Financial report analysis
The following report is an analysis of the consolidated accounts for Hallenstein Glasson Holdings Ltd (HLG) based on the 2013 financial statements and the ratio analysis is based on the group account figures. The terms of this report is to firstly, determine the strengths, weaknesses and prospects of HLG and secondly, to determine if the shares are favourably priced?
Hallenstein Glasson Holdings Limited is a holding company. The Company, through its subsidiaries, is a retailer of men’s and women’s clothing in New Zealand and Australia. The Company’s segments include Hallenstein Bros Limited (New Zealand), Glassons Limited (New Zealand), Glassons Australia Limited (Australia), Storm (Retail 161 Limited) …show more content…
Ideally the difference between this and the Income statement should be mostly depreciation charges. HGH cashflow statement differs with by taxation charges, prepayments and Christchurch Earthquake insurance income.
Net Cash Flow
NIAT + Dep 28131
Approx = NCF 26200
8. Long term Funding accounting helps insure transparency. It is one of the factors that allow potential lenders, investors and buyers to determine the true value of a company. It also helps managers plan for the company's future cash needs. HGH has no long term debt historically and has good working capital cover with twice cover by equity to non current assets and working capital ratio of 2.23. This compares to both PPL and KTHDY with current ratios of 2.23 and 2.03 respectively.
Share Price Analysis
By comparing price and earnings per share for a company, one can analyze the market's stock valuation of a company and its shares relative to the income the company is actually generating. Stocks with higher (or more certain) forecast earnings growth will usually have a higher P/E, and those expected to have lower (or riskier) earnings growth will usually have a lower P/E.
Earnings Per Share
# Shares 59649
Using the Reuters valuation for P/E ratio for HGH of 15.21 and EPS of 0.35 it is possible to