Next Plc And Hennes & Mauritz (H & M)- Ratio Analysis For Performance

Accounting & Finance
for Managers

Table of Contents
Introduction................................................................................................................................5
QUESTION 1.............................................................................................................................5
Question 2................................................................................................................................13
Conclusion................................................................................................................................17
references..................................................................................................................................18

Index of Tables
Table 1: Current ratio of two companies....................................................................................4
Table 2: Asset turnover ratio of two companies.........................................................................5
Table 3: Inventory turnover ratio of two companies..................................................................5
Table 4: Days of inventory of two companies...........................................................................6
Table 5: Receivables turnover ratio of two companies..............................................................6
Table 6: Gross profit margin of two companies.........................................................................6
Table 7: Operating profit margin................................................................................................7
Table 8: Free cash flow..............................................................................................................7
Table 9: COGS as percentage of revenue..................................................................................8
Table 10: Revenue per employee...............................................................................................8
Table 11: Staff turnover ratio of Next Plc..................................................................................8
Table 12: Staff turnover ratio of H&M......................................................................................9
Table 13: Estimated working days of Next Plc..........................................................................9
Table 14: Estimated working days lost of H&M.......................................................................9
Table 15: Liquidity position of Next Plc..................................................................................11
Table 16: Asset Utilization of Next Plc....................................................................................11
Table 17: Depreciation on machines........................................................................................12
Table 18: Depreciation on machines........................................................................................12
Table 19: Payback Period.........................................................................................................12

Illustration Index
Illustration 1: ARR Method......................................................................................................14
Illustration 2: NPV Method......................................................................................................16