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Assignment Financial Statement Analysis - Doc

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Added on  2020-01-23

Assignment Financial Statement Analysis - Doc

   Added on 2020-01-23

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Financial Statement Analysis
Assignment Financial Statement Analysis - Doc_1
Table of ContentsINTRODUCTION...........................................................................................................................3Ratio analysis of M&S and Sports Direct for the period of 3 years are as follows.....................3CONCLUSION..............................................................................................................................14RECOMMENDATIONS...............................................................................................................14REFERENCES..............................................................................................................................16
Assignment Financial Statement Analysis - Doc_2
INTRODUCTION Financial statement analysis is the process which is undertaken by higher managementfor reviewing the monetary performance of firm that supports better economic decisions. Suchanalysis and its outcome provide Board of Directors with effectual framework for decisionmaking. Hence, by considering the outcome of ratio analysis help managers in developing highlycompetent strategic and policy framework for the upcoming time period. The present report isbased on Marks and Spencer M&S and its competitors such as Sports Direct. M&S is one of theleading retail business organizations of UK which places emphasis on offering high qualityproducts to the customers at affordable prices. Besides this, Sports Direct is one of the leadingsports retailers of UK. Hence, the present report will shed light on the extent to whichprofitability and liquidity position of M&S is sound in against to the rival firm. Besides this, itwill shed light on how efficiently company made use of its assets from the period of 2014 ton2016.Ratio analysis of M&S and Sports Direct for the period of 3 years are as follows Profitability ratio analysis M&S ParticularsFormulasAmount (In SGDMillion)201420152016Net profits (NP)506481.7404.4Operating profit (OP)694.5701.3584.1Sales revenues10309.710311.410555.4Gross profit ratio (GPR)(Gross profit / Total sales) * 10037.5%38.7%39.1%Net profit margin (NPR)(Net profit / Total sales) * 1004.91%4.67%3.83%operating profit margin(OPR)(operating profit / Total sales) *1006.74%6.80%5.53%
Assignment Financial Statement Analysis - Doc_3
2014201520160.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%Gross profit ratio (GPR)Net profit margin (NPR)operating profit margin (OPR)Sports Direct ParticularsFormulasAmount (In SGD Million)201420152016GP1,154,9221,240,8121,284,644NP179,613241,353278,981OP249,131295,581223,178Salesrevenues27059582,832,5602904325GPR(GP / Total sales) * 10043%44%44%NPR(NP / Total sales) * 1007%9%10%OPR(OP / Total sales) * 1009%10%8%
Assignment Financial Statement Analysis - Doc_4

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