Financial Analysis of Green-Core, Hilton Food Group, and Premier Foods

This report provides a detailed analysis of the financial performance of Green-Core, Hilton Food Group, and Premier Foods. It includes ratios such as ROE, ROCE, profit margin, gross margin, EBIT margin, collection period, credit period, current ratio, net assets turnover, and non-financial ratios. The report also discusses internal sources of finance and their importance in business operations.

ACC 3015

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
SECTION B ....................................................................................................................................9
CONCLUSION .............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
In the report three companies have bee taken into consideration that are Green-Core
group, the Premier group and the Hilton food Group. These companies belong to same industry
and are in higher competition with each other. The report is divided in two sections. In first
section, ratio analysis, detailed information about chosen companies are discussed. On another
side, second part consist several methods that are used in lengthier financing.
SECTION A
Green-Core Plc: This company is working in food and beverage segment with an aim to
increase in number of customers in order to get higher competitive advantage. Main strategy of
company is to enhanced supply chain, increase value of their current portfolio by adding more
products in current product mix. Here some strengths of organisation are empower employees,
home cooked meal and constant better performance (Song, 2016). These all variables provide
higher competitive edge to entity by strengthening its market performance.
Hilton Food Group Plc: It is a renowned company that has strong brand image and huge
customer base in market. There are several rivalries of organisation is present at market place
thus managers are required to leverage their existing brand image in order to grab the attention of
customers. Main aim of entity is to create higher balance among different business functions and
enhance engagement of employees in organisational task that will play a major role in
accomplishment of organisational goals and objectives. There are several manages who are
responsible to handle all business functions in an efficient manner in order to attain predefined
goals (Beyer, 2018). It is analysed that principles of entity are unique and depict the way in
which they carry out their market image. Here, staff members of respective organisation work as
per these principles that is essential to maintain effective relationship among work force.
Premier Foods Plc: This company aims to provide delicious, nutritious food to clients in
order to meet with their needs and requirements. Most of the clients of organisations are from
corporates thus they are required to provide better services in order to retain them for longer run.
They provide ready meal, ready to cook foods to cater the needs to different segments. It is
analysed that their products are used by nearly 94 % of households in British. Main aim of
organisation is is to motivate employees and engage them in overall decision-making process.
Here, firm also used effective pricing practices in order to garb the attention of customers

(Tarofi, 2017). For this, they have determined several work principles and act as per that. They
ensure to provide higher contribution from employees by motivating them monetary and non
monetary benefits. It is monitored that from last several years substantial development has
become an essential business principle that is crucial to ensure overall business growth and
success. Company ensures its growth through collaboration and communication with work force
in regular basis. With this, they are able to maintain positive environment at work place and
accomplish predefined goals in stipulated period of time.
1b
Financial and non-financial ratios:
GREENCORE GROUP PLC 28-03-2020 30-03-2019 31-03-2018
ROE using Net income (%) 34.66 4.55 1.72
ROCE using Net income (%) 19.12 4.8 2.58
Profit margin (%) 7.48 0.75 0.53
Gross margin (%) 33.84 30.23 31.12
EBIT margin (%) 6.73 2.04 1.84
Collection period (days) 26 34 30
Credit period (days) 54 50 47
Current ratio (x) 0.69 2.01 0.75
Gearing (%) 156.67 90.47 119.39
Net assets turnover (x) 2.06 1.81 1.49
Non-financial ratios 28-03-2020 30-03-2019 31-03-2018

Shareholders’ funds per employee (th) 26 64 58
Total assets per employee (th) 100 173 167
HILTON FOOD GROUP PLC 28-03-2020 30-03-2019 31-03-2018
ROE using Net income (%) 17.23 17.95 15.2
∟ ROCE using Net income (%) 9.02 11.98 12.43
Profit margin (%) 2.38 2.63 2.52
∟ Gross margin (%) 16.17 12.69 11.93
EBIT margin (%) 3.08 2.8 2.58
Collection period (days) 37 31 30
∟ Credit period (days) 54 50 47
Current ratio (x) 1.05 1.23 1.2
Gearing (%) 175.87 66.57 36.16
Net assets turnover (x) 3.58 5.56 6.53
Non-financial ratios 28-03-2020 30-03-2019 31-03-2018

