Financial Analysis of a Company

The assignment presents a comprehensive financial analysis of a company based on provided data for the year 2012. It involves calculating various financial ratios such as Assets Turnover Ratio, Debtor’s turnover ratio, Creditors Turnover ratio, Capital Gearing ratio, Interest coverage ratio, Gross profit ratio, Return on Capital employed, Net profit ratio, Return on Assets, EPS, Dividend payout ratio, Dividend yield ratio, Price earnings ratio, Return on Equity, and Dividends coverage ratio. The analysis aims to evaluate the company's financial health and performance across different aspects.

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ASSIGNMENT TITLE: FINANCIAL STTAEEMT ANALYSIS

Table of content
Introduction......................................................................................................................................3
Part A...............................................................................................................................................4
1) Overview of Barclays PLC and the reason for selecting the company.......................................4
2) Identification of different key announcements............................................................................5
3) Identification of key financial trends of the company with internal and external environmental
factors..............................................................................................................................................5
Part B Computation of financial health of the company.................................................................8
1) Evaluation of liquidity ratios.....................................................................................................11
2) Interpretation of operational performance of the company through efficiency ratios...............13
3) Gearing ratios for evaluating financial performance.................................................................14
4) Evaluation of profitability ratios...............................................................................................15
5) Ratios on Investors analysis......................................................................................................17
6) Analysis of cash flow statement................................................................................................18
Part C Findings and recommendations..........................................................................................20
1) Financial strengths and weaknesses..........................................................................................20
2) Conclusion and recommendations.............................................................................................20
Reference list.................................................................................................................................22
Appendices:...................................................................................................................................24
Appendix 1.....................................................................................................................................24
Appendix 2.....................................................................................................................................24

Introduction
Financial position signifies financial and accounting status of a respective business organisation.
Financial position and its statements of a respective company include the profits, loss,
investments, capitals etc. which are evident and help business analyzers and professionals to get
all the information regarding financial status and statements of the company as well. In this
respect, it should be highly identified that researchers need to choose a significant company in
order to represent its current financial status and position in its marketplace. Moreover, the
researchers also try to represent and calculate the final ratio of the company as well ( Weil et al.
2013, p.111). Other than this, it is also formulated that financial status also verifies and compares
the company’s past and present status of financial and accounting management. Along with the
comparison, accountant managers and financial managers try to evaluate the financial status and
position so that the company can be able to improve financial position and statement of the
company so that the respective company acquire a significant and reputed position in its
marketplace (Hirsa and Neftci, 2013, p.101).
The thesis statement of this assignment study is to analyze a company’s financial and accounting
position by representing its current ratios and also the evaluation of the ratios as well. In this
respect, researchers need to collect and gather more information and data regarding that specific
selected company so that the research analysis of this assignment may provide all the ratio
analysis, financial strengths and weaknesses, key financial trends of the company with internal
and external environmental factors, evaluation of profitability ratios and so on to the readers and
other business professionals and analysers, who will go through the assignment (Davies and
Green, 2013, p.100).

Part A
1) Overview of Barclays PLC and the reason for selecting the company
Overview of the company: In order to represent current ratios and evaluation of profitability
ratios and other respective financial reports, one has chosen Barclays PLC respectively. This
company has been founded on 17th November, 1690 in the city of London, United Kingdom.
Headquarter of this company is also situated in One Churchill Place, Canary Wharf, London,
UK.
Barclays is a banking and financial organisation which provides every positive and significant
functions to its customers regarding accounting and financial systems as well (Foulds et al. 2015,
p.371). All these financial systems may include savings of finance, investment, mortgage and
other services related to finance. In this respect, it should be mentioned that Barclays PLC is a
universal bank and it provides its services to the customers throughout the world. In order to
provide some significant information regarding this company, one should highlight that it has
nearly 48 million customers and it performs its operations in 50 countries and territories
reflectively. Moreover, its key people are John McFarlane, the chairman and Jes Staley, Group
Chief Executive (Barclays.co.uk. 2017). This bank includes retail banking, commercial banking,
investment banking and investment management as its services, for which its customers get
highlighted and high quality services regarding their finance and accounting management.
However, the total revenue of this bank is $25.454 billion. Total operating income of this
company is $2.073 billion.
Reason for selecting the company: This Company has been selected for the analysis of this
assignment study of financial position for specific and evaluative reason as well. Some reasons
are highly evaluative and important in order to present financial position and statement of this
company as well (Sahoo and Vidyadhar Reddy, 2014, p.99). It is to be highly signified that as
this is a banking and financial company, people can be able to get more data and information
regarding current and past ratios, profit, loss etc. In this respect, it should be designated that this
company was facing some troubles regarding financial and accounting analysis and ratios from
recent past years. But, in the most recent days, the business analysers and accounting managers
are trying to evaluate and improve their services so that the financial position and statements of
this company can be able to highlight its management and marketplace as well. However, it is to

