Contents

• Introduction 3
• About the companies 3
• Premier Investments Limited 3
• Super Retail Group Limited 3
• Financial performance of the companies 4
• Profitability ratios 4
• Liquidity ratio 6
• Solvency ratio 8
• Share market performance ratios 9
• Other factors that affect company’s current performance 10
• Preferred company to invest 11
• Conclusion 12
• References 13
• Annexure 15
• Annexure 1 15
• Income statement for Premier Investment Limited 15
• Balance sheet for Premier Investment Limited 16
• Important ratios for Premier Investment Limited 17
• Annexure 2 18
• Income statement for Super retail group limited 18
• Balance sheet for Super retail group limited 19
• Important ratios for Super retail group limited 20

Description

Financial statement is a quantitative reflection of the financial status of an organization. The analysis of financial statement assists to evaluate the company’s outlook and associated uncertainties occurred in the process of decision making in the business. The principle objective to analyze the financial status of a company is to determine its growth prospect and performance level. The relevant, reliable and condensed financial statement of an organization helps to determine the liquidity and profitability level (Franco, Kothari, & Verdi, 2011). Thus in the present paper we will analyze and compare the financial statement of Premier Investments Limited and Super Retail Group Limited with the help of their balance sheet, income statement and cash flow statements.