Shareholders’ funds per employee (th) 38 38 44
Total assets per employee (th) 181 121 116
PREMIER FOODS PLC 28-03-2020 30-03-2019 31-03-2018
ROE using Net income (%) 2.77 -3.51 0.76
ROCE using Net income (%) 3.37 1.16 2.94
Profit margin (%) 6.33 -5.18 2.55
∟ Gross margin (%) 40.94 44.12 40.42
EBIT margin (%) 11.25 0.55 8.48
Collection period (days) 27 29 24
∟ Credit period (days) 65 65 59
Current ratio (x) 0.98 0.78 0.78
Gearing (%) 64.91 105.83 106.9
Net assets turnover (x) 0.32 0.42 0.42
Non-financial ratios 28-03-2020 30-03-2019 31-03-2018

Shareholders’ funds per employee (th) 404 230 234
Total assets per employee (th) 729 533 540
ROE using Net income (%)-
Analysis- According to the aforesaid table, it can be ascertained that in 2019 and 2020,
there has been an improvement in Green core as return on earnings. This implies that there is
major improvement in productiveness of the respective organisation that constructs returns. On
the contrary, the Hilton Business saw stable growth in the year 2019 as well as 2020, conveying
that they found a way to attain given equity output. It can be assessed in the sense of Premium
Food Business that the overall output of Premium Food enterprise will be lower when compared
to other organisations.
ROCE (%)
Analysis- As depicted by aforesaid illustration and charts, it was identified that, the
profitability ratio of Green Core is better in comparison to other organisations, with the value of
19.12 % . The only deviation being reduction in profitability ratio of Hilton Business by 2.96
percent in the time period of 2020. In comparison with other enterprises Premium Business has
lower efficiency which is reflected in the above magnitude, and is credited to escalation of
capital expenditure.
Net profit margin:
Analysis: There has been a improvement in the potency of the Green-Core Business from
the year 2019 to 2020 as the business continues to move forward and develop competencies. In
contrast to increased prices, Premier Food had unfavourable operating revenue of around -5.18

percent. This would be a favourable situation, in spite of ascending growth of Hilton Food
Manufacturer in the time 3 years.
Gross Margin-
Analysis: Green Core Businesses and Premier Fast food chain had equal output during
the time period of respective 3 years. In related way like Premier Food Manufacturer the
organisation is more powerful than other firms. On the contrary output of Hilton food
manufacturer is faint because of decrease in profits and increase in sales rates.
EBIT-
Analyses/interpretation- On annual basis Hilton hotel is able to keep their profit margin
until the amount of constant depreciation and amortization as its show their growth. On the other
hand, premier food corporation & Green central business analysed a exponential declination over
2019 as well as sustainable production in 2020.
Collection period:
Analyses- premier business may be maintained their growth and development in order to
recover the receivables from other two firms within stipulated time period as a creditor payment
period. Even though Hilton food company seeks to reimburse their debtors for a long period.
Apart from this, Green core corporation has been able to reduces the turnaround period of trade
debts within small time in 2020 with respect to 2019.
Credit period:
Analyses- Both Hilton food company and Green key have similar payout period, same
time-frame as well as clearing their legal & policies. In order to meet brief commitments, Hilton
food corporation needs more time.
Current ratio:
Analyses: from above illustration it may be suggested that current ratio generally
anticipated to be 2 and that could be only maintained by Green Core plc like they have sustained
their ratio in year 2019. while other corporations were reluctant to carry out due to high current
obligations.
Net assets turnover ratio
Analysis- It can been illustrated from above map that Hilton Food corporation has a good
combinations as it is formulated for managing their assets in small spam along with cost. Even if

premier nutritions has a low margin and that represents that their cash connect be regulated by
company.
Shareholder fund per employee-
Analysis: There is a large gap among two companies since Premier Food Group had
efficient funds related to recruiting and that is almost 3 times more than the figure of these two
firm.
Total assets per employees: -
Analysis- As well there is substantial gap among two companies and have enough staff
reserves in prime food manufacturer. Also approx five time more than the majority of two
companies.
1 c
This can be claimed, on the basis of above mentioned financial reviews of all 3
companies that the green core-seller knows best ranks with respect to performance. As it created
in order to earn more income and divided in optimised form. In which this sector has high
potential in investment.
Investment enticement is a condition where consumers has potential and ability to
benefits something that has likelihood in order to gain expected for chances. This sector has to
develop wealth by functioning for gaining advantages of and how to mange money. With
reference to Green Core ecosystem, entities offers god investments opportunities to customers as
business produces more yield in upcoming year.
SECTION B
2a.
The term Internal data via finance are generated by the economic systems the very
ongoing presence of finance. These are borrowing / lending or capital primary identified by
business as reverse to financing like loans issued by financial teams as various environment. In
which financial channel of information includes income generation, comprehensives handling of
cash flow funds and investments/ assets disposition (Hong, 2020). In this sense some of internal
organisational lengthier resources are available to business as follow:
Retained earning: According to sole, deferred revenue list on financial is known as
inherent financial sources for companies and that term out as final income of an insinuation's.
Retained earning can be defined as income that left after spacing which have been paid to

