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Finance and Asset Management Report - Essay Example
Finance & Accounting
Pages 9 (2259 words)
Great Portland Estates BRIEF DESCRIPTION OF COMPANY Great Portland Estates is the entity established in UK, which acts under the investment property sector of UK. The company operates as Real Estate Investment Trust (REIT). The company itself has decided to undertake its operations as REIT so that it can avoid federal income taxes subject to the condition that it has to pay more than 90% of its income to its equity holders (Great Portland Estates, 2012)…
2012, 2011 and 2011. This performance evaluation has been conducted by using ratio analysis which has been the most effective performance evaluation tool in terms of past performance trends. The comparison of the financial performance of Great Portland is also made in collaboration with one of the industry competitor named as Songbird over the same financial periods. Following are the five broader areas of ratio analysis namely profitability, liquidity, efficiency, solvency and investment under which the performance evaluation has been conducted (Brigham et al, 2008). Profitability Analysis The profitability picture of Great Portland provides a better view if the past performance is taken into consideration. It can be observed that the net profit margin of Portland has improved massively as it just started some momentum in the year 2010 (Great Portland Estates, 2012). However, in the year 2011, the firm bounced back on significant note and continued its better performance in the year 2012 as well. Very similar trend can also be observed if operating profit margin is taken into consideration, which started peaking in the year 2010. However, operating profit margin for Great Portland has been on an increasing trend. ...
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