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Statistical accounting and finance for managers Accounting and finance for managers Name of the University Name of the student

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ACCOUNTING AND FINANCE FOR MANAGERS 14 ACCOUNTING AND FINANCE FOR MANAGERS ACCOUNTING AND FINANCE FOR MANAGERS Accounting and finance for managers Name of the University Name of the student Authors note Question 1: 2 Requirement a) 2 Requirement b) 12 Requirement c) 12 Question 2: 13 Requirement a) 13 Requirement b) 15 References list and Bibliography: 18 Question 1: Requirement a) The analysis of performance and financial position of all three companies provided is done by using the tool of ratio analysis

Statistical accounting and finance for managers Accounting and finance for managers Name of the University Name of the student

   Added on 2020-03-28

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Running head: ACCOUNTING AND FINANCE FOR MANAGERSAccounting and finance for managersName of the UniversityName of the studentAuthors note
Statistical accounting and finance for managers Accounting and finance for managers Name of the University Name of the student_1
1ACCOUNTING AND FINANCE FOR MANAGERSTable of ContentsQuestion 1:.......................................................................................................................................2Requirement a).................................................................................................................................2Requirement b)..............................................................................................................................12Requirement c)...............................................................................................................................12Question 2:.....................................................................................................................................13Requirement a)...............................................................................................................................13Requirement b)..............................................................................................................................15References list and Bibliography:..................................................................................................18
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2ACCOUNTING AND FINANCE FOR MANAGERSQuestion 1:Requirement a)The analysis of performance and financial position of all three companies provided isdone by using the tool of ratio analysis. Ten financial ratios that are selected for the purpose ofanalysis are return on asset using net income, return on capital employed, cash flow as apercentage of operating income, net asset turnover, interest coverage ratio, current ratio, liquidityratio, gearing ratio, operating revenue per employee and cost of employees. Non-financial ratiosthat will be for the purpose of analysis are staff retention ratios and customer retention ratio(Baber et al. 2013). Three gambling companies from UK gambling industry for identifyingperformance analysis are William hill Plc, Landbrokers coral group Plc and Paddy power Betfairpublic limited company limited Plc. Financial ratios:Profitability ratio:201620152014-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%25.00%30.00%RoAWilliam Hill Plc.Ladbrokers Coral GroupPaddy Power Betfair
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3ACCOUNTING AND FINANCE FOR MANAGERSReturn on asset (ROA) as a percentage of net income for William hill Plc has witnessedsubstantial decline from 8.67 in year 2014 to 6.73 in year 2016 respectively. ROA forLandbrokers coral group Plc in year 2014 stood at 3.52 that declined to 0.45 in year 2015 andratio further declined and became negative -6.02% in year 2016 respectively. Now, looking atfigures of Paddy power, ratio stood at 22.87 in year 2014 as against 26.41 in year 2015. Therewas considerable decline in figure in year 2016 to -0.11. Therefore, one common thing that hasbeen identified for all three companies is declining trend of return on assets. Ratio stood atsignificantly higher value for Paddy power compared to other companies. Average return onassets for Paddy power is 16.39% compared to 7.83% and .68% for William and land broker.Therefore, paddy power is more efficient in generating income from assets. 201620152014-10.00%0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%ROCEWilliam Hill Plc.Ladbrokers Coral GroupPaddy Power BetfairROCE figures as a percentage of net income for William hill declined from 12.69 in year2014 to 10.51 in year 2016. However, ratio increased to 13.41 in year 2015. On other hand,ROCE for Landbrokers coral group Plc declined considerably from 7.39 in year 2014 to 3.79 inyear 2015 and further it became negative and stood at -6.80. ROCE for paddy power wasreported to be at 36.52 in year 2014 that reduced to 54.66 in year 2015 and value became
Statistical accounting and finance for managers Accounting and finance for managers Name of the University Name of the student_4
4ACCOUNTING AND FINANCE FOR MANAGERSnegative -0.02 respectively. It can be seen from above figures that ROCE is highest for Paddypower, however value decreased to negative in year 2016 unlike William hill whose value wasreported at 10.51. Therefore, it can be seen that William hill has highest ROCE as percentage ofnet income in year 2016 compared to other two companies. Now, looking at average value, it canbe seen that paddy perform return on capital employed stood at 35.03% as against William Plcand landbrokers at 12.94%and 0.61%. Therefore, paddy powers have been more efficient ingenerating return on assets compared to other companies. 2016201520140.00%5.00%10.00%15.00%20.00%25.00%Cash Flow/Operating IncomeWilliam Hill Plc.Ladbrokers Coral GroupPaddy Power BetfairCash flow as a percentage of operating revenue for William hill remained more or lesssame for year 2014 and 2015 at 20.12 and 20.76 respectively. However, figure declined to 15.51in year 2016. Ratio for Landbrokers coral group Plc stood at 13.89 in year 20114 that reduced to11.74 in year 2015 and further declined to 6.04. Furthermore, looking at figures of paddy powerwas reported at 21.88 in year 2014 and declined to 18.46 and 16.18 in year 2015 and 2016respectively. It can be seen from comparing above figures for all three companies that decliningtrend was witnessed in flow of cash as a percentage of operating revenue. However, Paddy
Statistical accounting and finance for managers Accounting and finance for managers Name of the University Name of the student_5
5ACCOUNTING AND FINANCE FOR MANAGERSpower is generating higher cash flow compared to William hill and Landbrokers. The averagevalue of cash flow as a percentage of operating revenue for paddy stood at 18.84% as against18.8% and 10.56% for William and landbroker. Operational ratios:12300.511.522.533.54Net Asset TurnoverWilliam Hill Plc.Ladbrokes Coral Group Plc.Paddy Power Betfair Public Limited Company Plc.Net asset turnover for William hill stood at 0.81 that increased to 0.95 in year 2015. Ratiowitnessed an increase in value to 0.80 in year 2016 respectively. Ratio initially increased anddecreased subsequently. Landbrokers coral group Plc recorded net asset turnover of 1.25 in year2014 that increased to 1.36 in year 2015. However, value declined to 0.64 in year 2016respectively. Ratio for Paddy power stood at 2.22 in year 2014 and 3.94 in years 2015respectively. There was fall in ratio to 0.33 in year 2016. Net asset turnover for paddy power wasmore than rest of companies for two years. However, in year 2016, net asset turnover forWilliam Hill was highest compared to other two companies. Average value of net asset turnoverfor paddy power is more compared to other two companies at 2.16. Hence, paddy power is moreefficient.
Statistical accounting and finance for managers Accounting and finance for managers Name of the University Name of the student_6

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