AssignmentExample_1_Ratios.pdf - Performance and Financial Position Analysis Table of contents 1 Introduction 3 2 Analysis of key performance indicators

AssignmentExample_1_Ratios.pdf - Performance and Financial...

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Performance and Financial Position Analysis ,
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Table of contents 1. Introduction ...................................................................................................................... 3 2. Analysis of key performance indicators ........................................................................... 4 2.1 Profitability analysis ................................................................................................ 4 2.2 Liquidity analysis .................................................................................................... 10 2.3 Efficiency analysis .................................................................................................. 13 2.4. Gearing analysis .................................................................................................... 15 2.5. Interrelationship of ratios ..................................................................................... 20 3. Limitations of ratio analysis ..................................................................................... 21 4. Conclusions .............................................................................................................. 23 5. References ...................................................................................................................... 24 Appendix A: Formula collection for ratio analysis ......................................................... 0 Appendix B: Calculations .............................................................................................. 1 Appendix C: Marshalls’ consolidated balance sheets 2010 to 2007 ............................. 3 Appendix D: Marshalls’ consolidated income statements 2010 to 2007 ...................... 5 1
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List of Tables and Figures Figure 2.1: Marshalls’ profitability ratios between 2007 and 2010 .................................. 4 Figure 2.2: Reconciliation between Marshalls’ 2007 and 2009 revenues ......................... 5 Figure 2.3: Reconciliation between Marshalls’ 2009 and 2010 revenues ......................... 6 Table 2.4: Movements in revenue by market segment, from 2007 to 2009 .................... 7 Table 2.5: Movement in revenue, by market segment, from 2009 to 2010 ..................... 7 Figure 2.6: Marshalls’ profit percentage ratios (2 007-2009) ........................................... 8 Figure 2.7: Marshalls ROCE, ROE, and ROA ratios (2007 2009) ..................................... 9 Table 2.8: Marshalls’ liquidity ratios between 2007 and 2010 ....................................... 10 Table 2.9: Major components of current assets and current liabilities .......................... 11 Figure 2.10: Marshalls’ inventories and receivables between 2007 and 2010 ............... 12 Figure 2.11: Marshalls’ efficiency ratios between 2007 and 2010 .................................. 14 Figure 2.12: Marshalls’ capital structure and gearing between 2007 and 2010 ............. 16 Table 2.13: Marshalls’ decomposition of long - term borrowing ..................................... 17 Figure 2. 14: Marshalls’ operating lease between 2007 and 2010 .................................. 17 Figure 2.15: Marshalls’ operating Income, interest expense, and interest cover between 2007 and 2010 ................................................................................................................. 18 Table 2.16: Marshalls’ interest expense between 2007 and 2010 .................................. 19 Table 2.17: Marshalls’ decomposition of financial expenses .......................................... 19 Figure 2.18: Interrelated ratios ........................................................................................ 20 Table 2.19: Marshalls’ decomposition of return on equity ............................................. 20 2
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