Nobody downloaded yet

Comparing between harvey norman and wesfarmers ( financially) - Essay Example

Comments (0) Cite this document
It should be noted that investors earn from stock investments through two channels—appreciation of stock prices and earnings per…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Comparing between harvey norman and wesfarmers ( financially)
Read TextPreview

Extract of sample "Comparing between harvey norman and wesfarmers ( financially)"

Download file to see previous pages On the other hand, stock price appreciates almost exclusively through good financial results.
Through the use of financial analysis, this paper compares the performance of two companies Harvey Norman and Westfarmers in different financial aspects namely liquidity, profitability, asset efficiency and capital structures. The company’s ability to generate wealth for its stockholders is the ultimate measure of the financial performance of a business organization and should become the basis of where to invest. It should be noted that as opposed to creditors, companies have little liability to its stockholders. Before dividends are paid, current liabilities are first settled together with long term obligations. In fact, payments to stockholders are not required. Thus, stockholders have the last claim in the company’s earnings and if it is able to keep much for them after other liabilities are settled, the business organization’s stock is considered as a better investment.
In this consideration, this paper recommends the use of return of equity as the sole ratio for the investment decision. Thus, investment in Harvey Norman appears to be more profitable than Westfarmers. It should be noted that during the fiscal year 2007, Harvey Norman’s return on equity is 26.74% which represents an increase of 8.7% from the 18.04% recorded in 2006. This is much higher than the 0.125% recorded by Westfarmers in 2007. Thus, we recommend that funds should be better invested in Harvey Norman as it has a better ability of maximizing shareholder wealth through higher ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Comparing between harvey norman and wesfarmers ( financially) Essay”, n.d.)
Comparing between harvey norman and wesfarmers ( financially) Essay. Retrieved from
(Comparing Between Harvey Norman and Wesfarmers ( Financially) Essay)
Comparing Between Harvey Norman and Wesfarmers ( Financially) Essay.
“Comparing Between Harvey Norman and Wesfarmers ( Financially) Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Comparing between harvey norman and wesfarmers ( financially)

Myer Holdings Ltd. and Harvey Norman Holdings Ltd

...? ASSIGNMENT – TRIMESTER THREE, 13 ANALYSIS OF FINANCIAL MENTS OVER A TWO YEAR PERIOD AND ACCOUNTING FOR DECISION MAKING LECTURER’S NAME: _________ TUTOR’S NAME: __________ Date: 8th January 2013 Executive Summary This report sets out a detailed ratio analysis of the financial statements of Myer Holdings Ltd. and Harvey Norman Holdings Ltd. by comparing the ratios of both companies for the years 2011 and 2012 individually and among each other in order to arrive at recommendations regarding the best entity for making investments. Myer Holdings Limited is one of the largest department stores groups of Australia being in the fashion industry since last 100...
7 Pages(1750 words)Essay

Hawley Harvey Crippen Case

... assignment is due Hawley Harvey Crippen otherwise known as Dr. Crippen was an American homeopathic doctor who was given death penalty for murdering his wife Cora Henrietta Crippen. He was hanged in London, Pentonville Prison. He is the first criminal who was caught with the help of wireless communication. In the year 2007 American researches opined that their DNA test results do not prove his guilt. These findings have however been challenged. The case of this American doctor is one of the most notorious British criminal cases. This is also considered as the first case Bernard Spilsbury, the renowned pathologist investigated. Radio was used for the tracking of the criminals; this was strange in that period. Advocates who cry... for the...
5 Pages(1250 words)Research Paper

Business Strategy: The Case Harvey Norman

...must continue offering superior products for the same. Additionally, various products which were previously a luxury such as computers have become a necessity to the lives of most people. According to Inma and Shelda (2006, p. 6), presently people are more conscious about the places they live in and they continuously seek to improve their houses and therefore they are constantly demand for such products. Demographically, the population is rising although at a slow pace and the majority of people especially with the Harvey Norman market are between 20 to 65 years (Anthony, Daniel and Aidan, 2004, p. 309). However, there is a significant chunk of the population which comprises of the old...
8 Pages(2000 words)Research Paper

