Financial Performance and Analysis of CRH Group

FINANCE AND ACCOUNTING
FOR DECISION-MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Financial performance over 5 years.............................................................................................1
Comparison of last 2 years between CRH and Persimmon plc...................................................2
Business from investor's point of view........................................................................................6
Changes in accounting policies and its impact on CRH..............................................................7
Limitations of analysis. ...............................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Financial decision making is defined as the process dealing with all the decision related
to the financial structure of company. These financial decisions are of great importance to the
organisation. They are taken analysing the financial position and health of organisations using
the financial statements and tools like ratio analysis. Present report is about the use of financial
statements of company in making informed decisions for the company. Study is done on CRH
Group which is an company dealing in manufacturing and distribution of building materials.
The report covers the analysis over 5 years and comparison with its competitor Persimmon Plc
MAIN BODY
CRH PLC
It is an international group dealing in diversified construction materials that manufactures
as well as supply various products for construction industry. It was incorporated and established
and is domiciled in Ireland currently. It is known as biggest Irish company and is having
primary listing on London Stock exchange. It is having headquarters in Dublin, Ireland and is
constituent of FTSE 100 Index. Company is performing excellently well total revenues of
€29790 million, net income of €2521 million in 2018. It is having employees around 85000 till
2019. Company is constantly growing and is earning handsome returns over its business.
Financial performance over 5 years
Income Statement
2014 2015 2016 2017 2018
Revenue 18912 23635 27104 25220 26790
COGS 13427 16394 18267 16903 18152
Gross Profit 5485 7241 8837 8317 8638
Balance Sheet
Assets
Non current assets 13290 22610 22200 21862 25662
Current Assets 8727 9397 9394 9771 9511
Total Assets 22017 32007 31594 31633 35173
Current Liabilities 3867 6369 5898 6031 6079
Non Current 7973 12623 11801 11111 13065
1