Financial Performance Analysis of Just Eat plc

This assignment focuses on analyzing the financial performance of Just Eat plc, a leading online food delivery company. It examines the company's financial statements to identify strengths and weaknesses, assesses its market position, and proposes strategies for achieving its objectives. The analysis emphasizes the importance of accurate financial forecasting, effective asset management, and skilled human resources in driving Just Eat plc's success.

Business

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK ..............................................................................................................................................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

EXECUTIVE SUMMARY
Just Eat Plc is a business entity which is doing an online business. It takes the orders
online for their consumers and delivers the services. They have to deliver the services in an
innovative way so that they can generate or earn more revenue. The operation highlights that
they have orders up by 42% to 136.4 million as well as they are having a revenue upto 52% to
375.7 million. They have to adjust their basic earning per share which is increased to 85 to 12.2 .
Just Eat Plc is having a strong position whether it is operational as well as financial in the
market. They have to capture their further shares of £23.1billion of the food ordered as well as
delivered in the market when firm is facing high competition. . The company's financial
statement helps in involving the risk as well as uncertainty which is related or associated to
future events along with the circumstances.
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INTRODUCTION
In each and every business entity, appropriate and relevant skill set should be used as it
helps in delivering better products and services to the consumers. It is an ability as well as
capability which is required by putting systematic and sustained effort so that they can carry out
the activities which are complex in nature (Sealy and et. al., 2015). Along with this they have to
function their job which includes ideas, things as well as interpersonal skills. Present report is
based on Just Eat plc which takes the food order online and do delivery services. In the report,
discussion on company which is used in the assignment and their activities.
TASK
Just Eat Plc is a company which deals in online food order as well as delivery services. It
acts as an intermediary among independent food outlets as well as consumers. Company is
having its headquarters in the UK. In this, they allow their service users to search or identify
local restaurants so that they can place order online and should choose pick up as well as
delivery options. Just Eat Plc is listed in the London Stock Exchange and established in 2001. It
is a public limited company and revenue of the business entity is £375.7 million and operating
income is £91.3 million as well as net income is £71.4 million. Just Eat Plc has become a
successful business as well as the champions of online ordering and takeaway. Company is
having shops in approx. thirteen markets and also having almost 17.2 million consumers in the
whole world. The vision of business entity is to bring together everything that's great about food.
The purpose of the company is to provide the best products and services which they want to
provide to consumers and improve existing products and services which will assist in attracting
large number of consumers. (Sousa and et. al., 2015).
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The business entity having has values that company would provide help and guidance as
well as -provide help to each other as well as consumers or restaurant partners. The purpose of
the business entity is to create a better environment in the workplace so that everyone love to be
a part of it. Along with this proper guidance to employees so that goals of the company can be
achieved. . Just Eat Plc helps in building and maintaining relationships among the people. They
have to grasp the opportunity so that they can make appropriate and relevant things personal as
well as fair to everyone. This will assist in improving positivity and productivity. For doing the
marketing of their products and services Just Eat Plc doing their appropriate marketing function,
innovative strategies, wizards related to digital marketing. They have to do innovation in their
services which assist in attracting large number of consumers which will helps in generating
more revenue (Cai and et. al., 2015).
Just Eat Plc should processed the orders over £2.5 billion for the restaurant partners. They
are having their active users which improved 31% to 17.6 million. They should place the order
by using mobile devices so that they can grow which assist in rising 73% of group orders. Just
Eat plc is a company which is using high tech technology and they are also adopting innovative
ways so that consumers can get amazing experience. They have to make the process which are
convenient, relevant as well as reliable assist in rising their expectation. The company is deals in
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India and Ireland and in India it was founded in 2006 which is named as Hungry zone. In Ireland
they acquired 250 restaurants from eat-city.
Just Eat plc having a 48% CSR ratings which are compared to all the business entities.
The category of the employees includes the disclosure of policies, programmes as well as
performance in the diversity, labour relations along labour rights (Van Dooren, Bouckaert and
Halligan, 2015). Along with this they have to attain maximum benefits and also provide proper
training, health and safety. They have to focus on the quality of their policies as well as rules and
regulations so that targets can be attained.
In the present time, Just Eat Plc have decrease by 6% as it denotes the decrement in the
growth rate. There are some opportunities which they can attain that is impressive growth as the
sales of business entity is boosting by 42%. Just Eat Plc having a good demand of their products
and services in the competitive market and they have to fulfil the demand of their consumers
which helps in increasing future growth. Brexit having a impact on the financial performance of
Just Eat Plc. Ventures of Just Eat Plc having interested in the individuals so that they can solve
