Departmental stores in India: financial performance analysis

2021 ◽  
Vol 11 (3) ◽  
pp. 1-28
Author(s):  
Rohit Bansal ◽  
Sanjay Kumar Kar
Keyword(s):  
Portfolio Management ◽  
Financial Analysis ◽  
Security Analysis ◽  
Institutional Investor ◽  
Financial Statements ◽  
Investment Strategy ◽  
Market Risk ◽  
Content Type ◽  
Financial Ratio ◽  
Dupont Analysis

Learning outcomes After completion of the case, students will be able to understand the following: how to understand financial statements, income statements and cash-flow statements with the help of ratios; understand the concept of shareholding pattern along with different entities, namely, non-promoters, foreign institutional investor, domestic institutional investor and others; financial ratio analysis with traditional DuPont and extended DuPont analysis; understand the differences between comparable firms; how to analysis return, risk, covariance, correlation, market risk and capital assets pricing model (CAPM) and how to suggest an appropriate investment strategy. Case overview/synopsis The case presents company background and financial statements of four companies listed under departmental stores in India, namely, Vmart retail, V2 retail, Avenue Supermarts (known as DMart) and future retail. Students are asked to determine, which company is performing better to make a recommendation for investment. Students learn the tools of financial ratio i.e. profitability, efficiency, liquidity and market-based ratio along with the traditional DuPont decomposition and the extended DuPont analysis. Students also learn how to measure stock return, standard deviation, covariance, correlation, market risk and CAPM. Complexity academic level This case is suitable for management accounting, financial analysis and security analysis and portfolio management courses at the post-graduate or graduate levels. The case can be used in similar courses such as in financial statement analysis courses or security analysis and portfolio management courses. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS: 1 Accounting and finance.

How well can investors diversify with commodities? Evidence from a flexible copula approach

2019 ◽  
Vol 36 (2) ◽  
pp. 183-206 ◽  
Author(s):  
Panos Fousekis ◽  
Vasilis Grigoriadis
Keyword(s):  
Financial Crisis ◽  
Portfolio Management ◽  
Design Methodology ◽  
Futures Markets ◽  
Investment Strategy ◽  
Sharp Contrast ◽  
Commodity Futures ◽  
Content Type ◽  
Commodity Futures Markets ◽  
Copula Approach

Purpose This paper aims to investigate empirically the linkages between stock and commodity futures markets. Design/methodology/approach It involves the application of a flexible copula approach to weekly total returns from the S&P 500 index and from three commodity sub-indices (agriculture, metals and energy) from 1995 to 2017. Findings Co-movement is by no means frequent and symmetric. It was predominantly zero before the last financial crisis, and since then, it is positive and asymmetric. The pattern of asymmetry is consistent with transmission of shocks under extreme negative shocks only. Recently, total returns of commodity futures are very poor. At the same time, commodity futures markets move in step (out of step) with stock markets when the latter plunge (rise), pointing to limited diversification benefits. These appear to justify the concerns of investors and researchers whether including commodities in a portfolio of assets is still a prudent investment strategy. Originality/value It is the only manuscript that combines a flexible copula approach and co-movement measurement along both the positive and negative diagonals. The findings are in sharp contrast with those reported by Delatte and Lopez (2013) and are very important for portfolio management.

scholarly journals Have changes in business practices and reporting standards changed the taxonomy of financial ratios?

2016 ◽  
Vol 31 (2) ◽  
pp. 85-97 ◽  
Author(s):  
Thomas L. Zeller ◽  
John Kostolansky ◽  
Michail Bozoudis
Keyword(s):  
Manufacturing Industry ◽  
Financial Analysis ◽  
Financial Ratios ◽  
Future Research ◽  
Business Practices ◽  
Current Position ◽  
Content Type ◽  
Financial Ratio ◽  
Bartlett’S Test ◽  
Practical Implications

Purpose – Prior research established a seven dimensional taxonomy of financial ratios. The purpose of this paper is to identify the extent to which the previously identified relationships have changed, and if appropriate, to establish an entirely new taxonomy of manufacturing industry financial ratios. Design/methodology/approach – The authors used principle component analysis (PCA) to identify factor patterns for 58 financial ratios over the ten-year period 2004-2013. The validity of employing PCA was confirmed using the Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett’s test of sphericity. Findings – This study identified four additional financial analysis factors beyond the seven established by prior research. Notably, a separate cash flow factor did not surface as was the case in earlier work but an entirely new factor (current position) was identified. Research limitations/implications – This paper leaves to future research to establish the precise causes for the changes to the taxonomy of financial ratios and how to best utilize the new set of factors for financial analysis research. Practical implications – This paper identifies changes in financial ratio relationships to guide future researchers in selecting appropriate ratios for their studies. Originality/value – This study substantially improves and extends prior work in two areas. First, it utilizes advanced statistical methodologies and computing technologies that were unavailable to previous researchers. Second, it investigates not only the current taxonomy of manufacturing industry financial ratios, but also its stability over a recent ten-year period.

