Financial Analysis and Management - Assignment

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Running Head: Financial analysis and management1Project report:Financial analysis and management
Financial analysis and management2Introduction:It is requisite for every investor and the financial analyst to evaluate the position ofthe market as well as the company to identify the bets market situation and the company toinvest their amount. Various techniques and methods have been invented through which itbecomes easy for the analyst as well as the investor to identify and analyze the market andmake a better decision about the performance and the situation of the company.In this report, Marshall Motor Holdings Plc has been analyzed to identify that howthis company is performing in the market in context of the financial information. Thisanalysis has been done to make a decision about investment or not to invest into the businessof the company. For this, various ratio analysis, financial analysis and market situation of thecompany has been analyzed so that a better decision could be made and it becomes easy forthe investors to analyze the position of the investments in the company.More, in this report, competitive company of Marshal Motor Holdings plc which isLookers plc has also been analyzed and it has been found that how this company isperforming in the market and what is the current position of this company in the market? Thebest company has been evaluated according to the market position in this report.Company overview:Firstly, the study has been done over the background, mission and vision of both thecompanies which are as follows:Marshal Motor holdings plc:MARSHAL MOTOR HOLDINGS PLC is operating its business into the Londonstock exchange. The main business and functions of this company is to sales the new and oldvehicles as well as repair them to enhance their utilization timing. This company alsoprovides the commercial vehicle and passenger vehicle on lease. Currently, this company hastotal 103 franchises all over the world which has dealt with around 24 brands of the vehicleand this company is operating its business in 25 countries in which 86 sites are managing bythis company (Home, 2017). The main mission and vision of this company is to maintain thegood relationship with the current clients and grab the entire car dealership market throughdealing with every brand.Lookers plc:
Financial analysis and management3LOOKERS PLC is operating its business into the London stock exchange. The mainbusiness and functions of this company is car dealership chain. This company reveals aboutvarious motor brands. Currently, this company has diversifies its market into variouscountries and it is enhancing its market through cracking the various new deals with variouscar making companies (Home, 2017). The main mission and vision of this company is tomaintain the good relationship with the current clients and make new deals with the carmanufacturing companies so that the market share of the company could be enhanced.Financial analysis:Further, the study has been done over the financial position of both the companies toanalyze and evaluate the position of both the companies. For this study, various tools havebeen analyzed. The main activities and the figures of both the company have been analyzedfor this report. The study of financial statement of both the companies is as follows:Marshal Motor holdings plc:Through the financial statements of the MARSHAL MOTO HOLDINGS PLC, it hasbeen analyzed that the position of this company is getting better day by day. Firstly, the studyover the total revenues of the company depict that the total revenues has been enhanced by107% in last 5 years. Further, the other aspect of the income statement, balance sheet andcash flow has also been analyzed to evaluate the position of the company. The gross profitposition and the net profit position of the company depict that the operating profit has beenenhanced by 106% and net profit has been enhanced by 134% from last 5 years which depictabout the less operating expenses in last 5 years (Schlichting, 2013).Further, the study has been done over the balance sheet of the company and it hasbeen found that the current assets and current liabilities of the company has been enhanced by115% and 123% from last 5 years which depict that the company has enhanced the level ofthe current assets as well as current liabilities according to the operations of the company sothat the working capital could be managed properly (Phillips and Stawarski, 2016).More, the study has been done over the total assets, total liabilities and the total equityof the company. Through the analysis over all the three aspects, it has been found that the118%, 120% and 110% changes have taken place into the total assets, total liabilities and thetotal equity of the company respectively (Palicka, 2011).Financial Data