be informed that researchers have chose this company for this assignment study so that they can
be able to get financial reports and annual reports of finance and accounting definitely and
significantly. If researchers get exact and sufficient data of financial reports and background,
improving and evaluating and also creating a significant data chart and providing information
regarding financial currency and statements to the customers are very easy for them to manage
(Crook, 2014, p.38). Therefore, this company has been selected by the researchers for this
assignment study as well.
2) Identification of different key announcements
In this assignment in order to analyse financial statement it should have to evaluate the different
announcements that the company have been made that can affect company’s financial
performance and financial position. Barclays plc in order to increase their efficiency level and
performance have implemented certain steps regarding investment and mortgage securities if the
company. The management team of the company have signed an agreement with the UK trust
organisation that can lead to increase the sales pattern and increase in growth level is possible.
It has been evaluated from the annual report of Barclays that the company have simplified their
strategies that can help to measure financial performance level and strengthening the base of
capital and control cost effectively and efficiently.
3) Identification of key financial trends of the company with internal and
external environmental factors
In order to evaluate financial statement analysis identification of the key financial trends of the
company should have to be done in an efficient manner by the management team of the
company. Preparation of financial statement depending on the key financial trends and
environmental factors affecting business operations of a company should have to be considered
effectively and efficiently for smooth flow of operations is considered as an important factor in
this regard. In this assignment of financial statement analysis the selected company is Barclays
PLC, a public limited company listed in the London stock exchange is the largest banking
organisation in the World providing services relating to investment banking, wealth management
and financial services appropriately in an efficient manner. Barclays bank of London, UK
operates in the Whole World and the operations and performance are affected by the economic

and changes conditions and it can be evaluated through PESTLE analysis effectively. In these
context environmental factors such as the internal and external factors impacting the financial
operations and performance of the company should have to be evaluated as follows:
External factors-
Political factors: Political factors can directly affect the financial performance and operations of
a company. Political factors such as welfare and social policies and regulations, taxation policies
and their changes that ca directly affect the production capacity of a company (Bekaert et al.
2016, p.22). Barclays plc also affected by the taxation policies. Government stability is another
political factor that can help the operation and production functions such as Barclays to expand
their business operations.
Economic factors: Economic factors such as interest rates, business cycle of the company,
money supply in the economy, level of lifestyle and consumerism rate can directly impact on the
performance level of the company (Roncalli and Weisang, 2016, p.377). Depending on these
factors the management team of Barclays have to decide productivity planning and operations to
manufacture products and services according to the requirements of the customers such as
investment and wealth management services.
Social factors: Social factors impact on the productivity of Barclays that according to a survey it
has been found that the business transactions in 2014 has increased from 59% to 75% effectively
and efficiently that lead the company to higher profitability and revenue (Sharma and Crossler,
2014, p.305).
Technological factors: Technological factors that affect the business operations of Barclays
PLC are mainly the government spending, technological changes, speed of transfer of
infrastructural and technological affect the business operations that lead the company to increase
productivity and returns.
Legal factors: Product safety and services, different employment laws, regulations and
legislations of monopolies and accounting laws and policies should have to be followed by the
directors and management team of the Barclays plc in order to prepare financial statements that
can reveal true and fair view of the annual reports effectively and efficiently in this regard.
Environmental factors: In order to evaluate the financial report of the Barclays PLC, banking
organisation of London, external factors affecting the financial position and operations of the
company should have to be interpreted appropriately to view effectiveness on business (Epstein

