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Finance for managers

   

Added on  2020-01-15

18 Pages5395 Words487 Views
Finance for managers1

TABLE OF CONTENTSIntroduction..........................................................................................................................................41) .....................................................................................................................................................42) .....................................................................................................................................................83) ...................................................................................................................................................124) ...................................................................................................................................................16CONCLUSION .................................................................................................................................17REFERENCES...................................................................................................................................182

Illustration IndexIllustration 1: Ratio analysis comparison.............................................................................................4Illustration 2: Overall analysis of company..........................................................................................5Illustration 3: Return analysis...............................................................................................................6Illustration 4: Analysis of company structure.......................................................................................7Illustration 5: Turnover changes analysis.............................................................................................93

INTRODUCTION`Finance is a field that deals with the study of investments which includes the dynamics ofassets and the liabilities over time used by the business owners. It can also be defined as the scienceof money management effectively used by the finance managers in order to increase their efficiencyand effectiveness. It aims to price assets based on their different risk level and their expected rate ofreturn. Boots company has been selected for this project report is located in United kingdom. Itdeals in Pharmaceutical products which provides different services like providing medicines, healthand care products. It explains the financial and non-financial analysis of the company by definingvarious parameters.1) The Boots Company PLCPEER GROUP (2705 companies)0102030405060708090100 % GEARING1.1466.280123LIQUIDITYRATIO2.541.01Illustration 1: Ratio analysis comparisonInterpretationsThe above analysis will correctly reflecting the position of boots company's ratio ascompared to overall industry's average. The liquidity ratio of the company is 2.54 which higher thanthe overall industry's average which is only 1.01. This higher ratio is due to increasing liquid assetsof the company and lower of current liabilities. Another ratio is gearing ratio which is only 1.14%as compared to their peer companies ratio which is 66.28%. The company needs to increase theirEquity capital and lessens their long-term debt in order to increase the overall ratio. The gearingratio reflects the ability of a firm to grow more in near future.4

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