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Performance of Next PLC in Changing Business Environment

   

Added on  2019-12-03

9 Pages2922 Words90 Views
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FINANCIAL REPORTING
Performance of Next PLC in Changing Business Environment_1

TABLE OF CONTENTSIntroduction......................................................................................................................................3Ratio analysis..............................................................................................................................3CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9INDEX OF TABLESTable 1: Ratio analysis of Next PLC...............................................................................................3Table 2: Operating and net profit before and after extraordinary items..........................................7
Performance of Next PLC in Changing Business Environment_2

IntroductionNext PLC is the UK largest retail store that sells cloths footwear and house items. Inorder to analyze company various ratios are used namely profitability, efficiency, gearing andinvestment ratios. In this report an attempt is made for understanding company performance andits efficiency level. Company annual report is also considered for understanding reasons forchange in Next PLC ratios in FY 2015 relative to FY 2014. After calculation of ratios andreading annual report comments are done of performance of the company on various ratios.Ratio analysisTable 1: Ratio analysis of Next PLCRatiosFormula20142015Operating profit 729803Net profit 553635Net Sales37404000Operating Profit Ratio(Operating Profit/ Net Sales) *10019.49 20.08 Net Profit Ratio(Net Profit/ Net Sales) *10014.79 15.88 Current Assets 14681616Current Liabilities835887Closing Stock386417Current RatioCurrent Assets / currentLiabilities1.76 1.82 Quick Ratio(Cu. Assets - Cl. Stock)/Cu.Liabilities1.30 1.35 Net Sales37404000Total Assets21452282Total Assets Turnover RatioNet Sales/ Total Assets1.74 1.75 Interest coverage RatioEBIT729803Annual Interest Expense2531Interest coverage RatioEBIT/ Interest expense29.16 25.90 Dividend coverage ratioProfit after tax553.00635.00Dividend paid on irredeemablepreference share78.0077.50Dividend paid to ordinary145.0877.50
Performance of Next PLC in Changing Business Environment_3

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