Super Retail Group Limited is an organization that is based in Australia owning as well as operating a portfolio of retail brands throughout New Zealand and Australia. The respective organization was founded in the year 1972 by Reg Rowe that is involved in dealing with auto parts, camping, equipment and accessories, tools, boating, fishing as well as outdoor apparel, and equipment along with sporting apparel and equipment.
The Financial Performance of Super Retail Group Limited is more effective and strong as there was total growth of 43% in online sales operations of the organization. The annual report of the respective company has also become effective in comparison to previous years as there was an increment in the sales volume of the business.
Finance assignment analyzing the performance of Super Retail Group
The aspect of Financial Analysis is associated with the activities through which a company is able to operate the process, budgets, and projects of business evaluation as well as three fiscal transaction activities. In addition to it, this can be able to ascertain the sustainability along with part of the organizational process. But the consideration of the fiscal performance process represents financial ratios that are analyzed in order to recognize the stable entity, solvent ratios, liquidity ratios, and profitability ratios for the purpose of getting an effective monetary investment process.
In relation to Super Retail Group Limited, the financial analysis of the organization can be done by analyzing different financial statements that are covered within the annual report of the organization. Financial reports are those that let an organization keep track of its existing liabilities, assets as well as liquidity. Such type of information can be used by a company in order to manage its debts which can be greatly advantageous to the organization.
Annual reports of Super Retail Group Limited provide assistance to the finance manager of the company in evaluating the financial position, performance as well as changes during the accounting year.
There are three main types of Financial Statements that are covered within financial or annual report of an organization. These main financial statements include Income Statement, Balance Sheet and Cash Flow Statement. These three financial statements of Super Retail Group Limited are given here.
Super Retail Group Limited Financial Report Analysis
Financial Reports cover disclosure of the accounting information to multiple stakeholders regarding financial performance as well as the position of an organization over a particular time period. These reports are a set of documents that shows financial situation of an organization at the end of a financial year.
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Super Retail Group Limited Ratio Analysis
In order to analyze the financial report of Super Retail Group Limited, the technique of Ratio Analysis is considered which will help managers of respective company in evaluating financial status of the business. Therefore, financial position of Super Retail Group Limited is estimated through Ratio Analysis. For analyzing financial report of Super Retail Group Limited, there are several factors which will be estimated.
- Valuation Ratios:
Analysis: Valuation Ratios provides assistance in the process of determining if a stock is overvalued or undervalued or at a fair price. The above table shows the valuation ratios of Super Retail Group Limited are undervalued by 25% as it has low P/Earnings.
- Profitability Ratios:
Analysis: Profitability Ratios assess the ability of an organization in order to earn profits from its sales operations, shareholder’s equity, or assets on the balance sheet. These ratios represent how efficiently an organization generates profit as well as value for the shareholders. The above table shows the profitability ratios of last seven years of Super Retail Group Limited which are 6.50% at present showing effective and better profit margins.
- Liquidity Ratios:
Analysis: Liquidity ratio shows ability of an organization to pay its short debt obligations. In context to Super Retail Group Limited, company is at position in terms of its liquidity as it can pay its short term debts.
- Solvency Ratios:
Analysis: The solvency ratios of an organization state that how well a company can flow cash to cover its long-term debts. Super Retail Group Limited has strong solvency ratio in comparison to last 7 years and hence, it can effectively flow cash to pay its long-term obligations.
Super Retail Group Limited Income Statement
Income statements of an organization are those financial statements that represent the income as well as expenditures of the business. They also indicate whether an organization is generating profit or incurring losses within a specific period of time.
The Income Statement of is given as follows:
|
Particulars |
2021 |
2020 |
|
Sales/ Revenue |
3453 |
2825 |
|
Sales growth |
22.22% |
4.24% |
|
COGS including D&A |
1797 |
1555 |
|
COGS excluding D&A |
1498 |
1273 |
|
Depreciation & Amortization Expense |
299 |
282 |
|
Depreciation |
261 |
236 |
|
Amortization of intangibles |
38 |
46 |
|
CGS Growth |
15.57% |
4.34% |
|
Gross Income |
1656 |
1270 |
|
Gross Income growth |
30.38% |
4.11% |
|
Gross Profit margin |
47.95% |
- |
|
SGA growth |
16.60% |
1.67% |
|
EBIT |
473 |
256 |
|
Non-Operating expense/income |
5 |
7 |
|
Interest expense |
41 |
55 |
|
Interest expense growth |
-25.59% |
188.48% |
|
Earnings before tax |
428 |
156 |
|
EBT margin |
12.39% |
- |
|
Income Tax |
127 |
46 |
|
Consolidated Net Income |
301 |
110 |
|
Net Income growth |
173.14% |
-20.89% |
|
Earnings Per Share (EPS) basic |
1.33 |
0.56 |
|
EPS (Basic) growth |
139.27% |
-20.20% |
|
EPS (Diluted) |
1.32 |
0.55 |
|
EPS (Diluted) growth |
138.88% |
-20.14% |
|
EBITDA |
773 |
538 |
|
EBITDA growth |
43.61% |
72.88% |
|
EBITDA Margin |
22.37% |
- |
|
EBIT |
43 |
256 |
Analysis: The income statement of Super Retail group Limited shows that company has strong profit margins in the year 2021 in comparison to last 7 years. Total revenue and net income of respective company both are high as compared to previous years which shows high profitability within organization.
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Super Retail Group Limited Balance Sheet
Balance sheet is a financial statement that contains the details of the overall assets and liabilities of an organization at a particular point of time. It is considered a key financial statement used by a company to evaluate the financial performance of its business.
The Balance Sheet of is given as below:
Analysis: From the above Balance Sheet of Super Retail group Limited it is analysed that company has more assets in the year 2021 as compared to previous years and along with this, it has relatively less in comparison to assets. Therefore, company has strong financial base of its business.
Super Retail Group Limited Cash Flow Statement
A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period. The cash flow statement of Super Retail Group Limited is as follows:
Analysis: From the above Cash Flow Statement of Super Retail group Limited it is analysed that company has strong cash inflows in comparison to cash outflows that results in effective cash position of the company.
Frequently Asked Questions (FAQs)
1. What does an annual report of an organization include?
Answer: Annual reports of an organization include financial statements like income statement, balance sheet and cash flow statement. It also covers analysis of the financial ratios of the business.
2. What is the significance of analyzing annual reports of a company?
Answer: The importance of analysing company’s report is that it helps in determining financial position of the business along with ascertaining cash inflows and cash outflows.
3. Describe benefits of preparing annual reports of an organization.
Answer: The key advantage of preparing annual reports of an organization is that it enables a company in identifying the areas in which the business is lacking behind.
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