and Buhovac, 2014, p.112). The company should have to follow certain laws relating
environment such as waste disposal law and energy consumption that directly impact financial
performance.
Internal factors- Internal factors such as organisational structures, relationship[ between
managers, workers and employees among the company, objectives and aims, business strategies
of the company are considered as the main internal factors that can influence business operations
effectively and efficiently.
Organisational structures: Organisational structure and strategy of this company is to focus on
the customers of UK in order enhance their business scale with investment banking, wealth
management and personal banking (Bies et al. 2016, p.245). Such organisational strategy helps
the business to enhance their operations to international market in order to gain competitive
advantage and marketing capabilities.
Objectives and aims: Barclays plc’s objectives and aims is to serve people to help them achieve
their objectives such as investment banking and wealth management that can affect on the
balance scorecard of the company effectively. Standardised and quality financial services should
have to provide that can lead to create brand loyalty of the company and increase in the
profitability level.

Part B Computation of financial health of the company
Every business organisation should have to analyse their financial reports and statements for
evaluating the financial ratios of the company effectively that can reflect on the financial
positions, strengths and weaknesses of the organisation for a financial year effectively and
efficiently. In this regard the selected company is Barclays PLC, largest banking company of UK
for which ratio analysis should have to be done through liquidity ratio, efficiency ratio, gearing
ratio, profitability and dividend ratio (Freund and Mustaro, 2016, p.206). Depending on these
ratios the organisational management team can make operational decisions and planning
regarding expansion of business operations and profitability that can help to create brand loyalty
appropriately.
Ratio analysis: Accounting tools and techniques include the ratio analysis process as an
important aspect of the financial statement in order to find financial position and strengths and
weakness of a company for particular financial year effectively by the management team that can
help them to make financial decisions regarding investment. It is also considered that effective
planning is the main key of ratio analysis in order to understand and evaluate financial statement
appropriately (Tsai et al. 2016, p.3314). In order to analyse the financial statement of Barclays
plc it is also important to interpret ratios.
Importance of ratio analysis can be evaluated that it can help to judge the operational efficiency
for a particular time period for formulating plans and policies. In order to grow ad increase
performance level of the organisation comparative analysis can be done which can lead to
manage the operations and productivity level (Camin et al. 2016, p.870).

Balance sheet of Barclays plc

Income statement of Barclays plc

1) Evaluation of liquidity ratios
Evaluation of the liquidity ratios are the main important aspect of the financial statement in order
to find strengths and weakness for a financial year. These ratios include the current ratio, quick
ratio and working capital ratio that help to analyse the ability of the organisation to pay off the
long term and short term obligations and debt such as current liabilities (Goldmann, 2016,
p.110). Barclays plc’s liquidity ratios can be measured and interpreted through the financial
statement such as income and balance sheet as follows-(Refer to Appendix 1)
Current ratio: Current ratio can be calculated as
Current ratio= Current assets/ Current liabilities
Particulars 2015 2014 2013 2012
Current assets 363965 582813 759879 552393
Current liabilities 124752 306378 443378 1427364
Current ratio 2.92 1.9 1.71 0.39

