The biggest news this week is Harvey Norman’s decline from A3 to A4.
The company reported earnings that were 6 cents lower that the 2011 results. Return on equity also fell and debt increased to $779m, equating to a Net Debt / Equity ratio of 26%. In 2011 HVN’s Reported Net Profit After Taxes was $252.255m. This year reported NPAT fell to $172.411m.
HVN’s intrinsic value has been on a downward trend since 2006. Can management reignite HVN?