Comparing between harvey norman and wesfarmers ( financially) Essay

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

Assignments Assignment Example | Topics and Well Written Essays - 750 words - 6

Assignments - Assignment Example It relates an argument that exist between the beer producing company (Miller Coors) and the Boricuas For a positive image. It cites communications between the various parties and assumes a business tone. The writer wants us to understand and feel the tension between the two parties; he quotes specific persons, however, the reader fails to give an opinion on the matter. The two documents offer insightful current information in an understandable format. The first article presents the argument that the installation of the bike corrals will give a solution to the increased demand for bike parking. The writer supports the claim by presenting evidence from sources such as the DOT website and individuals, Aussie Saavedra a 22 year old musician who shares the agony of searching for a bike parking. The writer’s opinion supports the claim that the installation of the bike corrals will ease the parking troubles especially for those that park illegally, by locking their bikes on trees or street signs. The second article is based on the argument that the Coors Light Company produced Beer Cans that offended the Puerto Ricans. The writer goes ahead to clarify his claim by presenting the argument between the Coors and the Boricuas For a positive image. He quotes various statements that each party presented in their defense but supports no party. The first document has clear cut sections that are ideally independent since the writer presents a different idea in each section. The second document, however, has section that overlaps and are dependent on each other making it hard to understand one without reading the other since the dialogue between the two parties seems to flow. The paragraphs in these documents are medium in size and are mutually exclusive but convey the flow of thought. The organization of the documents made it possible to skim through the document and get the gist. The documents are arranged in such a way that the most