Financial Reporting for Business

Financial Reporting for Business

Table of Contents
Introduction......................................................................................................................................3
Calculation of Ratios.......................................................................................................................3
Performance and Position analysis................................................................................................11
Reporting of IAS 19 Employee Benefit.........................................................................................14
The requirement of reporting of pension schemes as per IAS 19..............................................14
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

INTRODUCTION
The present study is based on the company, named as Millennium and Copthorne Hotels plc,
headquarter at London, United Kingdom (Millennium and Copthorne Hotels plc, 2019). The
present study aims to critically analyse the financial performance of the company with the help
of ratio analysis technique. Along with this it will also evaluate MC reporting of Pension
schemes in regards to the IAS 19 Employee Benefits.
CALCULATION OF RATIOS
Computation of ratios for profitability, liquidity, efficiency and gearing for the years 2017 and
2016
Table 1 Calculation of Ratios
Amount In
Million £
% of change
in Ratio
Particulars Formula 2017 2016
Profitability Ratio
Gross profit ratio gross profit/sales*100
Sales 1008 926
gross profit 577 531
gross profit ratio
57.24
%
57.34
% 0.18%
Net profit Ratio net profit/sales*100
net profit 159 98
net profit ratio
15.77
%
10.58
% -49.05%
Return on capital
Employed
Profit before interest and tax /Equity
+ Long term debt
Profit before interest and tax
178.0
0
140.0
0

Equity
3249.
00
3170.
00
Long term debt
1020.
00
1218.
00
Equity + Long term debt
4269.
00
4388.
00
Ratio 0.04 0.03 -30.69%
Return on Equity
Profit after interest before tax
/Equity
Profit after interest before tax
147.0
0
108.0
0
Equity
3249.
00
3170.
00
Ratio 0.05 0.03 -32.80%
Operating Profit
Margin Operating Profit/Sales*100
Operating Profit
145.0
0
107.0
0
Sales
1008.
00
926.0
0
Ratio
14.38
%
11.56
% -24.49 %
Asset Turnover Ratio Sales/Equity+ Long Term debt
Sales
1008.
00
926.0
0
Equity
3249.
00
3170.
00
Long term debt
1020.
00
1218.
00
Equity+ Long term debt
4269.
00
4388.
00
Ratio 0.24 0.21 -11.89%
Liquidity ratio
current ratio current assets/current liabilities
current assets 582 532
current liabilities 446 343
current ratio 1.30 1.55 15.87%
Quick ratio
current assets-inventory/current
liabilities
current assets-inventory 578 527