University of Ballarat Australia

Accounting for Managers

(BSMAN 3009)

Company Analysis and Report

Student Name : Xie Shanling

Student ID : G1032489R

Due Date : 29/09/2013

Submitted to : Mr. Yang

Word counts : 2701 words

(exclude references)

Table of content

1. INTRODUCTION 3

1.1 Rule 7: Principal Actively 3

2. A brief introduction of DANG and YOUKU 3

2.1 Introduction of DANG 3

2.2 Introduction of YOUKU 3

3. SWOT ANALYSIS 4

3.1 SWOT analysis for DANG 4

3.2 SWOT analysis for YOUKU 4

4. RULE 1: FINANCIAL HEALTH 5

5. PROFITABILITY 5

5. 1 Rule 2: Management Assessment 5

5.1.1 Market Capitalization 5

5.1.1.1 Market Capitalization of DANG 5

5.1.1.2 Market Capitalization of YOUKU 6

5.1.2 Benchmark of Lincoln Indicators 6

5.1.3 Calculation of four ratios for DANG 6

5.1.3.1 ROA 6

5.1.3.2 ROE 6

5.1.3.3 EPS growth 6

5.1.3.4 Revenue Growth 7

5.1.4 Calculation of four ratios for YOUKU 7

5.1.4.1 ROA 7

5.1.4.2 ROE 7

5.1.4.3 EPS 7

Formular: EPS = net profits/total shares. 7

5.1.4.4 Revenue Growth 7

5.2 Rule 3: Outlook/Forecast 8

5.2.1 Forecast for DANG 8

5.2.2 Forecast for YOUKU 8

6. MARKET PERFORMANCE 8

6.1 Rule 4: Share Price Value 8

6.1.1 Estimated share price of DANG 8

6.1.2 Estimation share price of YOUKU 9

6.2 Rule 5: Share Price Sentiment 9

7. LIQUIDITY AND SIZE 10

7.1 Rule 6: Liquidity and Size 10

7.1.1 Liquidity ratio of DANG and YOUKU 11

7.1.1.1 Current ratio and Quick Asset ratio of DANG 11

7.1.1.2 Current ratio and Quick Asset ratio of YOUKU 11

7.1.2 Trading volume of DANG and YOUKU 11

8. CONCLUSION 12

9. REFERENCE 13

10. APPENDICES 14

10.1 Ratios 14

10.2 Annual Report of DANG (enclose) 14

10.3 Annual Report of YOUKU (enclose) 14