Financial Analysis of Intertek Group Plc

Running head: ACCOUNTING AND FINANCE
Accounting and Finance
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1ACCOUNTING AND FINANCE
Table of Contents
Introduction......................................................................................................................................2
Analysis of Ratios............................................................................................................................2
Strategic Recommendations............................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2ACCOUNTING AND FINANCE
Introduction
The main aim of this report is to analyze and evaluate the financial performance of one of
the major companies of United Kingdom, Intertek Group Plc. Intertek Group Plc is a
multinational product testing, inspection and certification company. The company was
established in 1888 and it is headquartered at London, United Kingdom (UK) (intertek.com
2018). For the purpose of financial analysis, Ratio Analysis tool is used. Financial analysis on
Intertek Group will be majorly helpful to identify the financial trend of the company along with
current financial issues related to financial performance.
Analysis of Ratios
Profitability Ratios
From the above table, it can be observed that there is an increase in both operating profit
margin and net profit margin that indicates good financial performance of Intertek Group. In
2017, operating profit margin of 15.26% implies that Intertek Group has made £0.152 before
interest and taxes for every pound of sales (intertek.com 2018). In addition, net profit ratio of
11.06% states that the company has become able to convert 11.06 percent of sales into profit. It
can be noticed that Intertek Group has been able to increase their sales; and the increase in sales