Essays on Coles Myer Limited for an Institutional Investor Considering Case Study

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The paper 'Coles Myer Limited for an Institutional Investor Considering' is a great example of a Finance and Accounting Case Study. This report presents an analysis of Myer Holdings' investment. The analysis is to determine the investment viability of the company. Myer Holdings is a big retail-chain store company with operations all over Australia. It has a total of 67 retail chain stores across the country. A peer analysis with David Jones indicates that Myer Holdings performed better, especially on profitability. Ratio analysis also indicates strong profitability for 2013; the company has efficient and effective use of its assets.

The liquidity of the company is quite low, but this could be due to more investments carried out by the company whereas the company has balanced debt financing. Myer Holdings' strength lies in its wide network of retail chain stores, increasing profit margin, and use of technology whereas its major weakness is the poor management of operating expenses. Currency fluctuations are a threat to the company’ s operations. The operating, as well as financing currency, is the Australian dollar. Any adjustments will result in either a profit or a loss, or it could be offset through currency risk hedging. This information indicates that the company is viable for investment. Introduction Ahead of making any investment decision, it is important to have all the relevant information as regards the investment.

This information is availed through an in-depth analysis of the investment opportunity or the investment entity where one intends to put their money into. In light of this, this report is aimed at analyzing Myer Holdings Limited so as to have an understanding of its investment viability.

The analysis is based on the company operations, a peer analysis, ratio analysis, strengths and weaknesses, impact of currency fluctuations on the company’ s operations, and the investment recommendation based on the analysis. Company Background Myer Holdings Limited was founded by Sidney Myer, a destitute Russian migrant. Sidney Myer was a creative thinker and a great philanthropist. These qualities won him great admiration from people and drove his business success in Australia, among them the Myer departmental stores. Today, Myer Holdings is the biggest retail-chain store in the Australian retail industry. The company operates a total of 67 key retail stores located all over Australia.

The company’ s headquarters is located along Collins Street, Docklands in Victoria, Australia (Myer, 2014b). Myer Holdings has a strong brand that is supported by the recently instituted online, mobile as well as digital presence. This presence has created a strong customer feeling and attractiveness to the company given the convenience that it creates. The company, through customer loyalty (card membership) program, has well over 12,500 members. In addition, the company’ s business is enhanced by over 1,200 suppliers from all over the world and around 54,000 shareholders in its stake along with great community support gained through a stretched record of humanitarian support as well as local community involvement (Myer, 2014a). Myer Holdings offers merchandise for children, women as well as men that span 11 main product groups that include beauty products, handbags, and accessories, cosmetics and perfume, electrical goods, furniture, footwear, toys, homeware, plus other general merchandise (Myer, 2014a).


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