From the above calculation it has been found that the current ratio for Barclays plc has been
increased from 2013 and 2014 respectively. As per the accounting rules and regulations we know
that the appropriate current ratio is 2:1, but in this case the ratio in 2015 is 2.94:1 that is above
the appropriate level and therefore it can be concluded that the company has the enough current
assets to meet the long term and short term obligations appropriately.
Quick ratio: Quick ratio can be calculated as
Quick ratio = Quick assets/ Quick liabilities
= Current assets- Stock - Prepaid expenses/ Current liabilities - Bank overdraft
Particulars 2015 2014 2013 2012
Quick assets 363965 582813 759879 552393
Quick liabilities 87863 112283 117512 1427364
Quick ratio 4.14 5.19 6.47 0.39
As per the GAAP and IFRS regulations and policies every business organisation should have to
maintain quick ratio of 1:1 accurately. In this case the quick ratio of the company Barclays does
not meet the requirements and policies that will lead to weakness of the company to meet their
objectives as in 2015 the ratio is 4.14: 1. But it has been found that the company has no closing
stock in the balance sheet that will be considered as the strength point of the organisation.
Working capital ratio: This ratio can be calculated as
Working capital ratio = Current assets - Current liabilities
Particulars 2015 2014 2013 2012
Current assets 363965 582813 759879 552393
Current liabilities 124752 306378 443378 1427364
Working capital ratio 239213 276435 316501 -874971
Working capital ratio means, In this regard the requirement of calculation of net assets of the
company effectively by subtracting current liabilities from current assets. In 2015 the net assets
has been decreased from 2014 and 2013 as the amount of current assets in 2015 is decreasing
from which it can be said the company is unable to pay off the liabilities.

2) Interpretation of operational performance of the company through
efficiency ratios
In order to interpret the operational performance of the organisation it is considered that the
efficiency ratios are the important ratios that can evaluate the operational efficiency and
effectiveness to lead the management team to increase their business operations appropriately.
These ratios are also referred to as the activity ratios that can compute a company’s efficiency to
utilise assets and financial resources in order to generate income and profit for a particular
financial year (Chikezie et al. 2016, p.321). These ratios can help the debtors, creditors and
investors of an organisation to make their decisions whether to invest in the company or not.
Assets turnover, creditors, debtors, current assets and fixed assets turnover are the efficiency
ratios that are calculated as follows-
Assets turnover ratio: Formula of this ratio is-
Assets Turnover Ratio = Turnover/ Total assets
Particulars 2015 2014 2013 2012
Total assets 1650791 2117328 2225397 1490321
Turnover 43690 46893 56094 25609
Assets turnover ratio 0.026 0.022 0.025 0.017
From the above calculations of Assets turnover ratio it is found that the ratio are calculated in
times and in 2015 the ratio is maximum than 2013 and 2014 that is 0.026 times but the figure is
very low, that Barclays financial manager should have to increase turnover by increasing
operational efficiency.
Debtor’s turnover ratio: It can be calculated as-
Debtors turnover ratio = Turnover / Debtors + Bills receivable
Particulars 2015 2014 2013 2012
Turnover 43690 46893 56094 25609
Debtors 2102 2408 2486 4365
Debtors turnover ratio 20.78 19.47 22.56 5.87

From the above measurement the debtors turnover ratio of 2013 is maximum than the other two
years. In 2015 it is 20.78 times but in 2013 it was 22.56 times that the figure has been decreased
as the amount of debtors is low than the other years.
Creditor’s turnover ratio: Formula of this ratio-
Creditors Turnover ratio= Turnover/ Creditors
Particulars 2015 2014 2013 2012
Turnover 43690 46893 56094 25609
Creditors 18462 21238 25399 3107
Creditors turnover ratio 2.37 2.21 2.21 8.24
Creditor’s turnover ratio from the above table has been computed in times and it has been found
that it is maximum in 2015. This indicates that the company pays their suppliers in time that is
good for the company that the ability of paying off the creditors is high of Barclays PLC in this
regard that the ratio is 2.37 times in 2015.
3) Gearing ratios for evaluating financial performance
Shareholders equity and borrowed capital are the main components for calculating the gearing
ratios such as capital gearing ratio and interest coverage ratio in order to measure the financial
leverage and trading on equity capacity of a company.
Capital Gearing ratio: Capital gearing ratio of a company help to analyse the organisational
structure including the stockholders fund for fixed interest payment for a particular period of
time. It can be calculated as-
Capital Gearing ratio= Common stock holders Equity/ Interest bearing bonds
Particulars 2015 2014 2013 2012
Stock holders fund 88154 92880 91732 59986
Fixed interest payments 6625 6440 7962 N/A
Capital gearing ratio 13.31 14.42 11.52 N/A
It has been found from the above table that the capital gearing ratio for 2014 is higher than 2014
and 2015 that is 14.42. Interpretation of the capital structure in order to measure the relationship
between different sources of funds at a fixed interest rate is evaluated through this ratio. In this

