logo

Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies wit

18 Pages3743 Words70 Views
   

Added on  2020-07-23

About This Document

ACCOUNTNG AND FINANCE FOR MANAGERS TABLE OF CONTENTS INTRODUCTION 1 SECTION A 1 Financial and non-financial analysis 1 FINANCIAL RATIOS 1 Gross profit ratio 1 Operating margin ratio 2 Net profit ratio 3 ROE 3 Assets turnover ratio 4 Interest coverage ratio 4 Current ratio 5 Collection period 5 Credit days 6 Gearing ratio 7 NON-FINANCIAL RATIOS 7 Identifying best performing companies with reasons 8 Identifying poor performing company with recommendations 8 SECTION B 9 A. Identifying and explaining main

Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies wit

   Added on 2020-07-23

ShareRelated Documents
ACCOUNTNG AND FINANCE FORMANAGERS
Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies wit_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1SECTION A.....................................................................................................................................1Financial and non-financial analysis............................................................................................1FINANCIAL RATIOS....................................................................................................................1Gross profit ratio......................................................................................................................1Operating margin ratio.............................................................................................................2Net profit ratio..........................................................................................................................3ROE..........................................................................................................................................3Assets turnover ratio.................................................................................................................4Interest coverage ratio..............................................................................................................4Current ratio.............................................................................................................................5Collection period......................................................................................................................5Credit days................................................................................................................................6Gearing ratio.............................................................................................................................7NON-FINANCIAL RATIOS..........................................................................................................7Identifying best performing companies with reasons..................................................................8Identifying poor performing company with recommendations...................................................8SECTION B.....................................................................................................................................9A. Identifying the key stages in capital investment decision-making process.............................9B. Identifying and explaining main methods of investment appraisal with examples..............11CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15INDEX OF TABLESTable 1 Calculation of payback period..........................................................................................11Table 2 Calculation of Accounting Rate of Return.......................................................................12Table 3 Calculation of Net Present Value.....................................................................................13Table 4 Calculation of Internal Rate of return...............................................................................14
Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies wit_2
INTRODUCTIONManaging accounting and finance related functions in current volatile market is atoughest tasks. Successful and strong financial plans and decisions can bring growth whereaspoor quality decisions may threaten the business sustainability. Financial Managers of thecompanies are accountable to make the best financial plan to satisfy their own monetaryrequirement, assure its optimum utilization and put better control and monitoring over the usageso as to avoid the possibility of money shortfall. UK Gambling industry has undergone with astrong growth period, UK Gambling Commission reported that online market expanded to £4.7billion. The aim of the current assignment is to critically examine the financial performance ofthree companies listed on LSE and works in UK Gambling market. It will be assessed viafinancial ratio analysis including profitability, solvency, liquidity and efficiency. In the later part,the report discusses the key stages in capital budgeting decisions and various methods ofinvestment appraisal will be examined with numerical examples to illustrate the key aspects andtaking viable investment decisions. SECTION AFinancial and non-financial analysis FINANCIAL RATIOSGross profit ratio2016201520140.0020.0040.0060.0080.00100.00120.00Gross margin William Hill LadbrokesPaddy Power1
Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies wit_3
William Hill’s gross profit shows falling trend from 88.57% to 85.27% & 81.74%. It islower than Ladbrokes gross margin of 85.40% but relatively greater than that of Paddy Power’sratio of 76.91%. The ratio clearly shows that Ladbrokes earned a greater return through mark-upon product and service cost. Merger with Coral had really proved trading momentum as itbrought many opportunities and enable business to become the leading betting and gamingbusiness. Business had delivered excellent performance with huge increase in revenues bycompletion of Coral merger. Proforma Basis reported 12% increase in football stakes as a resultof Euros and Self Service Betting Terminal Rollout helped to offset declining popularity ofgreyhound and horse racing. In Italy, it had performed extremely well as its Eurobet revenuegoes up by 12%. Operating margin ratio201620152014-5.000.005.0010.0015.0020.00Operating margn William Hill LadbrokesPaddy PowerAlthough Ladbrokes reported highest increase in revenue in 2016, still, WilliamHill’srevenue is comparatively greater. Moreover, due to high operational cost Ladbrokes had incurredloss of 0.50%. However, William Hill’s gained OM of 13.72% greater than Paddy Power of0.88%. William Hill had continued their core focus on the online market. It had progressedthrough its omni-channel plans, more importantly extensive online expansion. Company hadbuild its strong presence in digitalization as well as physical footprint in Australia. Every week,there is about 2.8 million people engaged in gambling which is 10% above the two years agomainly driven by mobile technology. Due to transformation programme that is expects to drive2
Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies with reasons 8 Identifying best performing companies wit_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting & FINANCE FOR MANAGERS
|18
|2859
|71

Accounting and Finance for Managers : Report
|17
|3300
|106

Accounting and Finance for Managers EXECUTIVE SUMMARY
|22
|4906
|242

Business Performance Analyis Report of Tusker Plc
|17
|4620
|176

Assignment on Accounting and finance - Next Plc And Hennes & Mauritz Company
|16
|3659
|165

Accounting and Finance Assignment : Next PLC
|13
|3607
|773