Financial analysis and management4DescriptionMarshall Holdings plc ($)20162015201420132012ChangesRevenue1,89,94,05,0001,23,27,61,0001,08,58,83,00094,05,05,00079,44,37,000107%Cost ofgoods sold1,67,89,49,0001,08,74,52,00095,97,12,00082,67,07,00070,11,53,000107%Grossprofit22,04,56,00014,53,09,00012,61,71,00011,37,98,0009,32,84,000106%Operatingprofit2,90,54,0001,82,46,0001,52,43,0001,25,72,00068,81,000126%Net profit1,77,54,0001,17,14,00099,36,00077,32,00033,05,000134%Interest29,85,00014,18,00011,40,00011,95,00011,66,000109%Inventory38,00,16,00024,06,32,00016,30,11,00013,49,58,00011,04,77,000120%Currentassets47,51,72,00030,74,86,00023,80,18,00021,43,37,00015,73,73,000115%Receivables8,46,61,0003,81,93,0007,03,01,0007,49,43,0004,32,84,00099%Currentliabilities58,49,14,00028,99,70,00025,14,11,00021,28,34,00015,53,40,000123%Payables49,73,40,00021,24,06,00022,14,42,00018,25,44,00012,86,86,000123%Equity14,56,38,00012,98,84,0006,61,20,0006,06,81,0005,59,46,000110%Totalliabilities65,60,14,00032,51,19,00028,70,14,00024,72,56,00018,72,75,000120%Total assets80,16,52,00045,50,03,00035,31,34,00030,79,37,00024,32,21,000118%(Morningstar, 2017)
Financial analysis and management5Through the analysis, it has been found that various positive changes have taken placeinto the performance and the position of the company in last five years which depicts aboutthe better position of the company in the industry.Lookers plc:Through the financial statements of the LOOKERS PLC, it has been analyzed that thecompany is achieving growth continuously. Firstly, the study over the total revenues of thecompany depict that the total revenues has been enhanced by 100% in last 5 years. Further,the other aspect of the income statement, balance sheet and cash flow has also been analyzedto evaluate the position of the company (Madhura, 2014). The gross profit position and thenet profit position of the company depict that the operating profit has been enhanced by 92%and net profit has been enhanced by 115% from last 5 years which depict about the lessoperating expenses in last 5 years.Further, the study has been done over the balance sheet of the company and it hasbeen found that the current assets and current liabilities of the company has been enhanced by1022% and 104% from last 5 years which depict that the company has enhanced the level ofthe current assets as well as current liabilities according to the operations of the company sothat the working capital could be managed properly (Kurth, 2013).More, the study has been done over the total assets, total liabilities and the total equityof the company. Through the analysis over all the three aspects, it has been found that the101%, 103% and 93% changes have taken place into the total assets, total liabilities and thetotal equity of the company respectively (Krantz, 2016).Financial DataDescriptionLookers plc ($)20162015201420132012ChangesRevenue4,08,82,00,0003,64,91,00,0003,04,29,00,0002,46,45,00,0002,05,66,00,000100%Cost ofgoods sold3,63,87,00,0003,19,69,00,0002,64,68,00,0002,12,87,00,0001,78,43,00,000101%Gross profit44,95,00,00045,22,00,00039,61,00,00033,58,00,00027,23,00,00092%Operating102%
Financial analysis and management6profit10,08,00,0008,06,00,0007,42,00,0005,70,00,0004,79,00,000Net profit8,13,00,0005,08,00,0004,68,00,0003,60,00,0002,70,00,000115%Interest1,76,00,0001,41,00,0001,19,00,0001,05,00,0001,26,00,00083%Inventory83,94,00,00081,60,00,00054,88,00,00044,67,00,00038,41,00,000103%Currentassets1,17,13,00,0001,14,39,00,00079,12,00,00065,93,00,00055,92,00,000102%Receivables26,64,00,00030,14,00,00021,46,00,00018,95,00,00015,04,00,00095%Currentliabilities1,13,03,00,0001,08,54,00,00072,52,00,00061,03,00,00051,30,00,000104%Payables26,67,00,00026,57,00,00019,33,00,00017,20,00,00014,92,00,00095%Equity34,17,00,00029,78,00,00025,69,00,00022,73,00,00020,33,00,00093%Totalliabilities1,36,61,00,0001,28,73,00,00086,41,00,00072,41,00,00062,92,00,000103%Total assets1,70,78,00,0001,58,51,00,0001,12,10,00,00095,14,00,00083,25,00,000101%(Morningstar, 2017)Through the analysis, it has been found that various positive changes have taken placeinto the performance and the position of the company in last five years which depicts aboutthe better position of the company in the industry. But in comparison of the MARSHALMOTOR HOLDINGS PLC, the company has achieved less growth.Ratio analysis:Further, the study of ratio analysis has been conducted over both the companies toanalyze and evaluate the liquidity position, solvency position, efficiency position andprofitability position of both the companies. For this study, various ratio analysis methodshave been analyzed. The main activities and the figures of both the company have beenanalyzed for this report. The study of ratio analysis of both the companies is as follows.
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