Assignment On Game Workshop & Character Group - Financial Performance
Added on 2020-02-05
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TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3Question 1........................................................................................................................................3Internal and external financial performance analysis..................................................................3Q2. Role of auditor and changes incorporated in the audit report.............................................11Question 3: Computation of IRR ..............................................................................................12CONCLUSION..............................................................................................................................13REFERENCES .............................................................................................................................15
INTRODUCTION Looking at the changing market situations, it becomes important for all the managers tomeasure their operational outcome and financial position so as to make solid decisions for thefuture success. Strategic Financial Analysis (SFA) can be explained as a process of interpretingfinancial results to identify reasons for poor performance so that better and effective decisionscan be made for meeting targets. The present assignment aims at analysing financial performanceof two British based companies that are Game Workshop Plc and Character Group Plc by usingratio analysis methodology. It will be done on the basis of profitability measurement, efficiency/activity ratios, liquidity performance and solvency position as well. Moreover, the report willalso describe the role of auditor and change in audit report as per recent UK auditing andreporting standards. At the end, the report will apply investment appraisal techniques to assessproject viability for Trump Manufacturing to advice that whether they should invest money ornot. Question 1Internal and external financial performance analysisProfitability ratios Games workshop Plc Character Group plc 2015 (£000)2016 (£000)2014 (£000)2015 (£000) Turnover 1191321180699788999054Gross profit 82144806312913736655Net profit 1225713496594510239Gross profit margin 68.95%68.29%29.77%37.01%Net profit margin 10.29%11.43%6.07%10.34%Total assets67441698635654157894Return on assets 18.17%19.32%10.51%17.69%Total equity capital 5152553163994415241Return on equity 23.79%25.39%59.78%67.18%
Profitability narratives: Profitability ratios measure that how efficiently an organization is generating return ontheir total business revenue (Bhattacharjee and Moreno, 2013). Games workshop Plc (GWP) and
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