case the company is considered as the low geared that the larger portion of stock holders fund is
composed by the equity capital.
Interest coverage ratio: In order to measure and evaluate a company’s ability to make their
payments for interest this ratio should have to be measured by the business analyst effectively
and efficiently. It helps to understand the profitability and risk related to the company from
which the creditors and investors can expect risk and return in future (Ivanov et al. 2015, p.153).
Interest coverage ratio of Barclays plc should have to be calculated in order to identify financial
position. Formula of this ratio-
Interest coverage ratio = Earnings before Interest and Taxes (EBIT)/ Interest expenses
Particulars 2015 2014 2013 2012
EBIT 9898 11756 15872 6570
Interest expenses 6843 8238 11122 N/A
Interest coverage ratio 1.45 1.43 1.43 N/A
From the above table it has been found that interest coverage ratio is maximum in 2015 that is
1.45 from the other financial years.
4) Evaluation of profitability ratios
Profitability ratios are the measurement of financial performance of a company for a particular
financial period from which it can be understood the generations of earnings and profits and the
ability of the company to meet the long and short term obligations appropriately. In this regard
the selected company Barclays PLC’s profitability ratios are mainly Gross profit ratio, Net profit
ratio, Return on capital employed and Return on assets.
Gross profit ratio: Gross profit ratio can be calculated as- Gross profit/ Sales* 100
Particulars 2015 2014 2013 2012
Sales 43690 46893 56094 25609
Gross profit Nil Nil Nil Nil
Gross profit ratio 0 0 0 0
As in the income statement of Barclays plc, there is no gross profit; the gross profit ratio cannot
be calculated.

Return on Capital employed: It can be calculated as-
ROCE = EBIT/ Capital employed* 100
Particulars 2015 2014 2013 2012
EBIT 9898 11756 15872 6570
Capital employed 88154 80125 79004 59986
Return on Capital Employed 11.23% 14.67% 20.09% 10.95%
In order to measure operational effectiveness and efficiency of business this ratio should have to
be calculated. In 2013 it is higher that is 20.09% which indicates that performance level of the
company has been decreased in 2015 that this ratio is 11.23% in 2015.
Net profit ratio: It can be calculated as-
Net profit ratio= Net profit/ Sales*100
Particulars 2015 2014 2013 2012
Sales 43690 46893 56094 25609
Net profit 918 1318 2148 1810
Net profit ratio 2.10% 2.81% 3.83% 7.07%
From the above calculation it can be concluded that net profit ratio in 2013 is higher than other
two financial years as the company’s net profit in 2015 has been decreased for which the net
profit ratio is also decreased in this year to 2.10%. From this analysis it can be said that the
company should have to improve profitability by improving their services effectively.
Return on Assets: Formula for this ratio is-
Return on Assets = Profit After tax/ Total assets *100
Particulars 2015 2014 2013 2012
Profit After Tax 988 1374 2055 1810
Total Assets 1650791 2117328 2225397 1490321
Return on Assets 0.06% 0.06% 0.09% 0.12%
Return on assets ratio is lower in these financial years which mean that the company Barclays plc
is not so profitable and efficient relative to its total assets.

