Posted: September 13th, 2017
Assignment Requirements
Answer all questions using the doucments will be uploaded with the questions and the information ofGreencore GroupPlc, which has to be used to answerthe 6 question. Work will be marked on the basis of a) the accuracy of your calculations, b) the quality of the analysis provided and, c) the presentation of your report, which must be prepared in a professional manner.
Question 1:
What is (are) the principal activity(ies) of this business?
2 marks
Question 2:
Comment on the outcome of the auditor’s report for Greencore Group Plc. Briefly discuss the importance the auditor’s report with respect to financial information.
4 marks
Question 3:
Compute the following ratios, using the table provided below as a template:
32 marks
Profitability
a) Return on equity (ROE)
b) Gross profit margin
c) Net profit margin
Liquidity
d) Current ratio
Asset Management
e) Inventory (stock)turnover period
f) Trade payables’(creditors’)turnover period
Other
g) Gearing ratio
h) Price earnings ratio
Ratio | Expression | 2013 | 2012 | 2013
result |
2012
Result |
Industry
Average |
Eg Trade receivables period[1] | 39 days | 26 days | – | |||
ROE
|
| | | | | 19% |
Gross profit margin
|
| | | | | 10% |
Net profit margin
|
| | | | | 3% |
Current ratio
|
| | | | | 1.70 |
Inventory turnover period
|
| | | | 50 days | |
Payables’ turnover period
|
| | | | | 20 days |
Gearing ratio
|
| | | | | 4% |
P/E ratio
|
| | | | | 9.0 x |
Question 4
Calculate the yearly percentage change in the following items stating, in each case, whether the change is a rise or fall:
12 Marks
a) Sales
b) Operating Profit
c) Share Price
Question 5
Comment and reflect upon the ratios and percentage changes in items computed in your answers to questions 3 and 4.
30 marks
Question 6
Using the DuPont analysis technique,evaluate and comment on any changes in profitability (ROE) from 2012 to 2013. In particular, use the DuPont method to assess which aspects of the company’s performance have played a key role on the change in its profitability (if any).
[1] The figures used in calculating the trade receivables period ratio are provided as an example and do not reflect items on Greencore Group’s annual reports.
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