shareholders or their stocks. Interest income apart from lengthier rentals & obligations are
lengthier sources of company financing in that no maturity will occurred. Earning such as loaned
funds are not parted by fixed obligations on annual fees or repayment period.
Equity financing- Equity investments are applied to selling weight for gaining more
money. Shares holders who purchase stocks will also gain right in business voting. Selling of
entire values like ordinary shares, new stocks equity options and so on may be linked with equity
capital. In order to expand business, a owner may faces possibility of requirement of funds and
that seeks to adhere in one or two direction i.e. debt & equity (Bahrami Nasab and Sajjadi Nasab,
2020). Equity finance demesne selling the leftover value & offers purchases a share of business
unit with exchange of cash. The % of business in order to offer in equity finance relies on how
far the investors has spent in business at ending of funds and what could be expenditure is
measured. An investor who spends $600,000 for example, initially during opening of company,
it will yet own all leftover stocks.
Debt financing- Debt funds will arise when funds of company will increases by selling
the debt securities to peoples or investments of firm related to cash flow/ capital spending. By
this entities become borrowers by dealing with loan money. With this a guarantees will be
permitted to entities that principles & interest on loan will be give back. It can needs 3 modes in
order to secure funds when a company wishes to funding from capital, borrowing or a
combination of both (Vakhrushina and et.al., 2018). Equity represents a section of shares of
company that it possess. It provides a claim on profit to capitalist and by this it does not have to
be repaid in full. Equity investors are the next in terms of earning the compensation if business
is in loss the other way of debt finance is when a business increase money by debt issues.
Term loan: Mortgage refers to a lender with a specific maturity period as well as for
particular amount or may be a yielding interest extent. In case of small firm with strong financial
report also have a suitable loan rate. Additionally, to lowers the interest sum and overall
mortgage cost will involve a high lump sum of loan rate. In business financing, a revolving loan
within company for machinery will be around 25 years along with property development or
written off of system tools. Former, small firm utilizes money to revolve loan for purchasing
capital assets in order to carry out manufacturing or production operations like machinery or new
homes (McLaney and Atrill, 2016). Any company which borrows money when they needed on

monthly basis for performing. Most of the banks have developed term-loan programs for helping
corporations in effective manner.
2b
Retained earning: The spectacular famous mode of lengthier funding is best and useable
methods for companies. As it makes possible in order to effectively use the left over income of
enterprise even if it holds some uncertainties for obligations of existing stakeholders group's
persons (Loughran and McDonald, 2016). In relevance to this below comprehensive represent a
discussion about how source will attracts the interest of all parties with respect to Green Core
Providers & lenders: The allotment of cash flow would affects the image of company
with addition to creditors as illustrated by shortcoming of company with refers to existing real
situations.
Stockholders & shareholders: Utilisation of retain earning may affects the overall
equity of investors along with financial trust of companies as the retained earning are usually
trends to to spread between existing managers.
Employees: Utilisation of remaining benefit directly affects the funds of company that is
allotted to all workers of company (Kim, Schmidgall and Damitio, 2017). Each individual
worker lowers the wealth and the affects the performance level of workforces in order to gain
financial success. Which leads to increment in size of workers over unemployed
CONCLUSION
From above discussed report it can be concluded that components of corporate finance
plays vital role in any management of enterprises. Companies operates their business with the
assistance of assets and if management do not own or buy funds they will not able to operates
their business smoothly and that ultimately puts impact on market. Mangers of enterprise will
track & monitor the flow of resources therefore, the set of course or action of operations will
effectively pay in term of profit and expenditure of company.

REFERENCE
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Hong, S., 2020. Corporate social responsibility and accounting conservatism. International
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Kim, M., Schmidgall, R. S. and Damitio, J. W., 2017. Key managerial accounting skills for
lodging industry managers: The third phase of a repeated cross-sectional
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Vakhrushina, M. A., and et.al., 2018. Integrated management accounting in the financial
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