Financial Performance Analysis of Ingham Chicken Company

Individual case study Ignham
Chicken Company

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Current financial performance of Inghams group.......................................................................3
Explaining the area that require primary focus...........................................................................5
CONCLUSION...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Analysis of the financial performance of the company is very important as it provides a
base that how business is performing. This is because of the reason when the financial position
of the company will not be good then its operational efficiency will be affected. Thus, for this the
use of different tools like ratio analysis, financial statement analysis is being done in order to
evaluate the working condition. The present study is based on Ingham which was founded by a
family business in the year 1918. The current study will outline the financial position of the
company and in the end it will outline future steps which company need to take to improve its
performance.
MAIN BODY
Current financial performance of Inghams group
Analysis of the financial performance is very important for the company in order to
improve the working (Easton and et.al., 2018). This is necessary for the reason that when the
financial performance of the company will not be good then this will be impacting the overall
working efficiency of the company.
Particulars Formula 2020 2019
Net profit margin Net profit / sales * 100 1.57 5.07
Net profit 40100 126200
Revenue 2555300 2489800
Particulars Formula 2020 2019
Gross profit margin Net profit / sales * 100 16.98 19.76
Gross profit 433900 492100
Revenue 2555300 2489800
Particulars Formula 2020 2019
Current ratio Current asset/ current liabilities 1.03 1.41
Current asset 690500 661400
Current liabilities 671700 469600
Particulars Formula 2020 2019
Quick ratio
(Current asset- inventory)/ current
liabilities 0.70 1.05
Current asset 690500 661400
Inventory 217000 166700