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 2011 annual report available available at the following address: Billaboing Annual Report 2011
Use the ‘Consolidated' data in conducting their analysis. Note that the 2011 annual report contains comparative data for the year 2010. The assignment will contain two main elements:
Schedule(s) of relevant ratios and other useful calculations
The schedule(s) of relevant ratios and other useful calculations should be incorporated in one or more appendices. Ratios and other calculations should be presented so as to facilitate comparison between 2010 and 2009 data. Students are advised to show the calculations used in determining particular ratios and other figures.
A written report
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 2010 to 2011 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).
the written report is not to exceed 1,500 words (excluding calculations which are to be incorporated in an appendix). Students are required to use the ‘APA system' for the acknowledgment of sources. In order to help ensure that assignments meet required presentation standards, students are strongly advised to use the ‘Presentation check-list' attached to these notes.
Students may, if they wish, seek and use additional information about the company from sources other than the annual report (for example, from newspapers, business magazines etc.).
However, it is not envisaged that students will be engaged in extensive research of this nature and it is expected that the annual report provided will be the primary resource relied upon in completing the assignment.
Students are expected to obtain relevant share price data for the company so that investment ratios (such as a dividend yield ratio) can be calculated. (It is recommended that students obtain the company's share price as at 30 June 2010 and 30 June 2011 for the purpose of calculating relevant ratios on these dates.
Share price data is available, among other sources, from newspapers in the library archived on micro-film/fiche.) Under no circumstances are students to make direct personal contact with the company or its officers (for example by telephone, fax, letter or email) in an attempt to gather further information.