Misrepresentation of financial statements

2014 ◽  
Vol 21 (2) ◽  
pp. 215-225 ◽  
Author(s):  
Cenap Ilter
Keyword(s):  
Design Methodology ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Accounting Fraud ◽  
Financial Statement Fraud ◽  
Content Type ◽  
The Public ◽  
Fraud Theory

Purpose – The purpose of this paper is to show the public, in general, and auditors, in particular, that in the absence of control there is always a risk of fraud. Fraud can be done in various forms. Larceny may be the most obvious case of fraud, but fraud may be done in many other ways too. Balance sheet fraud or financial statements fraud is a broader issue; it is far-fetched than a few hundred dollars of a larceny case. In financial statement fraud, the deep down effect may be millions or billions of dollars. Design/methodology/approach – The paper has been designed based on a fraud theory. The author has observed the implications of a possible fraud in a real audit case. The fraud theory has been tested through financial analysis and audit tests. The theory has then been revised and the existence of a financial statement fraud has been proven. Findings – The paper explores that banks and group companies controlled by unreliable owners can lead to misuse of public's funds in accordance with the directives of the owner. Public's money can be transferred to other group companies in an illegal manner – in excessive amounts – and never returned to the bank by means of applying different accounting fraud techniques. Research limitations/implications – Auditors, who may audit group companies that include a bank or banks with deposit receiving and lending rights, should pay attention to the transactions between the group's bank and the other group companies. The lending may be excessive in amount and/or never paid back and the financial statements would be misrepresented covering various fraud schemes. Originality/value – The case that the paper deals with reflects the author's own audit experiences. The names of the companies have been changed but not the essence of the events. From this perspective, it sheds light onto the path of an auditor who happens to be in a similar situation.

Institutional investor management of Australian healthcare property assets as a pandemic-proof asset class

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Jufri Marzuki ◽  
Graeme Newell
Keyword(s):  
Institutional Investors ◽  
Global Financial Crisis ◽  
Institutional Investor ◽  
Investment Strategy ◽  
Portfolio Diversification ◽  
Portfolio Optimisation ◽  
Empirical Examination ◽  
Data Set ◽  
Content Type ◽  
Asset Class

PurposeAs the prolonged effect of the COVID-19 pandemic has materially impacted investment returns significantly, it is more crucial than ever for institutional investors to redefine their property portfolios using assets with better investment management potential and meaningful diversification benefits. The “alternative asset revolution” is gaining traction in the property investment space internationally among institutional investors due to the shifting investment attitudes towards the alternative property sectors. Australia's $205bn healthcare property sector is at the forefront of this revolution due to its societal significance, as well as its attractive investment qualities. This paper investigates the institutional investor management of the Australian healthcare property sector via both the direct and listed channels and empirically analyses its investment attributes.Design/methodology/approachUsing the unique Morgan Stanley Capital International/Property Council of Australia quarterly data set for Australian direct healthcare property over 2006–2020, the risk-adjusted performance and portfolio diversification potential direct healthcare property and listed healthcare were assessed. A constrained mean-variance portfolio optimisation framework was used to develop a six-asset portfolio scenario to analyse the portfolio added-value benefits of both direct healthcare property and listed healthcare in a mixed-asset investment strategy. A similar set of analysis was performed using the post-global financial crisis (GFC) quarterly time series of 2009–2020 to investigate the healthcare asset class' performance dynamics in the post-GFC investment timeframe.FindingsThe results indicate that direct healthcare property and listed healthcare offer two key advantages for institutional investors in managing their property portfolios: (1) a stable yet superior risk-adjusted performance and (2) significant portfolio diversification potential in managing their property portfolios. Importantly, both direct healthcare property and listed healthcare provided valuable contributions in strengthening an investment portfolio's performance. The post-GFC sub-period analysis revealed a consistent conclusion regarding the healthcare asset class's performance attributes.Originality/valueThis is the first research that provides an independent empirical examination of the strategic importance of Australian healthcare property as a maturing alternative property sector that can serve both investment and environmental, social and governance goals of investors. This research presents a positive investment prognosis for the Australian healthcare property sector to achieve its institutionalised status as a mainstream asset class of the future.

scholarly journals Financial Analysis of MI’s Company Based on Harvard Analysis Framework

2021 ◽  
Vol 5 (2) ◽  
pp. 42
Author(s):  
Guo Jingxian ◽  
Yang Yuanxi
Keyword(s):  
Competitive Analysis ◽  
Financial Analysis ◽  
Financial Statements ◽  
Development Prospect ◽  
Ratio Analysis ◽  
Analysis Framework ◽  
Financial Situation ◽  
Financial Ratio ◽  
Existing Problems ◽  
Financial Ratio Analysis

This paper takes the financial statements of MI from 2017to 2019, and uses Harvard analysis framework to analyse the financial situation of MI. The analysis content mainly includes enterprise macro environment, industry competitive analysis and financial ratio analysis. This paper tried to understand the current situation and development prospect of MI. Based on the analysis of MI’s financial situation under the framework of Harvard, we summarized the existing problems and put forward suggestions.

