Analysis of Green Core, Hilton Food, and Premier Food Companies

This report provides a detailed analysis of the financial statements of Green Core, Hilton Food, and Premier Food companies. It includes an examination of their profitability ratios, current ratios, and net assets turnover. The report also discusses the various sources of finance, including retained earnings, equity financing, and debt financing.

Accounting and Finance for
Managers

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

INTRODUCTION
The present report carries out discussion and analysis of three companies based on their
financial statements, the three companies are Green- Core group, the Hilton Food group and the
premier food group (Nielsen, 2018). All these companies lies in same economy and are the main
competitors. Initially, ration analysis, aim and objective and development direction are founded.
Second section covers discussion about all multiple methods of lengthier financing.
SECTION A
1a.
About Green Core Plc Company- While increasing the competition within food industry,
companies are more focused towards increasing the ranges of product or offering and influence
them for buying more (Jitmaneeroj, 2017). In context of this the main strategy of company is to
further reinforce to their consumers with forcing income by a shared values and raising supply
chain through their portfolio & perform more for their potential clients. The main four strength
of this company are home cooked meal, honesty, performance of company and the loyalty of
people. All these are the achievement of company. In order to implement any plan, there is
requirement of knowledge and experiences workforce & that effectively have Green Core
corporation. This ultimately support and enhance the shared values and performances of firm.
Overview of Hilton Food Group Plc- This is a well known and have a excellent image at
marketplace along with strong consumers base. It has been found that it is lively and posses high
expectation. Reason behind success of this company is the satisfaction level that received by
consumers & the quality of goods offered by them. This establish competition among
competitors at marketplace and help this company to expand their business at global level. The
main obligation or duty that need to be complete by this company is to assist the corporate
partners for crossing the rivalries. Objective as a corporation need to be strong with effective
coordination. Changes in business function & objective helps employees to gain success with
one job and shared values. Managerial personnels are the pillars of company that it posses for
which corporate background and components need to be different. Principles of company
discussed the manner by which objective or goal could be accomplished. Workforces of firm
depends on general principles and strategies of company that formulated by top management.

Premier Food Plc- Primary purpose of this company is to provides better, delicious,
fresh healthy and tasty food with wide variety so that they will able to influence more consumers
by receiving maximum satisfaction and consuming services according to their needs. This firm
promotes about their big brand for representing why nutrition food is important for good health.
They relies on developing a stunning operational sites (Phan, Baird and Su, 2017). As well offer
common values, objective with collective decision making process. For improving operation
effectively they motivate their workforces so that goal will be accomplished in small span.
1b.
Financial & Non- financial ratio-

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 by using Net income( %)-
Analysis- from above obstinate table, it has been analysed that return on earning of
company Green Core has raised in 2020 as compare to 2019. This implies that there is a
prominent increment in productivity of relevant company and due to this the return on earning

increases. Whereas in case of Hotel Hilton, their success is same in both the years it tends that
they are constant with their productivity. In relevance to this, suggestion for them is to reach
significant equity yields. Further, in case of premier food corporation, they are very poor in term
of productivity, as compare two other firm.
ROCE( %)
Analysis- As per above mentioned table, it has been seen that the profitability ratio offers
by green core corporation in year 2020 is much better then other two firm Hilton and Premier as
it offers 19.12 % and other two offers 9.02 % & 3.37 % respectively with one exception that the
business ration of Hilton was decreased nearly 2.96 % in 2020. efficiency of premier food
corporation is very poor among all these firm and that required increment in capital expenditure.
Net profit margin-
Analysis- The growth of green core business has improved so it can be said that the
effectiveness has significantly increased in 2020 as compare to 2019. where in case of premier
good food corporation, they face adverse effects of receiving higher price as well as the revenue
generation of operation is approximately -5.18 %. this is not the good condition over Hilton
companies' success during these 3 years.
Gross margin-
Interpretation- In context of premier and Green core food corporation, their productivity
thorough out all the three years is same. Similarly, premier enterprise has strong off than other
two companies in similar way (Scase and Goffee, 2017). Apart from this, relation with other two
enterprise in term of performance, the Hilton food has low manufacturing rate and this is due to
enhancement in sales rate & declination is earning.
EBIT-
Interpretation- According to annul report, it has been seen that Hilton food corporation
is effectively able to regain their profits till the ratio related with the constant depreciation &
amortization elaborates their success. In premier food corporation & green core business are able
to gain steady decrement in year 2019 and attain sustainable production in 2020.
Collection period -
Interpretation- in case of premier business, it has been seen that they could possess
capabilities to recover their receivables over other two companies within small time frame in
term of creditors payment period. Though the Hilton company seeks to compensate their debtors

