Using relevant ratios in support of your answer, analyse the financial efficiency of Shropshire Hills Water plc over the past two years. (10 marks)

Slides:

Advertisements

Similar presentations

Business Performance Analysis (Part 2)

Advertisements

1 Reference: Chapter 1 and 11 （ Book 2 ） Accounting Ratio 17.

Calculations Lindsay Rodrigue Accounting 30 Ms. Lozinski May 29, 2001.

Unit 3 Accounts & Finance Ratio Analysis. Learning Objectives To be able to calculate ratios To be able to use ratios to interpret and analyse financial.

Chapter 4. We will want to answer questions about the firm’s n Liquidity n Efficient use of Assets n Leverage (financing) n Profitability.

Understanding & Managing Finance Seminar 7. Seminar Seven - Activities  Preparation: read Chapter 7 (M & A 2 nd Edition) Exercises:  Ratio Activity.

Managing Finance and Budgets Presentation 7 Financial Ratios.

Finance/Accounting Functional Review. The Finance/Accounting Functions Defined Investment Decision The Allocation and Reallocation of Capital and Resources.

Managing Finance and Budgets Seminar 4. Seminar Four - Activities  Preparation: read Chapter 7 (M & A 2 nd Edition) Or Chapter 6 (M & A 1 st Edition)

Unit 3 Accounts & Finance

LO. Define & provide examples of the 5 main financial ratios.

Special Accounting Procedures

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Question for understanding ratios Using the following information, Calculate the firm’s debtor’s turnover and briefly explain the ratio you have calculated.

FINANCE BASIC FACTS. Sources of funds Internal Retained profits Sale of assets Using trade credit Investing surplus cash Reducing inventory External Personal.

Unit 5 An introduction to accounting

INTERPRETING FINANCIAL STATEMENTS

TOYOTA MOTOR CORPORATION (TMC)

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall 14-1.

Course Setting up Financial Ratios. What are Financial Ratios? A financial ratio is a relative magnitude of two selected numerical values taken.

FINANCIAL STATEMENTS A2 Business Studies. Aims and Objectives Aim  To understand liquidity ratios and introduce profitability ratios. Objectives  All.

Why Financials Matter Balance Sheet – Income Statement.

Module Accounting & Finance Topic Ratio Analysis.

HIGHER LEVEL ASSESSING A BUSINESS. Overview Who is interested in the accounts of a business? Profitability ratios Liquidity ratios Activity ratios Dividend.

© Pearson Education 2002 Financial ratio classification Categories Profitability Efficiency Liquidity Gearing Investment.

3.6 Ratio Analysis Chapter 23 – Part 2.

Analyzing Financial Statements Chapter 14 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Analyzing Financial Statements Chapter 23.

Financial Statement Analysis. RATIO ANALYSIS Financial statements report both on a firm’s position at a point in time and on its operations over some.

Using Financial Ratios A2 Business Studies. Aims and Objectives Aim:  To understand how to use financial ratios. Objectives:  Explain the uses of financial.

Learning area 9 Chapter 12 Lecture 3(b). 8 Liquidity ratios page 38 …NB Measure if a company can pay its short-term debts when they become due 8.1 Current.

6.1 Van Horne and Wachowicz, Fundamentals of Financial Management, 13th edition. © Pearson Education Limited Created by Gregory Kuhlemeyer. Chapter.

Ratio Analysis.

Financial Ratios Report Financial Report Results For all Divisions.

Financial Statement Analysis Chapter 9

Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning.

Accounting: What the Numbers Mean Study Outline and Overhead Master Chapter 11.

Interpreting financial ratios

Financial Statement Analysis

Ratio Analysis – Uses and Limitations

GCSE Business Studies Unit 2 Developing a Business

HOMEWORK FINANCIAL REPORT.

Analysis Example Financial Ratio

Unit 2 Financial & Management Accounting

Ratio Analysis Past Questions

To what extent has Shropshire Hills Water plc benefited from increasing the scale of its operations? (18 marks)

John J. Wild Sixth Edition

Efficiency Ratio Analysis HL

Ratios and proportions

Chapter 10 Introduction to Ratio Analysis

© 2015 Cengage Learning. All Rights Reserved.

Financial ratio classification

ACC 545 Competitive Success-- snaptutorial.com

ACC 545 Education for Service-- snaptutorial.com

ACC 545 Education for Service/tutorialrank.com

ACC 545 Education for Service-- tutorialrank.com

ACC 545 Teaching Effectively-- snaptutorial.com

Analysis of Financial Statements

RATIO ANALYSIS Dr.S.Kishore Assistant Professor Dept of MBA

Financial Analysis Quick ratio: ($22,000+ $41,500)/

ANALYSIS OF FINANCIAL STATEMENT

Interpreting Financial Statements

Corporate Finance, Concise

RATIO ANALYSIS.

Return on invested capital and profitability analysis

Analyzing Financial Statements

Ratio Analysis - Overview

Chapter 28 Financial Analysis Principles of Corporate Finance

Financial Statements: Basic Concepts and Comprehensive Analysis

Interpreting Accounts

Presentation transcript:

Using relevant ratios in support of your answer, analyse the financial efficiency of Shropshire Hills Water plc over the past two years. (10 marks)

Relevant ratios should include: • Asset turnover • Inventory or stock turnover • Payables or creditor days • Receivables or debtor days.

http://web. aqa. org. uk/qual/gce/business/business_materials. php http://web.aqa.org.uk/qual/gce/business/business_materials.php?id=05&prev=05

Coffee Delight: Analyse whether or not the Finance Director is correct to say that both expansion projects meet the company’s financial objective of a 10% annual average return, but that the Romanian project looked more attractive? You should support your answer with relevant calculations. (10 marks)

Answer: Romania: Total profits (millions) = (1.85 + 3.08 + 5.12 + 7.99) – 10.6 = 18.04 – 10.6 7.44/4 = 1.86/10.6 x 100 = 17.55% UK: Total profits (millions) = (2.0 + 3.10 + 3.31 + 3.45) – 8.1 = 11.86 – 8.1 3.67/4 = 0.94/8.1 x 100 = 11.60%