Business and Accounting Decisions - Billabong

Jagpreet brar,30304118

Inderjeet  singh sidhu,30308985

Business and accounting decisions

BILLABONG

Billabong was conceived after 1973 when Gordon and Rena shippers were the first to create surfboard and first leg –rope and high quality board shorts. Furthermore, amid 80's billabong went universal and sent out their items to California, Japan, New Zealand, and Europe. Amid 90's billabong had take the position/status of #1in Australian waters furthermore joined with the internationals and on its 25th commemoration billabong one new plant, at present it is included in numerous advancements furthermore supports numerous occasio

RATIOS

• Profitability ratios: in business efficiency is measured by profitability. And profitability refers to the ability of a firm to earn profit.  such ratios measuring the profitability are known as profitability ratios

1. Return on equity(ROE) =  net profit *100/average equity (excluding OEI)

                2013 = (859,541)*100/316,834 = (271.2) %

                 2014= (233,712)*100/270,024 = (86.5) %

                       2. Return on assets (ROA) = EBIT*100/average total assets

                    2013 = EBIT = earnings before interest and tax

                                          = {(653,871) +11294}

                                            = (642577)

                        ROA = (642,577)*100/1,019,292

                          = (63.04) %

              2014 = EBIT = {(135,236) +35539}

                                     = (99697)

                             ROA= (99,697)*100/751,866

                                    = (13.25) %

3. Net profit margin = EBIT*100 /SALES

2013 = (642,577)*100/1,107,492

              = (58.02) %

2014= (99,697)*100/1,125,454

           = (8.85) %

4. GROSS PROFIT MARGIN = GROSS PROFIT*100 /SALES

                        2013= GROSS PROFIT =REVENUE – COST OF GOOD SOLD

                                                              =566,026

                         GROSS PROFIT MARGIN = 566,026*100/1,107,492

                                                   =51.1 %

2014= GROSS PROFIT=569,696

•              =569,696/1,125,454

                         =50.61

The above table demonstrates that despite the fact that seeing the value and the various proportions are negative because of the adversity happened however then the losses have diminished and because of this the proportions must part better when compared with the most recent year i.e. 2013. In any case, the gross benefit for the year has diminished and it can be due to: