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Ratio Analysis - Coursework Example

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Ratio Analysis

The key conclusions shown in this report are that, Tasso plc is very strong financially and that it is growing steadily in the market position this has been possible because of the huge fixed asset in property. Another reason is due to their dismissive approach towards law and regulations. This approach has resulted in an exceptionally good financial performance and efficiencies. Based on the available financial data of Tasso plc all the financial indicators are excellent with the exception of the liquidity. INTRODUCTION The most important thing in management is to find, evolve and assess involvement into possibilities that may be out there to develop and improve the company’s financial position. In so doing, the management can be able to assess various investment opportunities considering the risk that may be involved and assess the liquidity of the company. It is possible to determine the financial health of a company; this can be done by calculating the company’s financial ratios. Financial ratios are best used as a diagnostic tool to find resources of a financial trouble company. Financial ratios provide a fast and somehow straightforward approach to investigate the financial viability of a company. A ratio easily concerns one number seeming in the economic declarations to some other number seeming in the economic declaration ratios can split up in distinct assembly and each assembly can, at identical time, be sub-divided. In this paper, I will concentrate on liquidity, solvency, Working capital management, profitability and asset efficient ratios, with this, people will be able to understand Tasso plc. Financial position and be able to appraise it. TASSO PLC. Financial STATEMENTS AS OF THE YEAR 2009 AND 2010 2010 2009 REVENUE Cost of Sales 56910 53898 GROSS PROFIT 4607 4185 Administration Expenses 420 216 Research and Development 0 0 Depreciation 1107 1036 Operating Profit 3080 2933 Financial Income -314 -362 Profit from Sale of Assets 377 236 Others 33 110 PROFIT BEFORE TAXATION 3176 2917 Taxation 840 779 PROFIT FOR THE YEAR 2336 2138 Earnings per Share 29.33 27.14 Dividends per Share 13.05 11.96 Dividend cover 2.36 2.27 Other income/ loss -87 -355 Comprehensive Income 2249 1783 In the table above is the income statement of Tasso plc ,it’s a summary of the accounts between the year 2009 and 2010. 2010 2009 NON CURRENT ASSETS (million) (million) Property plant and equipment 24203 23152 Goodwill and Intangibles 4177 4076 Long term investments 2746 1860 Others 3132 2997 Total Non Current Assets 34258 32085 CURRENT ASSETS Cash and Cash equivalent 2819 3509 Inventory 2729 2669 Receivables 1888 1820 Others 4329 5481 Total Current Assets 11765 13479 CURRENT LIABILITIES Accounts payable 9442 8665 Short term debt 1672 3996 Others 4898 4934 Total Current liabilities 16015 17595 NON CURRENT LIABILITIES Long term Debt 12520 12693 Deferred income tax 795 676 Minority interest 0 0 Others 2012 1694 Total non Current Liabilities 15327 15063 BOOK VALUE 14681 12906 SHAREHOLDERS FUND Common stock 399 395 Preferred stock 0 0 Other paid in Capital 4801 4638 Treasury Stock 0 0 Reseves 40 40 Retained income 9356 7776 Minority interest 85 57 Total shareholders Income 14681 12906 2010 2009 (millions) (millions) Net cash From Operating Activities 4745 3960 INVESTING ACTIVITIES Capital Expenditure 2855 4487 Acquisitions 65 1275 Other investing Activities 1043 -212 Total cash from investing activities -1877 -5975 FINANCING ACTIVITIES Cash ...Show more

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Title: Ratio Analysis Name: Institution: Professor: Course: Date: Ratio Analysis EXECUTIVE SUMMARY The purpose of preparing this report is to provide a financial appraisal of Tasso plc. By that, the shareholders and the stakeholders can know the financial position of the company…
Author : wendy34
Ratio Analysis essay example
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