Financial Management: Ratio Analysis and Financial Statements of Tate & Lyle

Financial management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Ratio Analysis..................................................................................................................................1
Financial statements of Tate & Lyle of last five years....................................................................1
Balance sheet...............................................................................................................................1
Income statement.........................................................................................................................3
Cash flow statement.....................................................................................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

INTRODUCTION
Financial management is really a company management field dedicated to the selective use of
resources as well as the appropriate examination of that same means of funding to allow the
investment unit to step in the direction of achieving its objectives (Kumar, 2019). Tasks such as
maintaining the supply of funds, assigning them, handling them, spending them, monitoring
costs, predicting financial needs, preparing income and calculating returns on capital, and
determining capital expenditure must be handled by the enterprise. In this report, five years’ ratio
of Tate & Lyle plc have been calculated by assessing the information for balance sheet, cash
flow statements and income statement.
Ratio Analysis
Ratio analysis Worksheet
Profitability ratio 2016 2017 2018 2019 2020
Return on Net capital em-
ployed 8.14 11.65 14.71 12.83 14.04
Profit Margin 6.92 9.3 9.78 6.57 8.5
Net assets turnover 125.35 151.5 196.03
226.2
9 219.9
Solvency Ratio 2016 2017 2018 2019 2020
Current ratio 1.64 2.11 2.31 1.61 2.23
Quick ratio 0.93 1.13 1.2 0.89 1.3
Stock turnover ratio 5.4 6.48 6.9 7.2 6.5
Debtors ratio 8.5 9.6 5.8 6.3 4.5
Creditors ratio 12.2 16.2 13.2 14.5 13
Investment ratio 2016 2017 2018 2019 2020
Gearing ratio 35.20%
41.42
% 45.20% 36% 32.50%
Interest coverage ratio 5.35 8.06 9.67 8.74 9.97
Earning per share 0.44 0.65 -0.06 -0.14 0.19
Price to earning ratio 4.35 0.56 0.04 -0.32 0.35
Dividend yield 4.3 5.3 6.3 7.3 8.3
Dividend cover 0.35 1.39 1.9 1.64 1.67
1