BAO1101 Accounting for Decision Making - Accounting Analysis Assignment Help

Get Expert Help on Report Writing

(a) Brief Description of Each Company

Harvey Norman (HVN: BHP)
Products 
  • Franchising Operation
  •  Integrated Retail Business 
  • Property Development
  • Digital System
Services Harvey Norman operates under a franchise system in Australia and consistently delivers an unparalleled retail offering to Australian consumers with an extensive product range, cutting-edge technology and market leadership in key product categories.
Name of Chief Executive Officer or Managing Director Kay Lesley Page
Salary of Chief Executive Officer or Managing Director $3.12 million per annum
Profit and Loss after Tax $377.03 million
Latest Dividend Paid  21¢
(11 Oct 2019) 
Size of Business by Total Assets $ 4.58 billion
Number of Employees 5,420
Share Price – 52 Weeks (High and Low) High: 4.644
Low: 2.936

Table 1: Comparative Description of Each Company

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

Date AORD Close HVN Close
02/09/2019 6677.50 4.32
03/09/2019 6673.50 4.29
04/09/2019 6656.10 4.29
05/09/2019 6720.80 4.31
06/09/2019 6752.70 4.34
09/09/2019 6760.10 4.44
10/09/2019 6728.00 4.38
11/09/2019 6752.20 4.38
12/09/2019 6765.70 4.39
13/09/2019 6777.10 4.46
16/09/2019 6782.00 4.49
17/09/2019 6801.70 4.50
18/09/2019 6791.20 4.48
19/09/2019 6825.20 4.53
20/09/2019 6839.00 4.56
23/09/2019 6861.10 4.58
24/09/2019 6856.60 4.53
25/09/2019 6814.70 4.51
26/09/2019 6785.60 4.52
27/09/2019 6824.10 4.54
30/09/2019 6800.60 4.53
01/10/2019 6853.00 4.62
02/10/2019 6753.30 4.63
03/10/2019 6611.70 4.51
04/10/2019 6636.90 4.47
07/10/2019 6686.70 4.48

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). 

Ask a New Question
*
*
*
*
*

Plagiarism Checker

Submit your documents and get Plagiarism report
Check Plagiarism

Chat with our Experts

Want to contact us directly? No Problem. We are always here for you

TOP

  Connect on WHATSAPP: +61-416-195006, Uninterrupted Access 24x7, 100% Confidential

X