StudentShare solutions
Triangle menu

Finish three finance questions - Essay Example

Not dowloaded yet

Extract of sample
Finish three finance questions

The recessionary woes prevalent in the country have adversely affected the business of company. As the recession has taken a strong hit on the manufacturing organizations, so has service sector been affected by it. Although revenue has declined by a meager percentage, the profitability of the company has been slashed down by 73.5% during the same year. The operating expenses have themselves decreased by 2.6% on account of declining revenues and a better allocation of resources by management during the period. Exceptional items occurrence in the operating expenses section have trimmed the profitability. They have increased from a tiny ?4.7 Million in 2008 to ?37.4 Million in 2009 which represents an increase of 687% over the period. Finance costs have also painted a dim picture of profitability increasing by 10.28% during the period from CY08 to CY09. The financial burden was magnified because of an increase in exceptional items occurring in the financial charges table which increase from ?4.2 Million to ?11.9 Million. Income taxes paid during the year decreased by 65.3% with the credit going to the inverse effect of exception items on the taxable income. In a nutshell, if we exclude the effects of exceptional items, the profitability has only shrunk by 20%. ...
High gross margins of the company depict that the company is operating in service industry. Operating margins have decreased from a hefty 23.6% in CY08 to 17.6% in CY09. Increase in operating expenses has caused the company to bear the brunt of falling profitability. Operating expenses have increased by 8.38% during the calendar year. Incorporating the effect of exceptional items show that operating margins have only declined from 24.3% in CY08 to 22.8% in CY09. The explanation can be attributed to the ground that the company has incurred ?37 million additional in exceptional items under the operating expenses table. Hence, we expect that the future of the company will remain upbeat as these exceptional items will have a limited affect on future operations. Net Profit Margin of Marston group has squeezed from 9.3% in CY08 to 2.5% in CY09. Again, exceptional items are the main culprit to such a large decline in margins. Financial costs have jumped up by 10.3% during the period on account of increasing exceptional items incurred within the financial charges category. Efficiency Analysis Asset turnover ratio decreased from 0.27 in CY08 to 0.265 in CY09. This implies that the company is generating ?0.265 in revenues for every ?1 in its assets. This decline is a result of squeezing out of revenues in FY09, although the impact has also been mitigated by a slight decrease in assets from ?2465.9 to ?2431.3 in CY09. Trade receivables day outstanding has increased from 41 days in CY08 to 45 days in CY09 which implies that receivables are being collected in a higher number of days in the previous year, thus marking a negative sign on efficiency of the company. As the organization is not a manufacturing concern, ...Show more


Financial Analysis of the Marston’s Group Marston Group is a privately owned specialist firm operating in United Kingdom aiming to provide its services in the field of civil and high court enforcement. It’s an agency that provides an ethical and professional approach to clients seeking recovery solutions; from amicable recovery to enforcement…
Author : loratowne
Finish three finance questions essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finish three finance questions"
with a personal 20% discount.
Grab the best paper

Related Essays

Corporate Finance Assignment ( Questions )
Do you think agency problems are likely to be more or less severe in Germany and Japan than in United States?? Agency problem is less severe in Germany and Japan and the reason for the same is the insider ownership transaction that takes place in US corporations.
6 pages (1500 words) Essay
Three short essay questions
It is a form of government that is more pluralistic than totalitarian, more capitalistic than socialistic and more democratic than authoritarian. There are different forms of liberal democracy. It can take the limited form or the welfare form. The limited state is where the government advocates for the protection of the citizens, organizing the military in times of war, ensuring that the judicial system is running smoothly and ascertaining order through the police force.
3 pages (750 words) Essay
Three questions
Managerial communication is concerned with addressing issues that are related to effective communication in an organization. In nursing, managerial communication deals with finding solutions that face nurses when carrying out their duties in the workplace.
3 pages (750 words) Essay
Three Questions Essay
I strongly believe and support the Porter’s Diamond model as opposed to Mann’s SPT model because it aims at explaining the competitive advantage; that some countries or organizations have as a result of certain factors that are within their reach, discussed in the subsequent sections that follow.
3 pages (750 words) Essay
Finance final examination questions
Fixed costs are those expenditures which remains constant over a certain level of activity. For example rent for a factory. Variable cost on the other hand varies in accordance to changes in the level of activity. A common example is labor. However, as time goes by and the organisation develops, it is common for them to practice automation, which is "the substitution of automatic methods for human labor."1 This leads to redundancy as human output is replaced by machinery.
5 pages (1250 words) Essay
Finance Questions
b) A CD of a South American bank paying in local currency bears a number of risks. Country risk, exchange rate risk, default risk of this particular bank should be embedded in my estimation of discount rate for this security. It will certainly be above 10%.
2 pages (500 words) Essay
Corporate Finance (see questions)
a company director is assumed to have an effect on the company’s share price, in that favourable information will make share prices of a corporation to move up while an unfavorable information will cause the reverse. The answer to the question is closely related and
12 pages (3000 words) Essay
Week three discussion questions
This can be on a multi year basis or even on a year to year basis. The main value of using the horizontal analysis is it provides a clear trend of
2 pages (500 words) Essay
Choose one of 5 questions and finish the essay
The paper tries to analyze the effects of industrial production on people and things. Industrial technology has altered the social and economic
5 pages (1250 words) Essay
Answering three questions
As St Thomas Aquinas asserted, law deficient of moral content is “pervasive”. Natural law is founded on the tenet that despite the fact that nature contains man, he also has his own nature, which is to
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation