StudentShare solutions
Triangle menu

Commentaries on a company's performance over last 2 years - Assignment Example

Nobody downloaded yet

Extract of sample
Commentaries on a company's performance over last 2 years

This means that the company’s inventory has been higher than the sales in the year 2012-13. This is not favorable position since inventory piling up indicates that money is tied up in inventory. Then, receivable days have been calculated, and this has reduced in 2012-13 from the previous year. This means that the company is in good position in respect to its debtors since lower receivable days indicates that the company takes less time to collect the receivable amounts. By faster receive of due, collection related problems get reduced, and also the company has improved its profitability and rate of return on investment by better management of funds receivable. Finally, payable days have been calculated which has increased in 2012-13 from the previous year. This means compared to previous year, Morrison has been delaying payment to creditors to conserve cash. This can happen because Morrison has good terms with vendors. Compared to the previous year, Morrison has been holding on to its cash for a longer period in 2012-13. In this section, horizontal analysis is done by measuring the amounts receivable and payable in the two concerned financial years. Amount receivable has reduced in 2012-13 which means that Morrison has shown a better performance in collecting debts this year. This means increased cash which can be used for operational purposes. On the other hand, amount payable has increased in 2012-13. As already explained Morrison may have been holding on to cash and delaying payments for operational purposes. In this section, profitability ratios have been calculated to determine the operating success of Morrison. There has been an increase in the gross profit margin from 1.76% in financial year 2011-2012 to 1.86% in 2012-13. This indicates that the company is enjoying an improvement in its market position, and is in a position to charge higher price for its products which in turn can result in enhanced revenues. However, there has been a 7 percent decline in EBIT (earnings before interest & tax) in 2012-13 from previous year. The major reason attributed is difficult conditions in the market. According to chief executive Dalton Philips “economic backdrop remains difficult for the consumer” (BBC, 2013). There has been also a 6 percent decline in net sales in 2012-13 from previous year, and this can be contributed to Morrison’s lack of online shopping facilities and lesser number of convenience stores as compared to its rivals like Tesco, Asda and Sainbury’s (BBC, 2013). Next, current ratio has been calculated which means a company’s ability to pay its dues and also to garner cash during emergencies. Morrison has a very low current ratio 0.57, and it has been stable in the two concerned financial years. Current ratio lower than 1 usually means the company is at risk and can have liquidity problems in the near future. However, for retail giants like Morrison, current ratio lower than 1 can be acceptable. This is because being a retail company, Morrison can negotiate long periods of credit with suppliers, but can deny large credit to customers. Moreover, Morrison has its own supply chain which means the company can keep track of food supply and can appropriately meet daily needs of consumers resulting in minimum waste (Annual report 2013, p.3). This reduces the cost of inventory pile up. Next, inventory days, receivable days and payable days have been calcul ...Show more


Morrison Supermarket PLC: Performance in 2011-12 and 2012-13 Morrison Supermarkets A Morrison supermarket PLC is the fourth largest retailer in U.K. with annual turnover more than ?18 bn. This paper analyses its performance in the financial years 2011-12 and 2012-13…
Author : diamonddickens
Commentaries on a companys performance over last 2 years essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Commentaries on a company's performance over last 2 years"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Analysis of Cadbury Company's environmental changes in last five years
Also, he added drinking chocolate and cocoa to his list; all the time believing that they may serve as a substitute. He was very particular about maintaining high quality standards for all of his products. His hard work and effort proved to be very successful, as by the year 1842, he was selling 11 kinds of cocoa and 16 kinds of drinking chocolate.
12 pages (3000 words) Assignment
Company's Performance Management System
For making the best decision, it is imperative for the organization to be aware of its goals, visions and mission. These are the long term and short term objectives for an organization. Objectives provide a sense of unity, direction and purpose. Thus, having a strong objective is necessary for the proper functioning of any organization.
8 pages (2000 words) Assignment
Commentaries on a company's performance over last 2 years
This means that the company’s inventory has been higher than the sales in the year 2012-13. This is not favorable position since inventory piling up indicates that money is tied up in inventory. Then, receivable
3 pages (750 words) Assignment
What has happened in a CHOSEN EUROPEAN ECONOMY over the last two years
In order to do so, monetary policies of the central bank and fiscal policies of the government have become important factors. One of the primary tasks of the monetary authority is to control expectations of future inflation. This is
8 pages (2000 words) Assignment
Pfizer Business Trends
The graph then shows that, since then, these companies have been performing by increasing their share values in the New York Stock Exchange until the latest report which is the 2013 fiscal
4 pages (1000 words) Assignment
To develop an understanding of what has happened in Brazil or Canada or China over the last two years
These achievements, however, have come at a cost to the country. Domestic investments by the government and overall expenditure by
4 pages (1000 words) Assignment
Find an article about weather (within the last 2 years 2012-2014) and summary the article
This drift is caused by earth plate movements and the changes in the distribution of Earths mass. The wobble in the Earths axis during rotation is an integration of the Chandler wobble and the annual wobble, linked to Earths orbit around the sun. Climate is inclined
2 pages (500 words) Assignment
Find an article about plate tectonics(within the last 2 years 2012-2014) and summary the article
Mars illustrates to us how the earth might have looked many years back because it is still at its primitive stage in terms of plate tectonic. This might be of great important to help us
2 pages (500 words) Assignment
Conduct research on the economic performance of ONE (1) country over the last ten years, from 2004 to 2013, applying the macroeconomic indicators of real GDP, real GDP growth rate, real GDP per capita , unemployment rate and inflation rate to argue whe
This paper mainly concentrates on the postwar period of economic development (1945-present) of Japan. High levels of growth in the last decade were observed in a number of industrial sectors, that include agriculture, automobile mining, and petroleum exploration. Economic trends in these industries, as well as in labor market are considered.
4 pages (1000 words) Assignment
Critically evaluate the reforms that have taken place in the UK banking sector over the last number of years. Your essay should, as a minimum, cover the following three elements: legislative, policy and institutional
The services provided by the banking sector are supportive in the allocation of capital and production of goods. Each of these services is essential to the well functioning of the economy. These financial services are timeless.
23 pages (5750 words) Assignment
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment