Financial Analysis of I.T Ltd. - 4164 Words

Company background I.T Limited (0999.HK) is an investment holding company based in Hong Kong. It was listed on the main board of The Hong Kong Stock Exchange on 4-March-2005. The company offers a wide range of apparel products. It sells its products as well as offers a variety of national and international brands through its network of retail stores. As of February 28, 2011, it operated 392 stores in Hong Kong and Mainland China. Objective To undertake a comprehensive analysis on the financial performance of I.T. Limited. Detailed financial ratio analysis will be performed. An estimation of the firm’s cost of equity capital and weighted average cost of capital will also be provided. Horizon of analysis We will focus on its†¦show more content†¦The company has simply retained some of the profit in each year into reserves. Consolidated cash flow statement (Referring to appendix A - table 9) The company has improved its cash flow generation as its business grew. The profitability of the company increased, and so as the cash generated from operation. And since the company has increased in size, it has increased its ability to finance from banks, therefore it also increased its cash generated from financing activities. Although the company has increased investment in fixed assets and hence the cash outflow from investment, this is offset by the increase in cash flow from operation and financing. II. PERL (Performance, Efficiency, Risk, Liquidity) analysis (Referring to appendix B and C) 1) Performance Profit margins (Gross, operating, net) Gross profit margin keeps increasing. The latest figure is 63.35%, which is a very high margin. This is probably due to the increased brand image of the company, hence the company can increase the selling price of the products. Also, the company shifted the focus on selling products of its own brands more than imported brands, this also increased the gross profit margin. Both operating and net profit margin are also in an increasing trend (despite year 2008/09, a special year which financial crisis happened). But it is worth noting that the current margins are 12.08% and 10.12% respectively, which show a great difference from gross profitShow MoreRelatedFinancial Analysis of I.T Ltd.4152 Words   |  17 Pagesbackground I.T Limited (0999.HK) is an investment holding company based in Hong Kong. It was listed on the main board of The Hong Kong Stock Exchange on 4-March-2005. The company offers a wide range of apparel products. It sells its products as well as offers a variety of national and international brands through its network of retail stores. As of February 28, 2011, it operated 392 stores in Hong Kong and Mainland China. Objective To undertake a comprehensive analysis on the financial performanceRead MoreDell Case Study Strategic Managemen1426 Words   |  6 Pagescom, www.gateway.com, www.sec.gov/edgar.shtml )_______ )_______ )_______ Introduction †¢ Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Initially the name of the company was PCs Ltd in 1984 but later it was changed to Dell Computer in 1987 when company got listed in stock exchange. †¢ The company started with small operations through PCs by buying retailers surplus stocks at cost, then powering them up with graphics cards, hardRead MoreGaleries Lafayette3934 Words   |  16 Pages | | |[pic] | |Haussmann Flagship Paris, |Store of I.T. Ltd HK in Causeway Bay | |Galeries Lafayette | | The scenario of big shopping by visiting mainland Chinese in HN HK makesRead MoreAff2491 Company Reporting2585 Words   |  11 Pagestutorials in week 12. 1 Part A: Accounting for income tax (7 marks) For journal entries, narration is NOT required. Question (a) 3.5 marks The accounting profit before tax of Happy Star Ltd for the year ended 31 December 2012 amounted to $15,000 after including the following information. The financial year of the company was from 1 January 2012 to 31 December 2012. Plant: Opening balance based on accounting as at 1 January 2012 was $100,000. Ending balance as at 31 December 2012 was $100,000Read MoreManagement of Change in Banking Sector1431 Words   |  6 Pagesdistinct phases. They are as mentioned below: †¢ Early phase from 1786 to 1969 of Indian Banks †¢ Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. †¢ New phase of Indian Banking System with the advent of Indian Financial Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I – The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal BankRead MoreProfit Maximization vs Wealth Maximization5736 Words   |  23 Pagesessentials tools for us to expose our skill as a future responsible managerial post. The preparation of this project report is based on the financial analysis of annual reports consecutive years of five public limited companies, using Ratio analysis and other tools. The scope of the project report is limited to the study of financial position and analysis of the financial objectives of the companies on the basis of published data available. My work in this project is therefore a humble attempt towardsRead MoreFinancial Modeling Techniques For Risk Adverse Client Who Is Seeking For Long Term Investment2960 Words   |  12 PagesLimited (WOW) and REA Group Ltd (REA). These three stocks are listed on the Australian Securities Exchange (ASX) 100 index. According to the demand of client, we first identified the portfolio with the lowest risk, utilizing the Capital Asset Pricing Model (CAPM). We then successfully identified the new portfolio investing $200,000 in the local minimum portfolio and borrowing $100,000 from risk-free asset. . Based on the appropriate data collection, calculation and analysis, we proved that this newRead MoreEssay about Burberry Strategic Analysis3193 Words   |  13 PagesTable of Contents Executive Summary1 Strategic Review A)Strategic analysis of Burberry i. Environmental Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦1-3 ii. Resources and competence analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3-4 iii. Purpose/culture/stakeholder analysis4 B) Recommendation for future development i. Three options suggested using TOWS Matrix5-6 ii. Chosen strategic option6 Appendices and Bibliography7-13 Executive Summary This report is a strategic review of Burberry PLCRead MoreHuman Resource Management and Business Strategy5165 Words   |  21 PagesBusiness Strategy | | | Abstract Human resource strategies of the group Sun City International have been identified and analysed for purposes of this report. While reviewing the different related literature this report attempts, through an analysis of external and internal factors, to examine how strategic management may help to deal with challenges and changes in a company, closely linked to the human resource department of the group. Finally, the impacts of all the possibilities and pastRead MoreThe Impact of Internal Auditing on the Telecommunication Industry7410 Words   |  30 Pagespolicies established by management. An audit is not limited to the review of the management process in the accounting and financial areas alone. All department of the organization must be managed so that all can benefit from an independent objective review. The scope of internal audit spans the review of all the functions of the organization. It includes technical, commercial and financial aspects that are secured, accounted for an d managed within the organization. Moreover, the internal audit department