StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Financial Performance of EMAP PLC

Only on StudentShare
Pages 4 (1004 words)
Table 1 shows the major accounts of EMAP PLC for the end of March 2004 and 2005. During 2005, the company was able to generate revenue from all its product lines of 1,068 million, a minimal increase from the 1,050 million recorded in the previous year. The company's asset account shows resources amounting to 835 million, 317 million of which are classified as current assets…

Extract of sample

Specifically, it enables a financial analyst to spot trends in a business and to compare it with the performance of similar business enterprises within the same industry. Financial ratios are grouped into three categories, each showing a different aspect of a company's financial operations. These are profitability ratios, financial leverage ratios and liquidity/solvency ratios.
Profitability ratios measure the ability of the company to generate income from its investments less the costs incurred. The gross profit margin ratio tells us the profit a business makes on its cost of sales, or cost of goods sold. It tells us how much gross profit per peso of turnover our business is earning. Gross profit is the profit we earn before we take off any administration costs, selling costs and so on. The computed operating profit margin, which is the ratio of operating income to sales measures as a percentage of sales, the excess revenue from sales over cost of normal operation excluding financing. Net profit margin, on the other hand, is the ratio of net income to sales. Unlike the operating profit margin, it takes into account the secondary or incidental gains aside from the company's main business operation and all the costs incurred including financing. ...
Download paper
Not exactly what you need?

Related papers

WPP PLC Financial Report
The above ratios reveal that the company had 5.79% return on capital employed in 2004. The gross profit and net profit ratios show that the company had 95.12% gross profit on sales while 10.58% net profit on sales. This gap makes clear that the company is paying heavy operating costs, which is having a decreasing impact on its profitability.…
12 pages (3012 words)
Reg Vardy PLC financial analysis
The company, which is named after founder Reg Vardy, is one of the leading motor retail groups in the United Kingdom. Reg Vardy was initially established as a haulage business at Houghton-le-Spring. Due to the success of the business, it diversified into the sale of vehicles (Yahoo! Finance 2005).…
8 pages (2008 words)
Boots-PLC Financial Report
8 pages (2008 words)
Financial Performance
It is an important section of the companies' annual report, which contains acknowledgement from the external auditors that the company's accounts and financial statements reported present a true and fair view of the company's affairs. This satisfies the government about the accuracy of financial information presented in the Tesco and Sainsbury's financial statements.…
12 pages (3012 words)
Financial Analysis for Ipplepen Plc
As such, the potential of a stock as a profitable investment is often linked to the company's ability to maximise shareholder value which in turn, is mirrored in its financial statements. Financial analysis has gained wide acceptance as a tool in assessing the health and well-being of a business entity. This is also considered as a helpful technique which aids investors in ascertaining the gains…
6 pages (1506 words)
Financial assesment - Aviva PLC
Firms calculate their cost of equity using several methods, the most popular method being Capital Asset Pricing Model (CAPM). This method assumes that shareholders expect a rate of return equivalent to the risk free rate plus a risk premium, and is expressed as -…
16 pages (4016 words)