Industry analysis
While Harvey Norman trading as a multi-sector business selling computer, electrical, furniture and bedding goods, the retail industry in which HVN operates involves larger range of goods and services (all customer consumables). The largest product segment is clothing, footwear and accessories. However, driven by growth in product technology and functionality, electrical goods have overtaken goods from department stores over the past five years with several other major competitors (Dick smith, Office works etc.) who kept pressure on HVN.
According to Australian Bureau of Statistics, the sector has been grown modestly over 2011-12, with sales increasing by 1.5% to $21600 million. …show more content…
8. What is the most likely prospect for this company in next year, in next five years, and in the long run? And why do you think this prospect is the most likely?
In next year, ?
In five years, develop more industry?
In a long run, it should pay more attention on the development and research apartment to its own product which is high cost performance ratio. ? not sure, we need to discuss
9. How did the company perform in the last three years? What were the revenues, expenses, and cash flows?
The net income increased slightly from 2009 to 2011, and it keeps a same level around $230,000. The net cash and cash equivalents increase from $61375 in 2009 to $118729 in 2011. However, the net cash increase primarily comes from the cash increase in financing activities and net cash from operating and investing activities decrease.
Revenues: | 2011 | 2010 | 2009 | Sales revenue | 1,556,384 | 1,344,455 | 1,440,651 |
Expenses:
| 2011 | 2010 | 2009 | Total expenses | -1,150,453 | -1,050,877 | -1,069,517 |
Cash flow: | 2011 | 2010 | 2009 | Net cash flows from operating activities | 358973 | 386867 | 442502 | Net cash flows used in investing activities | -366726 | -163040 | -240262 | Net cash flows used in financing activities | 25572 | -184292 | -119527 | Cash and cash equivalents at the end of the year | 118729 | 100910 | 61375 |
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