obstacles in the food chain by using the updated technology. Yes, company having a promising
future then it helps the investors in doing investment in the business entity as the sales of Just Eat
Plc is increasing and they become successful in generating more revenue (Van Dooren and Van
de Walle, 2016).
Just East Plc is working in the public sector as it is controlled by the state. They are
concerned with the services which are provided by the various governmental services. Public
sector includes infrastructure, public transit etc. In the public sector, they have to provide the
services that having a non payer and they are excluded from services which helps in attaining
maximum benefits to the individuals. The entities who are working in the public sector are
organised at the three levels which includes national, regional as well as local. The corporations
which are public owned are differ from the direct administration and in that they are having a
commercial freedoms and they are operating in the commercial criteria and in that decision are
made on production are not taken by the ministry bodies (Rey-Martí, Porcar and Mas-Tur, 2015).
Just Eat plc have to grab the groceries as well as spending the time in the restaurant. The
company is leading in the online takeaway ordering service. The consumers who are hungry
search for the restaurants and place the order for food. The main competitors of the business
entity is Mark & Spencer Group Plc, Greggs Plc, PAM group limited. The main reason for
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company which have just peaked that they have to consolidate as well as competition in the
industry are become a major concern and also they are having a pressure on margins.
The share price of Just Eat plc is 604.25 Financials as well as ratios which helps in
making the correct decisions for the betterment of business entity (Just Eat Share price, 2017).
These are the ratios which helps in identifying and analysing the company's liquidity,
performance as well as productivity in the market by computing the ratios.
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Some ratios are:
Ratios 2016 2015
Current ratio 1.05 1.87
Quick ratio 0.77 1.82
Gross Profit ratio 90.63 90.23
Net profit ratio 19.08 9.33
Inventory turnover ratio 24.28 23.05
Financial leverage 1.28 1.22
From the above ratios it has been analysed that in 2016 company's current ratio is 1.05
and in 2015 it is 1.87 so in 2016 ratio is decrease and it is not good for Just Eat Plc. Then quick
ratio in 2015 is 1.82 but in 2016 it is 0.77 it is also decreasing but it is good for the firm as it
ideal quick ratio is 1:1. Gross profit ratio in 2015 is 90.23 but in 2016 is 90.63, it is increasing
and it is also good for the business entity. Then after identifying the net profit ratio, in 2015 is
9.33 but in 2016 is 19.08. Net profit is increasing and this also good for Just Eat Plc. Then
calculation of inventory turnover ratio, it has been identified that in 2015, it is 23.05 and in 2016,
it is 24.28 and it is also increasing and it denotes the company having high inventory which helps
in delivering better quality products and services so that targets can be attained. After
computation of financial leverage, in 2015 it is 1.22 and in 2016 it is 1.28 while doing
comparison it is increasing which is helpful for the Just Eat Plc. All the ratios are increasing in
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2016 except current ratio but then also company having good performance and productivity in
the market when they are facing high competition. This will help the investors to do investment
in the firm. They can make correct and appropriate decision by analysing or evaluating the
financial statement of Just Eat plc so that they cannot face any issues in reaping goals and
objectives which are pre-decided by the higher authorities.
While doing the consensus forecasts among investment analysis which helps in providing
the proper suggestion that Just eat plc will outperform in the market. Manager of the business
entity should forecast their financial statements on a regular basis which will helps in analysing
the developments and improvements and on the basis of that all the objectives and targets can be
achieved. Just Eat plc have to purchase the assets which will help in increasing the current assets
and on the basis of that current ratio will be increased and this will helps in increasing the
productivity and brand image of the firm. This will help in increasing performance and
productivity.
CONCLUSION
From the above report, it has been articulated that managers and staff members should
use appropriate skills which helps them in delivering better and qualitative services to the
consumers. They have to maintain their products’ quality as it assists in maintaining position in
the market when they are facing high competition. They have to use different skills such as
financial management, marketing, sales as well as consumer services. Along with this they have
to do effective conversation so that they can transmit or share actual information which will
assist in producing products and services and according to that they can generate more revenue.
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REFERENCES
Books and journals
Cai, W. and et. al., 2015. Causal interactions within a frontal-cingulate-parietal network during
cognitive control: Convergent evidence from a multisite–multitask investigation.
Cerebral Cortex. 26(5). pp.2140-2153.
Rey-Martí, A., Porcar, A. T. and Mas-Tur, A., 2015. Linking female entrepreneurs' motivation to
business survival. Journal of business research. 68(4). pp.810-814.
Sealy, R. and et. al., 2015. Women on Boards: Progress following the 2012 Corporate
Governance Code.
Sousa, A. F. and et. al., 2015. Biobased polyesters and other polymers from 2, 5-
furandicarboxylic acid: a tribute to furan excellency. Polymer Chemistry. 6(33).
pp.5961-5983.
Van Dooren, W. and Van de Walle, S. eds., 2016. Performance information in the public sector:
How it is used. Springer.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public
sector. Routledge.
Online
Just Eat Share price. 2017. [Online]. Available through:
<http://www.iii.co.uk/research/LSE:JE.>. [Accessed on 9th August 2017].
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