Financial Performance Analysis of BSkyB Plc

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Calculation of ratios:................................................................................................................1
2. Descriptive analysis.................................................................................................................3
3. Options to improve profits.......................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Finance can be defined as the monetary resources which are used by an organisations to
execute operational activities. While planning to analyse the financial performance managers can
use ratio analysis as it guides to evaluate actual position (Griffith and Wollenhaupt, 2018). This
project is based upon BSkyB Plc which is a British company established in UK. Present report
will cover different elements such as calculations of ratios and recommendations to increase
profits.
MAIN BODY
1. Calculation of ratios:
(A). Gross profit- This reflect part of profit which corporation earned after providing all
expenses related to development and sales of its different products. Sum of Gross profit
generally stated in corporation's income statement as difference sales and COGS (Cucchiella,
D’Adamo and Gastaldi, 2015). In this regard here is gross profits of two year of respective
corporation and computation of GP margin, as follows:
Particulars 2014 2013
Revenue 7632 7235
Less- Cost of sales 4616 4329
Gross profit 3016 2906
(I) Gross profit margin: Gross profit/Net sales*100
2014 £M 2013 £M
Gross profit 3016 2906
Net sales 7632 7235
Calculation 3016/7632*100 2906/7235*100
Gross profit margin 39.52% 40.17%
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