Financial Statements for Harvey Norman Australia

...? financial ments for Harvey Norman Australia August 27, Financial ment analysis includes using ratios to compare the financial performance of Norman Harvey Australia (Fridson, 2011). The study delves into using the activity, profitability, and liquidity ratios of Harvey Norman Australia (Roth, 2010). The company is publicly listed company granting franchises to business owners in the strategically managed Australian home and office market ( The study veers towards comparing the financial performance of Harvey Norman Australia’s 2010 and 2011 business operations ( Overall, Harvey Norman Australia produced profitable 2011 and 2010 business operations... quick...
9 Pages(2250 words)Essay

Comparing between two companies

...Comparing Between Novartis and Boeing This paper seeks to compare the corporate ethics programs of two companies ly Novartis and Boeing. A corporate ethics program refers to the systematic approach to ethical issues, raising ethical awareness of employees, training employees on a code of ethics, and implementing it. A corporate ethics program entails a code of ethics, an audit system, a reporting mechanism, and mode of communication, training employees on ethics, and an investigation system. Novartis aims at improving global health and becoming the world’s most respected and successful healthcare company. It has various components of a corporate ethics program that include the belief of...
3 Pages(750 words)Research Paper

Marketing Plan for Harvey Norman

...forced to compensate some of its customers who won the suits. This has negatively affected the company because of the tarnished image of illegal practices. Secondly, Harvey Norman Company is not the only compare enjoying the global market. There are also other companies which are ranked as performing companies and they offer stiff competition to Harvey Norman Company, therefore, narrowing down the market share expansion opportunities for Harvey Norman Company (Arens, Weigold& Arens, 2010). Weaknesses Harvey Norman Company has a competitive advantage over other companies dealing in...
12 Pages(3000 words)Assignment

William Harvey

...R.Preeti 12/4/2008 WILLIAM HARVEY William Harvey is one of the greatest s in the history of medicine. He is credited with the laying out fo the details of the circulation system and how the circulation fo blood works in the body. William Harvey was born on April 1, 1578, in Kent and was educated in Canterbury. Later, he was a Fellow of the Royal College of Physicians. He married the daughter of a prominent London physician. Harvey was also known for his yeoman service, and the Harvey Grammar School is still a reality today. He left the world on June 12,...
2 Pages(500 words)Essay

Analyse case study financially

...The Crowne Inn: A ic Case of a Family Business in Turmoil The Problem: The main issue to be resolved in the case of the Crowne Inn is to identify the fair transaction to be accepted for the bar to be sold to Bruce Johnston by his mother Barbara Johnston. It is evident that there are three options for Barbara: 1) have Bruce pay a lump sum, 2) have Bruce pay a smaller lump sum and $500 per month and 3) sell the bar outright to an outside party. The Crowne Inn: In order to identify the best solution, it is essential to understand the original investments and the terms agreed by the owner, Harvey. Harvey started the business with $10,000 loan along with a partner. However he purchased the stock from his...
3 Pages(750 words)Essay

Comparing between

...Comparing Betweeen Comparing Between The two article are concerned with relationship between total dairy products and the associated risks or benefit to controlling type 2 diabetes. According to the ‘Epic-InterAct Study’, it refutes the previous conclusions as inconsistence despite finding a suggestions about the inverse relationship between Cheese intake and risks of type 2 diabetes. The Epic-InterAct Study called for further research to validate the suggestion that consumptions of cheese leads to reduced risks of diabetes. Epic-InterAct Study finds no basis to support the notion that total dairy products consumptions reduces the risks associated with...
1 Pages(250 words)Essay

Comparing between two country

...Comparing between Kenya and Tanzania Introduction Kenya and Tanzania are both countries in the East of the African Continent. Both countries are categorised as developing nations with Kenya overtaking several African economies in terms of economic growth, and prosperity and Tanzania praised for its stable social structures and deeply rooted culture. The two nations have experienced a lengthy history of building their political, economic and social structures that share a lot in common and have remarkable differences (Grawert 68). However, with an actively renewed East African Community, a regional Union that was established by the founding fathers of these nations after independence, challenges of border...
4 Pages(1000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Comparing between harvey norman and wesfarmers ( financially) for FREE!

Contact Us