Analysis of the profitability, efficiency, liquidity, gearing
The main purpose of this assignment is to provide students with the opportunity to apply the knowledge and skills acquired during the semester to a practical task involving the use of ‘real-world’ accounting information. In particular this will enable you to gain insights into and information about the business of Billabong Limited, a merchandiser of surfwear and other outdoor action clothing, using the published financial statements of the company as your primary data source. This is intended to consolidate students’ accounting knowledge and skills. Students are required to complete the assignment in groups of three or four and this is intended to foster the development of the co-operative work skills that will be of importance in most employment contexts.
The basic requirement is to make a general analysis of the profitability, efficiency, liquidity, gearing (leverage), and investment performance of Billabong Limited using the information available in the company’s 2016 annual report available available at Billaboing Annual Report 2017 .
Students are to use the ‘Consolidated’ data in conducting their analysis. Note that the 2017 annual report contains comparative data for the year 2016. The assignment will contain two main elements:
The written report should:
- Explain briefly what is revealed by the ratios and other calculations in the context of the company’s profitability, efficiency, liquidity, gearing (leverage) and investment performance. In particular, any important changes from 2016 to 2017 should be identified, discussed and, where possible, explained.
- Provide an overall assessment of the company from the perspective of existing and potential equity investors (shareholders).