5) Ratios on Investors analysis
Ratios relating to the investment analysis for Barclays plc can be calculated as follows-
EPS: Earnings available to Equity shareholders/ Number of shares
Particulars 2015 2014 2013 2012
EAES 918 1318 2148 1810
Number of shares 169 169 169 169
Earnings per share 5.43 7.8 12.71 10.71
From the above calculation it has been found that the organisation’s Earnings per share has been
decreased from 2013 to 2015 as earnings available to equity shareholders has also been deceased
that lead to decline the earnings per share as to 5.43.
Dividend payout ratio: Dividend per share/ Earnings per share * 100
Particulars 2015 2014 2013 2012
Dividend per share -13 -15.57 -16.38 6.50
Earnings per share 5.43 7.8 12.71 -5.30
Dividend payout ratio -2.39 -1.99 -1.29 -1.22
Dividend payout ratio of the organisation is in negative figure as dividend per share to equity
shareholders is in negative amount for which the organisation can face difficulties.
Dividend yield ratio: Dividend per share/ Market price per share *100
Particulars 2015 2014 2013 2012
Dividend per share -13 -15.57 -16.38 6.50
Market price per share 2.32 2.31 2.31 38.43
Dividend yield ratio -5.06 -6.7 -7.09 0.169
From the above table it is found that dividend yield ratio is in negative terms as dividend per
share to equity and preference shareholders is so low that the company can face loss if the
shareholders and investors unable to invest in the company.
Price earnings ratio: Market price per share/ Earnings per share
Particulars 2015 2014 2013 2012
Market price per share 2.32 2.31 2.31 38.43

Earnings per share 5.43 7.8 12.71 -5.30
Price earnings ratio 0.43 0.3 0.18 -7.25
Price earnings ratio is very low for this organisation compared to the other banking organisations
in London. From the above table it has been found that the ratio has been increased to 0.43 in
2015 than the other two financial years.
Return on Equity: Profit after tax/ Equity shareholders fund* 100
Particulars 2015 2014 2013 2012
Profit after tax 988 1374 2055 1810
Equity shareholders fund 88154 92880 91732 59986
Return on equity 1.12% 1.48% 2.24% 3.02%
From the above table of analysis the profit after tax has been decreased to 988 in 2015 that lead
to decrease the ratio of Return on equity effectively and efficiently. For this reason the financial
preference of the company has also decreased.
Dividends coverage ratio: Profit after tax/ Dividend paid
Particulars 2015 2014 2013 2012
Profit after tax 988 1374 2055 1810
Dividend paid -2205 -2632 -2769 N/A
Dividends coverage ratio -44.81% -52.20% -74.21% Nil
Dividend coverage ratio is the ratio from which the company can understand the ability of the
company to pay divided to shareholders out of the net income. From the above table it can be
concluded that as the company failed to pay to the shareholders the ratio is in negative terms.
6) Analysis of cash flow statement
Cash flow statement analysis of an organisation should have to be done in order to analyse the
cash flow from investing activities, cash flow from operating activities and cash flow from the
financing activities which will lead to evaluate the financial performance effectively and
efficiently. From the cash flow statement analysis of Barclays plc, it can be understood by
measuring the statement that in which segment the expenses have been made and from which

activities the company can make profit appropriately. In this regard the analysis of the cash flow
statement can be done by evaluating the statement.
Cash flow from operating activities has been increased in the financial year 2015 to $ 23771000 t
as compared to 2013 and 2014. The company have improved their performance that reflecting in
the Operating activities and it can be said the company’s current assets has increased.
Total cash flow investing activities has been declined with high level and become negative in
2015 as $ 12431000 from which it can be concluded that Investment in assets such as fixed
assets have been decreased as per the cash flow statement.
Cash flow from financing activities has also been declined in 2015 from 2013 and 2014
effectively but in 2015 the amount is higher than in 2014 from the cash flow financial statement
that is -$ 650000. As a result the changes in cash and cash equivalent have been increased
effectively with a very higher level to $ 11905000 that will lead to understand the company’s
high financial performance in this financial year.

