Financial Statement Analysis of Quiksilver Inc and Billabong International Limited - Assignment Example

The paper "Financial Statement Analysis of Quiksilver Inc and Billabong International Limited" is a wonderful example of an assignment on finance and accounting. This paper has been designed to provide a deep understanding of the financial statements of Quiksilver. Inc and Billabong International Limited in order to provide an investment decision advice to one of my clients Mr. XYZ regarding which of the aforesaid company shall be a better company for him to invest his money and ensure a better return from the same.

Based on my analysis of the financial statements of both the company, I would like to advise my client to invest his money in Quiksilver. Inc

As even though both the company has been making losses in their most recent years, Quiksilver. inc has shown signs of improvement and has much better profitability ratios and larger market share with rising sales and lowering expenses along with stronger EPS and operating returns. Further, the company has outperformed many of its products and emerged as a market leader. On the other hand, Billabong has incurred huge losses for the current year and is very likely to get liquidated with a threat to its going concern assumption along with negative income and shown characteristics of higher risks with lower returns for its investors. Even though the company is still better off in terms of its liquidity and debt-paying abilities rising losses and negative returns with declining sales and rising expenses is an area of great concern for Billabong International Limited.

Structure of the Assignment

1. Background: This segment highlights a brief background of the company Billabong International Limited along with major competitor Quiksilver. inc

2. Analysis of the Income Statement: This section makes a complete analysis of income statements for both the company using both vertical and horizontal analysis.

3. Analysis of Balance Sheet: This section provides a detailed analysis of the Balance sheet for the company using both vertical and horizontal analysis.

4. Liquidity Analysis: This section looks upon the liquidity position of both the companies and draw inferences from the same.