Compass financial analysis and sources of finance used by the company

Compass financial analysis and sources of finance used by the company Essay example
Masters
Essay
Marketing
Pages 4 (1004 words)
Download 0
Compass Financial Analysis and Sources of Finance Used by the Company By Student’s Name Code + Course Name Professor’s Name University Name City, State Date Introduction The financial performance of the Compass Group Plc (UK) can be analysed by using financial/accounting ratios, as explored under the following paragraphs…

Introduction

Gross Profit Ratio It is calculated by the following formula. Gross profit ratio = [(Gross profit / Net sales) ? 100] The results are presented in Table 1. Table 1: Gross profit ratio of the Compass Group Plc Company ? million 2011 2010 Gross Profit 1,010 983 Net Sales 15,833 14,468 Gross profit ratio 6.38% 6.79% There is a decrease in the gross profit ratio that has been realized amounting from 6.79% in 2010 to 6.38% in 2011. This can be attributed to poor sales strategies and an increase in the cost of goods sold (Compass Group Plc 2011, p.63). Mark Up It is calculated as shown below. Mark up = (Sale price / Cost) – 1 The results are shown in Table 2. Table 2: Mark up of Compass Group Plc ? million 2011 2010 Sales price 15,833 14,468 Cost 14,823 13,485 Mark up 6.81% 7.29% The mark-up decreased slightly from 7.29% in 2010 to 6.81% in 2011 (Compass Group Plc 2011, p.63). This can be contributed to low sales turnover, coupled with an increase in the costs of sales. Net Profit Ratio It is calculated by means of the following formula: Net Profit Ratio = (Net profit / Net sales) ? 100. The results are shown in Table 3. ...
Download paper
Not exactly what you need?

Related papers

EMAAR PJSC Financial Company Analysis
It was ranked 462nd in the 11th Financial Times Global 500 and was assigned A- and A3 ratings by Standard & Poor and Moody’s Investor services. The company scale of operations is spread internationally in 17 countries namely Syria, Jordan, India, Pakistan, China, US, Canada, UK. The company currently has a market capitalization of AED 15.3 B with 6.1 B shares outstanding. The group is basically…
Coca-Cola Company,financial analysis from most recent annual report/contrast american coke and mexican coke
?……………………………………………………………………………………7 Financial Statement Analysis: Coca Cola America…………………………………………………………………………….8 Relevant Ratios from Financial Analysis, Trends…………………………………………………………………………….10 Current Financial Climate…
Company Analysis
The subsidiaries of the company provide life insurances, annuity and other products related to health insurance. The independent agents and the direct advertisements to the customers are used to distribute the products of the organization. The company acquired the Lincoln Income Life Insurance Company in the year 1986. The company purchased the GreenTree Financial in 1998 which was the largest…
Quantitative Finance Analysis
It is important to note that the influence of using highly specialized quantitative techniques is on an increasing trend mainly due to its ability to provide inferential statistics. The results are inferred in a highly précised and accurate manner, which lead the quantitative analysts to sort out the different aspects attached with the behavior of a financial decision. This report highlights…
Company Analysis of the Financial Performance of White bread Plc
These businesses are conducted under the name of several well-known brands like the Premier Inn, the Beefeater Grill, the Brewers Fayre, Table Table, Taybarns and Costa Coffee. The company provides employment to around 40,000 people all over the world. The organization in based in the United Kingdom and constitutes one of the major hospitality brands of the region. It serves over 11 million…
Sources of finance available to a business
The main finding was that, when starting a business the initial response was positive but private investors, and venture capital companies, needed to see extra experienced management in the company, thus not willing to help. However, when a business has established itself and had a recommendable repute they would be helpful. Table of contents Abstract Introduction Background Literature review…
Case Study- Company Situation (Financial Analysis & SWOT Analysis only)
Based on the rising revenues and margin data, it is possible to conclude that Inditex is at the growth phase of the life cycle, while Benetton, the GAP, and H&M are at maturity and stability phase, as their revenues and margins are declining. Financial Ratio Analysis - Inditex Profitability Gross profit margin of the company is fairly high – 59%, which implies that the company has effective…