Reference no: EM132463176

2019

• Operating Activities 372.85
• Investing activities (66.20)
• Financing activities (246.29)

2018

• Operating Activities 454.17
• Investing activities (303.49)
• Financing activities (68.10)

2017

• Operating Activities 425.14
• Investing activities (198.77)
• Financing activities (287.12)

Huge discrepancies in investing and financing activities,

Investing:

• payments for purchase of equity accounted investments (0.43) 2019, (4.26) 2018 and (8.95) 2017
• Loans granted to joint venture entities extra high in 2018 (94.88), while 2017 (7.59) and 2019 (5.18)
• Purchase of investment properties low in 2019 (27.88) while 2018 (125.66) and 2017 (114.75)

Financing:

• Proceeds from Syndicated Facility (25,000) 2019, 70,000 in 2018 and 210,000 in 2017
• Dividends paid was low in 2018 at (267.33) where as 2017 was (334.96) and 2019 at (342.122)

These are my from my research from Harvey Norman.

The unit of measurement is in millions
() refer to negative numbers

Question 1: Basing purely on data from 2019 I believed Harvey Norman is in its stability/maturity phase ceasing to invest in new projects, reaping benefits from previous investments and settling its financial obligations. After analyzing 3 years, I am now unsure as of what stage of the cash flow life cycle harvey norman is currently in.

Question 2: refers to analysing the trend. Is it considered to be financially healthy?

Question 3: Apart from operating activities there are huge discrepancies in investment and financing activities. Does this affect financial health? Or does the consistent operating activities indicate good financial health.