APPLICATION OF FINANCIAL ANALYSIS IN FUNCTION OF COMPANIES’ LIQUIDITY EVALUATION

2018 ◽  
Vol 28 (5) ◽  
pp. 1725-1732
Author(s):  
Ajsel Usinova
Keyword(s):  
Business Processes ◽  
Financial Analysis ◽  
Financial Statements ◽  
Financial Indicators ◽  
Financial Reports ◽  
Special Contribution ◽  
Financial Ratio ◽  
Financial Condition ◽  
Financial Ratio Analysis ◽  
Master's Thesis

The financial statements represent a "snapshot" of the company's operations in a specific period and one of the main sources of data for evaluation of the financial condition and result of companies and analyze their overall performance. The analysis of financial statements is the use of accounting information in decision-making and investment business. The process of analyzing financial reports is designed to help business people, investors and lenders to learn how to read, interpret and analyze prepared financial statements. Essential tool in the analysis of financial statements is financial (ratio) analysis. The objective of this master’s thesis is to explain the application of financial indicators in the analysis of business processes in general and to give a special contribution to the understanding of the application of financial liquidity indicators. From this point of calculation is illustrated and also made a detailed analysis of the performance of the liquidity situation with specific representative sample of companies in the Macedonian economy.

scholarly journals Learning To Invest A New Frontier

2010 ◽  
Vol 3 (7) ◽  
pp. 9 ◽  
Author(s):  
Michael R. Melton ◽  
Scott P. Mackey
Keyword(s):  
Real Time ◽  
Financial Analysis ◽  
Security Analysis ◽  
Investment Strategy ◽  
Fund Management ◽  
Undergraduate Level ◽  
Technology Students ◽  
Hands On ◽  
New Frontier ◽  
Analysis Platform

The purpose of this paper is to introduce a new and innovative course in the field of Finance, promoting the notion of “hands-on” instruction through the management of real-dollars.  This course solely focuses on the management of such a Student Managed Fund (SMF).  Employing a seminar setting on the undergraduate level, while using the latest security analysis technology, students take part in every aspect of fund management.  From the initial stages of forming an investment strategy, to the later stages of portfolio reallocation, students are grounded in reality.  This paper will illustrate the objectives set forth by the professor(s) and the methods used by the students to accomplish said goals.  The focus will be on the differences in risk preferences and actions due to the management of real money versus simulated “play money,” as well as the benefits garnered from such a course.  In conjunction with the introduction of this new course, this research will formulate the methodology behind the use of a real-time financial analysis platform, such as SDS MarketWatch, to create and manage a portfolio.  Lastly, the benefits of using such a real-time financial analysis platform will be made evident.

Financial ratio analysis of law firm's strategy and job satisfaction

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Seonghee Han ◽  
KiKyung Song ◽  
Eunyoung Whang
Keyword(s):  
Job Satisfaction ◽  
Law Firms ◽  
Strategic Positioning ◽  
Content Type ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Dupont Analysis ◽  
Using Data ◽  
The Relationship ◽  
Capital Intensive

PurposeJob satisfaction along with a work–life balance of attorneys in law firms has become an important issue to the legal industry. This paper examines the relationship between strategic positioning of law firms and the job satisfaction of their associates.Design/methodology/approachUsing 1,108 firm year observations of US law firms from 2007 to 2016, this paper examines how a firm's strategic positioning affects the job satisfaction of its associates. The strategic positioning is measured with two financial ratios derived from modified DuPont analysis: revenue per lawyer (RPL) and leverage (LEV). To compare the level of associates' job satisfaction depending on law firms' RPL and LEV, this paper uses t-tests. In addition, this paper adopts OLS regression and simultaneous equations to examine the relation between law firms' strategic positioning and their associates' job satisfaction.FindingsThis paper shows that associates in the law firms with a high LEV strategy have lower job satisfaction because these firms provide a more demanding work environment than in the firms with a high RPL strategy.Originality/valueThis paper first documents empirical evidence that a firm's strategic positioning significantly influences job satisfaction of its employees, using data on the legal industry which is human-capital-intensive and is considered one of the sectors that provide the most notorious work environments.

scholarly journals Portfolio Management and Investment Strategy of Institutional Investor: An Analysis in Indian Capital Market

2019 ◽  
Vol 8 (9S3) ◽  
pp. 1306-1314
Keyword(s):  
Portfolio Management ◽  
Capital Market ◽  
Descriptive Analysis ◽  
Institutional Investor ◽  
Investment Strategy ◽  
Normality Test ◽  
Management Experience ◽  
Investment Option ◽  
The Impact ◽  
Structured Questionnaire

The purpose of current study is to examine the most preferred investment option among institutional investor in India and analysis the factors which impact their investment strategy in India. The study also attempts to better understand the impact of certain demographic factors such as age, area of operation, type of operation, asset under management, experience and qualification on the behaviour of institutional investor in India .A semi structured questionnaire was used to obtain a total of 30 valid responses was collected from January 2019 to March 2019. Cronbach alpha test and normality test was used to check reliability and consistency in the responses. Descriptive Analysis was done for various variables. Result was presented in the tabular form

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

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