In addition to these, Morrison is also involved in managing local authority and associate body’s capital spending programmes such as kitchen and bathroom replacement. Auditor’s report: To Auditor’s report are given by a group of auditors who are independent and possess authority to examine the company’s assets and earnings in which ever manner possible. Auditors report presents an opinion about the financial statements encompassing statement of comprehensive income, cash flows, change in equity and notes to financial statement by following the standardized procedures put forward in Companies Act 2006 as well as International Standards on Auditing (UK and Ireland). They would certify that the financial statements are made in accordance with the standards and regulation or not. This report is an important statement for investors looking to put private equity in the business. An investor conceives this report as a way to increase credibility of the figures presented. The investors can be a shareholder, lender, prospective investor or the employees of the company. This report will provide the building block of faith needed to pursue the transaction. Financial Ratios: Ratio Expression 2011 2010 2011 result 2010 Result Industry Average Eg Trade receivables period1 39 days 26 days - ROE 12.08% 10.17% 19% Gross profit margin 6.89% 6.28% 10% Net profit margin 3.88% 3.16% 3% Current ratio 0.5 0.52 1.70 Inventory turnover period 14.67days 13.24days 50 days Payables’ turnover period 34.34 38.41 20 days Gearing ratio 77% 82% 4% P/E ratio 1190.8 1156 Percentage Change in the following: a) Sales b) Operating Profit c) Share Price 2011 2010 % inc/dec. Sales 15410 14528 6.7% Operating Profit 808 686 17.7% Share price 297.7 266.1 11.9% Ratio Analysis Profitability: The company has performed well over the last year with soaring profits in comparison to year 2010. The company reported an increase in the Gross profit as well as the net profit margin. The gross profit margin increased to 6.89% in 2011 in comparison to 6.28% in 2010. Moreover, the net profit margin boosted from 3.16% in 2010 to 3.88% in 2011. ROE increased to 12.88% in 2011 to give satisfaction to the shareholders. Liquidity: In terms of liquidity, the company has fallen below the level prevalent in 2010. The current ratio has dropped to 0.5 in 2011 as compared to 0.52 in 2010. The liabilities maturity within one year has increased higher in proportion to the liquid asset owned by the company. This has created a mismatch which eventually resulted in plummeting ratios. Asset Management: Asset Management has mixed reviews. A businessman’s prime goal in to reduce the time it takes to get a cash inflow and increase the time of outflows. The company has done that successfully over the last two years. The Inventory turnover period has been impressive in relation to the industry. However, in 2011 the days to hold inventory increased to 14.67days from 13.2 days in 2010. The company leads to industry in terms of this ratio. This shows highly efficient management of the resources on hand and excess inventory management system. On the other hand, the suppliers have had a hard time with Morrison. The payable turnover in days has decreased from38.41 days in 2010 to 34.34 days in 2011. This is a sign of contentment for a supplier as the credit period has decreased. The company should take care of the suppliers and work efficiently to reduce the gap. Others: The company weighs highly on debt therefore; it is
Principal activity Morrison is one of the popular social housing revamp providers in the United Kingdom. The principal activity is to deliver outsourced property maintenance or repair. Moreover, capital investment services to housing association and local bodies are also provided…
A contextualised analysis of Morrison (WM) Supermarkets PLC Overview of the Company
The food retailing market in the United Kingdom is very competitive (Competition Commission, 2000). Food retailers have expanded their business activities in many ways. The total grocery market has grown from £93.3 billion in 1998 to £146.3 billion in 2008.
e of advanced and modern tools of IT. The reasons for the use of IT in the retail companies majorly comprises of aggregating and analysing the customer data for the enhancement of differentiation as well as to increase the ability of the companies so that it can respond rapidly with the changing market place environment through improved flexibility and speed.
Accounting and Finance Financial analysis of Morrison’s and comparison with Tesco Introduction One of the most famous ways to analyze the performance of an organization is to analyze its financial statements and calculate various financial ratios. The ratios can be analyzed over a period of time and compared to other companies in the same industry.
The retail store also provides online services through its subsidiary Tesco.com (Data Monitor, 2004). It is the largest in the UK and operates under four banners: Extra, superstore, Metro and Express. The retail store began as a food store but has since diversified into other areas as clothing and non-food products.
Company Analysis of the Financial Performance of White bread Plc Whitbread Plc is one of the premier organizations engaged in the hospitality business across the world. The company owns a number of businesses such as hotels, restaurants, coffee shops, bars, pubs and so on.
It has set its head quarters in Reading after the company came in the picture in 1996. The company currently operates in the 25 nations across the globe. The major business includes Liquefied Natural Gas (LNG). The company is the leading LNG supplier in the United States.
Tesco is well known of being the most successful operator in retail groceries and merchandise in the UK. It is rated as the third largest retailer in the world. Tesco also owns fourteen stores with a wide variety. The main reason for the success of Tesco is the various products they deal in, popular products and the brand preferences.
This report shall carry out a financial analysis and equity valuation of Burberry Group Plc using information from its financial statements for the four-year period ended on 31st March 2012. The researcher analyzes the importance of income statement vis-à-vis that of the balance sheet as the primary financial statement from the perspective of an equity investor.
The concept of globalization rested on the unprecedented advances registered in the fields of communication and information technologies which immensely helped shrink the world into a compact global market place. With these advances the information is available on momentous scale on the World Wide Web.
l position primarily rely on financial ratios of which the most critical ratios that give a best opinion on the company’s financial health include liquidity ratios and profitability ratios as well as performance at the stock exchange. Therefore, the decision as to whether to
1 pages (250 words)Coursework
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
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Coursework on topic Company Analysis: Wm Morrison Supermarkets Plc for FREE!