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Fantastic Holdings Limited & Nick Scali Furniture - Review of Company Operations | Finance Management Assessment Answers
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Internal Code: ICFI
Task: Fantastic Holdings Limited (ASX: FAN) and Nick Scali Furniture (ASX: NCX) - review of company operations.
Context
There are a number of factors that affect a company's operations. These include such things as customer base, product line and business strategy. Utilising the information provided for both Nick Scali and Fantastic Holdings, review and comment on company operations using the financial results for the financial year ending 30 June 2016. This task requires students to apply knowledge in understanding financial statements and in analysing them. Students also need to research beyond the financial numbers. Using public information, obtain an understanding of the business to complement your analysis of financial statements.
You may structure your response however you think best to present your review. You have been provided with the following information to assist you:
- A summary of the accounting environment (i.e. the financial period, the auditor, key accounting policies).
- An analysis of financial statements using ratios and DuPont analysis. Using the information provided to:
- Explain the link between companies’ decisions in operation or strategy with the financial results.
- Compare FAN and NCX and provide an explanation as to why the two companies’ results are different.
- Reflect on how this information can be used to assist managers in formulating and making business decisions.
- Annual report is available for download.
- Focus your discussion or explanation of the business on the key ratios and financial results provided.
- When comparing the two companies, analyse major differences.
- Understanding of the business: Do you understand how FAN and NCX run their business? Do you know their segment, main source of income and profitability?
- Use of research: Have you read all the information in the annual report? Have you visited the company's’ website?