of equity 21.79% 26.32% 56.48% 28.13%
Profit margin Profit generated by each dollar sales 6.13% 6.48% 15.99% 8.38%
Asset turnover Efficient use of assets 2.66 3.21 2.63 2.56

Solvency
Financial leverage Extent the assets is financed by liabilities 1.85 1.77 1.84 1.77
Debt to assets Percentage of total assets provided by creditors 45.95% 43.57% 45.59% 43.39%
Times interest earned Ability to meet interest payments as they come due 43.71 64.05 NA NA

Liquidity
Inventory turnover # of times on average the inventory is sold 2.78 3.27 2.82 2.67
Days in inventory Days it takes to sell the inventory 131 112 129 137
Receivables turnover # of times on average the receivables are collected 120 158 251 158
Days receivables Days it takes to collect from customers 3days 2days 1day 2days
Payables turnover # of times on average the payables are paid 14.38 21.63 9.84 10.69
Days payables Days it...

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MLA Citation

"Analysis of Fantastic Holdings Limited". Anti Essays. 16 Dec. 2018

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APA Citation

Analysis of Fantastic Holdings Limited. Anti Essays. Retrieved December 16, 2018, from the World Wide Web: http://parimatch-stavka7.com/free-essays/Analysis-Of-Fantastic-Holdings-Limited-383707.html


Mama Medium | #154 - Red Storm 154 01-19-2016 | Uncategorized