for quite bit long. On top of this, Green core business is able to decreases their turnaround period
in context of trade debts within small times period of 2020 to 2019.
Credit period-
Interpretation- According to above discussed figure, it has been analysed that payment
period for Hilton & Green Core company are same under same situation & time period. That
implies clear legal laws & policies. Part from this, in case of premier food plc take longer time
for meeting their objective or commitments.
Current ratio -
Analysis- As per above illustration, it has been analysed that current ratio need to be
anticipate to be 2 and that is only presumed by only Green Core business company as they
maintained this ration in year 2019 at this level. On the other hand the two two companies were
disinclined to do this because of high current obligations.
Net assets turnover ration-
Analysis – From above mentioned figure it has been analysed that Hilton Food group
business have high and healthier aggregation. This is because it prepares with the aim of
handling the assets with lesser time & cost. Even though the premier nutrition consist low ratio
and this states theta the cash not be circulated by the company.
Shareholder funds per employees-
Interpretation- In relevance to this, the gap analyse in between two companies is higher
likewise Premier Food corporation holds high and good recruiting funds and almost 3 times
higher than other two companies.
Total assess per employee-
Analysis- As well as there is significant gap in between two companies and there are
sufficient staff reserve in premier food corporation and that is about 5 times more than the
majority of two remaining firm.
1c.
From above obstinate information and data about all the three companies, it could be said
that green core business possess best rank over other in terms of productivity and performance.
This is because they are preferably capable to develop more income together with dividends in
effective and optimized way. It implies the tendency of high potential investment.

Investments enrichment tends to a condition where consumers possess potential to ease
something which is connected with the receiving Except chances. Objective of this is to develop
wealth by performing well in order to get benefits of management money. In case of green core
food corporation, they offers significant opportunities to prominent consumers along with
employees so that they will able to manufacture high yield in future.
SECTION B
2a.
From starting of finance, the word intern data over finance are the establishment of
economic system. These tends to borrowing/ lending or capital initially, determined by
enterprises
Retained earning : Inherent financial sources of company can be defined as a deferred
revenue list on financial statements as per sole basis it tends to the final income of company. It
can be said that retained earning is an income that leftover after distribution paid to the
shareholders or stock of shareholders (Kim and Schmidgall, 2019). There are number of
lengthier sources of corporate such as interest income, rentals & obligation apart from lengthier.
In this it is not vital to occur maturity. In relevance to this Earning such as loaned funds are not
specified as a fixed obligation on annual fees or repayments methods.
Equity financing- To generate more money, equity investment tends to marketing of
sample weight. Shareholders who buy stock of company will also get right to vote in decision or
policies of company. Equity capital may includes selling of all fair values, like ordinary shares,
new stock, equity options and so on. With the aim of expansion, a business can face problem
related with the funds & at that situation they have two options either debt or equity. Equity
finance imply selling of leftover values & offer purchaser a shares of business in exchange of
cash. Percentage of business share that is offered in equity depends on ratio that investor spent in
business at fund ending and the valued expenditure. For example if an investor spend $ 700000
initially at beginning of company then they will defiantly received all the remaining stock.
Debt financing: Debt financing occurs when a company gains finances by selling debt
devices to single investors or organisations which provide investment to firms for fixed capital.
The single investors or organisations attain assurance for the payment of interests and principle
on their loan amount. This process includes sale of fixed income commodity such as bills, notes

or bonds. Capital, lending or a assemblage of these two ways is considered for securing finance
through this procedure. Equity is defined as several amount of shares of the organisation and
gives the investors a right on receiving future profit of the firm but does not require full payment.
Such investors and capitalist have high claim on assets of the company more than their
shareholders if the enterprises suffers loses. In addition to this debt financing is also completed
by issuing debt. Several investors are keen on receiving principle and other investors require
returns in the form of interests.
Term loans: This type of loan has a predefined time period for completing the payment
with a fixed or floating rate of interest. Appropriate rate of interest is available for developing
organisation with proper history associated with loans and concrete financial background. In
order to lower the rate of interests as well as total amount of the loan, the lending rate is able to
include single deposit of loan with large sum of money in comparison to sequence of payments
over long time period. The time period of term loan starts form single year and typically reaches
25 years in case of equipment or property. The enterprises receive the required amount of money
and deposit instalments each month. Various financing organisations such as banks have
constructed services for giving term loans with the chief objective of helping such organisations
gain success after getting appropriate investment by this method of financing.
2b.
Retained earning- It has been found that it is the popular methods of lengthier funding
for all the selected companies. This makes easiness for all of these to utilize the leftover income
of corporation, even if it consist number of drawback related with the rights of present
stakeholders or group of persons. Underneath is discussion about how this concept attracts
interest of all parties in context of Green Core business unit:
Stockholders & shareholders: The financial institution trust along with overall equity of
investor may got influenced with the retained earnings. As this tends to dispersed in among all
present mangers of company (De Villiers and Maroun, 2017).
Providers & lenders – Image of company along with creditors would might affected if
allocation of cash flow is not appropriate. This can be seen by realistic situation of company's
shortcomings.
Employees- Utilisation of remaining benefits directly impose impacts on funds of
company that are allocated to all workers. If the wealth of employees get reduced then it directly

affects the performance of workforces & company in order to get financial success. It implies to
increment in size of workforce and opportunity for unemployed individuals.
CONCLUSION
From above mentioned report it has been expressed that the components of corporate
financing plays an important roles in order to maintained and accomplish the organisational goal
with profitability and productivity. Organisation mainly relies to run their operation with the
help of assets & if they do not have sufficient assets & required funds then it impose direct
impact on overall performance. Management team of company will monitor or allocate all
resources in effective manner so that operation will go smoothly and the goal related with
expenditure & profit will retained.

REFERENCE
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accounting–and future perspectives for the accountant. Journal of Accounting &
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Accounting and Finance.
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