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Financial Performance Analysis and Valuation

   

Added on  2019-09-21

13 Pages2856 Words464 Views
FinanceMaterials Science and Engineering
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Corporate Analysis
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Table of ContentsIntroduction......................................................................................................................................2Overview of companies...................................................................................................................2Financial structure...........................................................................................................................3Capital & financial risk management..............................................................................................5Assets and operating performance...................................................................................................6Cash flow analysis...........................................................................................................................6Valuation and decision....................................................................................................................7Application of Agency theory.........................................................................................................9Conclusion.....................................................................................................................................10References......................................................................................................................................11
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IntroductionIn this present paper, we will discuss the corporate analysis of the companies, namely, Bellwayand Berkely Company. The paper describes the financial structure, capital and financial risk management, asset and operating performance, valuation, and decision, cash flow analysis and application of finance. Both the companies are lies under the homebuilding industry. Headquarters of both the companies are in the United Kingdom. Overview of companiesBellway is one of the major property developers of the United Kingdom which is based in Newcastle upon Tyne. The company is a public type company which is registered in the London stock exchange, and it is the constituent of FTSE 250 index. The company was recognized in the year 1946 and the total revenue of the company in the year 2015 was approximately £1,765.4 million. The operating income of the company is nearly £283.1million and the total employees ofthe company in the year 2016 are approximately 2000. The company operates throughout the United Kingdom, and it develops local designs with the assistance of the local people. Berkeley group holding Plc. is the public listed company which is the British property developer.The company is based in Cobham, Surrey. The company operates throughout the United Kingdom, and it is listed on the London stock exchange and is a constituent of the FTSE 250 index. The company was established in the year 1976 and the total revenue of the company in theyear 2015 was £2,120.0 million . The net income of the company was £423.5 million. The company won the Queens award for sustainable development in the year 2014. The company
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provides residential work under the various brands such as St George, Berkeley Homes, St Edward, St James and St William. Financial structure 1.Source of fundingThe Berkeley Group Holdings use debt as well as equity sources of funding. The funding also receives funding from local authorities and local government. The Bellway Company receive funds from the government, debts, and equity. The company receive funds from the government through various funding programs such as government affordable homes program.2.Asset structure The assets structure of Bellway Company includes non-current assets which comprise of property, plant, and machinery, investment in joint venture, investment property and subsidiaries, deferred tax assets, and trade and other receivables. The current assets include inventories, cash and equivalents, and trade and other receivables. The total assets of the company in the year 2015 were 2,720,842 and in 2016 are 2,289,384. It shows that the totals assets are increased by 4, 31,458.The asset structures of Berkeley Company debtors, inventories, trade payables, investment, and cash. The total assets of the company in the year 2016 are 3838 and in 2015 is 3406 (www.bellwaycorporate.com/pdf/annual-report-nov-2016.pdf et al., 2017). It shows the total assets of the company are improved. 3.Maturity profile
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