I can’t believe we’re really up to our last ACCT11059 assignment! This has been really interesting for me and I’ve tried to keep things brief, but there is a lot to talk about. My company, OrotonGroup, posts regular ASX reports to their website. This means there are many ways the ratios support earlier comments and observations I had made all the way back in Assignment #1: My draft, Brooks, Ralph, & Zac. Thus, I’ve tried to frame my analysis in this fashion (pardon the pun) while addressing the key accounting drivers we were asked to review:
Return on Net Operating Assets (RNOA), cost of capital and Net Operating Assets (NOA). The two key accounting drivers of RNOA are Profit Margin (PM) and Asset Turnover (ATO)
I’m really looking forward to seeing if there are any correlations between my ratios and other businesses within the fashion/retail world, and other industries. OrotonGroup went through a number of changes; bought and sold, opened and closed businesses during the reporting time years 2012 – 2015. Additionally, they experienced really low margins and under-performing ventures. This often meant little correlation between the ratios.
Here goes, here is my final draft.