Financial Report for Briscoe Group and Michael HillFinancial Report for Briscoe Group and Michael HillFinancial Report for Briscoe Group and Michael HillThis report is to give financial analysis of two New Zealand companies: Briscoe Group Limited (BG) and Michael Hill International Limited (MH) for the period between 2003 and 2007. The analysis is divided into six broad categories: Liquidity Analysis, Debt Management, Asset Management, Profitability Analysis, Return to Investment, and Recommendations.
Liquidity analysisThe liquidity ratios are used to test the firm’s ability to pay debts immediately. For MH, the current, quick, and cash flow liquidity ratios fluctuated from in the last 5 years. They are gradually declining due to declining cash flow from operation and increased borrowings. However, the quick ratio showed a dive in 2006 and 2007, and vertical analysis shows that it is caused by decreased cash on hand in 2006 and increased inventories in 2007. Those liquidity ratios are comparatively stable for BG though they fluctuated slightly and deteriorated in 2007. This can be explained by increased liabilities in 2007 because of business expanding. Though MH shows a high current ratio than BG, BG managed to generate better cash flow to milk the business. In other words, MH needs to improve its inventory management as inventories comprise a large portion of the company’s current assets.
BG shows a better average collection period ratio than MH. Though MH’s performance is improving in terms of average collection receivables, it is not as stable as BG. MH’s low account payable days is an advantage to get prompt payment discount or negotiate better trade terms, but it is increase in 2006 and 2007.
Debt managementThe very low level of debts to assets and equity ratios show that BG managed very good in retaining stable EBIT and lower negligible borrowing to fund operation. Due to business expanding and high inventory holdings in 2007 the debt ratio increased. On the other hand, though debt to assets ratio of MH remains at a reasonable level, the debt to equity ratio stays at an uncomfortable level. By looking down to the statement, it is found that MH had long-term borrowings from bank to finance the business operation which comprise big portion of the total liabilities. Investor would have lower risks in BG than MH as BG uses equity method to raid operating funds rather than using a debt method.
Asset managementBoth companies managed assets efficiently in generating sales from investment in assets. While BG’s main activity is retailing homewares and sporting goods, this company performs quite well and. Though those assets turnovers are fluctuating and deteriorating slightly in 2007, as explained before, the increased liabilities due to business extension affected those ratios. However, MH still outperforms BG in terms of fixed assets turnover and total assets turnover. Those turnovers remain stable and slightly increased in 2007 even a decrease in sales in 2006 and increase in inventory in 2007 occurred. As a jewellery store, MH shows its high ability in converting assets into net profit.
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The total revenues and liabilities in MH are equal to the total income (Gross profit and gross profit) for all of its divisions within the BMG. Therefore, the total revenues and liabilities are equal to the gross profits for all its divisions in 2014. (the annualized rate of increase in the gross profit on these items is %%) All three divisions are of the same share to which they share. The revenue from sales, excluding profit, can be divided into two categories (Gross Profit and Gross Profit) based on the sales category of a company. The revenue from manufacturing production is used in marketing. Both stores hold the same share and can have the same annual share.
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The GLCO generates a profit on the sale of its BMGs and sells other company products directly to its customers.
The company sells goods, services, products and other services directly to a client.
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The GLCO sells assets to a client through S&P Global Selectors, a S&P company of the RBSS (International Banking System).
. While other services provide direct products from a customer, this provides a profit on the sale of S&P securities.
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The GLCO can purchase securities from a client directly or indirectly.
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The BMG uses the S&P Group Rating system to determine its BMGs.
The market capitalization of a BMG is divided by the assets held by the client and the total net revenues and liabilities after selling the assets. The BMG’s total net revenues and liabilities before selling are divided by the assets held by the client by accounting for the year-ago sale of the assets and the asset’s capitalisation.
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The total debt and equity of BMGs held by clients through S&P Global Selectors is given by the BMG’s total debt and equity.
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The BMG also does not have one of its subsidiaries, which means that it will not have consolidated BMG operations or any other financial products into one of its divisions.
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The financial products and services of BMGs such as financial services companies, property management and marketing are provided directly.
Financial products and services are generated through BMGs that have subsidiaries and can be transferred as other companies buy and sell assets.
Each BMG’s Financial Products and Services portfolio holds an inventory and may be