Part C Findings and recommendations
1) Financial strengths and weaknesses
Financial statement analysis of Barclays plc are evaluated by interpreting the Cash flow
statement, Balance sheet and Income statement to measure the financial performance and
financial position of the company for the financial years appropriately. From the above
calculations and interpretation of financial statements strengths and weaknesses of the company
are described as follows-
Strengths: In 2015 the company has enough current assets in order to meet their short term and
long term obligations and it has been found that the company’s current ratio is 2.92:1 that is
above appropriate ratio which is considered as a strong point of the company. The quick ratio is
also higher than its appropriate level mentioned in the accounting rules and legislations
effectively. According to the efficiency ratio the level of assets turnover ratio is lower but it has
been continued to increase year to year. From the measurement and interpretation of efficiency
ratio it has been concluded that the company’s assets and financial sources are utilised in proper
manner in order to increase performance level and financial position in the economy.
Weakness: Weakness of the company can be analysed from the ratio analysis and by comparing
them with other financial years effectively and efficiently. Profitability ratios of the financial
years is so weak as net profit ratios are decreasing from the previous years as net profit is
declining. Ratio of ROCE has also deceased that it will lead to lower performance level and
profitability of the company.
2) Conclusion and recommendations
Financial statement analysis is considered as a process and accounting technique of evaluating
the performance level of an organisation by reviewing and interpreting accounting and annual
reports effectively and appropriately by following accounting rules and regulations for
evaluating projected performance of the company that can lead to help in order to make
decisions. In this regard ratio analysis is the important technique for evaluating strengths and
weakness of the company in a proper manner by efficiency, Profitability, investment, liquidity
ratios and profitability positions of the companies in an appropriate manner. In this regard

analysis of cash flow statement should have to be done in order to measure the investing,
financing and operating activities to evaluate efficiency level of the company.
Recommendations can be concluded by evaluating the financial performance and position of the
Barclays plc that the company should have to provide quality and standardised services including
investment banking, corporate banking, wealth management and other financial services as per
the customer requirements in order to increase the profitability positions of the company. The
company’s holding is so high as compared to the sales level. Therefore it is recommended to the
financial manager and business analyst of the company to increase sales management team
should have to find investors and shareholders for more financial services effectively. Barclay’s
directors should have to take financial decisions in order to pay proper amount of dividend to the
investors and shareholders according to the expectations that they can sustain them for the next
year.

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Appendices:
Appendix 1
Appendix 2
1) Calculation for current ratio = Current assets/ Current liabilities
2012 = 552393/ 1427364 = 0.39
2) Calculation for Quick ratio = Quick assets/ Quick liabilities
= Current assets- Stock - Prepaid expenses/ Current liabilities - Bank overdraft
2012 = 552393 / 1427364 = 0.39
3) Calculation for Working capital ratio = Current assets - Current liabilities

2012 = 552393 – 1427364 = -874971
4) Calculation for Assets Turnover Ratio = Turnover/ Total assets
2012 = 25609/ 1490321 = 0.017 times
5) Calculation for Debtor’s turnover ratio = Turnover / Debtors + Bills receivable
2012 = 25609 / 4365 = 5.87 times
6) Calculation for Creditors Turnover ratio= Turnover/ Creditors
2012 = 25609/ 3107 = 8.24 times
7) Calculation for Capital Gearing ratio= Common stock holders Equity/ Interest bearing bonds
2012 = 59986/ N/A = N/A
8) Calculation for Interest coverage ratio = Earnings before Interest and Taxes (EBIT)/ Interest
expenses
2012 = 6570 / N/A = N/A
9) Calculation for Gross profit ratio = Gross profit/ Sales* 100
2012 = Nil/25609 *100 = 0
10) Calculation for Return on Capital employed = EBIT/ Capital employed* 100
2012 = 6570/ 59986 *100 = 10.95%
11) Calculation for Net profit ratio= Net profit/ Sales*100
2012 = 1810/25609*100 =7.07%
12) Calculation for Return on Assets = Profit After tax/ Total assets *100
2012 = 1810/ 1490321 *100 = 0.12%
13) Calculation for EPS: Earnings available to Equity shareholders/ Number of shares
2012 = 1810/ 169 = $10.71
14) Calculation for Dividend payout ratio: Dividend per share/ Earnings per share * 100
2012 = 6.50/ -5.30 = -1.22
15) Calculation for Dividend yield ratio: Dividend per share/ Market price per share *100
2012 = 6.50/ 38.43 = 0.169
16) Calculation for Price earnings ratio: Market price per share/ Earnings per share
2012 = 38.43/ -5.30 = -7.25

17) Calculation for Return on Equity: Profit after tax/ Equity shareholders fund* 100
2012 = 1810/ 59986 *100 = 3.02%
18) Calculation for Dividends coverage ratio: Profit after tax/ Dividend paid
2012 = 1810/ N/A = Nil