BAO1101 Accounting for Decision Making - Accounting Analysis Assignment Help

(a) Brief Description of Each Company

Table 1: Comparative Description of Each Company

(b) Graphs, Share price table and All Ordinaries Index of Each Company

Table 2: Closing Prices of HVN with All Ordinaries Index from 02-September-2019 to 07-October-2019

Chart 1: All Ordinaries Index Chart

Chart 2: HVN Share Price Closing

Chart 2: HVN Share Price Closing Comparison with AORD

 (c) Overview of Share price Performance

Strong financial health means that HVN's current cash and short-term investment investments will cover all of its expected obligation payments. This involves HVN managing its cash and costs properly, a major determinant for the health of the company. HVN seems to have used leverage well, producing a total operating money of 0.44x of the prior year's gross indebtedness. This is a strong sign that debt is fairly covered by money. The stock price of HVN is trading at below its true value which is currently low in terms of the market sentiment for the stock. The stock price of HVN is below the average of the group. (St, 2019). The stock dipped 12¢ on 3rd October when the index dipped by 141.6 points, after announcing the dividend the shares of HVN shows a strong future with the improving economic condition of the country. The broker indicated that the international company of Harvey Norman was a major driver of earnings growth, and shows signs of slowing in some countries during the second half of FY19. The international economic recession from the US-China war, in the time of monitoring of the trade war between China and the United States, benchmark rates and share prices are heavily influenced the international and domestic threat is unpredictable in the economy, where all the industries are impacted irrespective of their direct consequences. In this war Australia is suffering because the United States is its main strategic ally, while China is its main commercial partner. The battle could lead not to a US-centric economic system but to an economic system universal in the future. The threat of rough Brexit and challenging comparable for the group's activities in New Zealand (a region where Harvey Norman is aggressively expanding) are other winds to be competed for by Harvey Norman (Motley Fool Australia, 2019).