SBLC7010 Financial Analysis and Management
Added on 2020-04-21
26 Pages6131 Words45 Views
Running Head: Financial analysis and management 1Project report: Financial analysis and management
Financial analysis and management 2Introduction:It is requisite for every investor and the financial analyst to evaluate the position of the market as well as the company to identify the bets market situation and the company to invest their amount. Various techniques and methods have been invented through which it becomes easy for the analyst as well as the investor to identify and analyze the market and make 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 how this company is performing in the market in context of the financial information. This analysis has been done to make a decision about investment or not to invest into the business of the company. For this, various ratio analysis, financial analysis and market situation of the company has been analyzed so that a better decision could be made and it becomes easy for the investors to analyze the position of the investments in the company. More, in this report, competitive company of Marshal Motor Holdings plc which is Lookers plc has also been analyzed and it has been found that how this company is performing in the market and what is the current position of this company in the market? The best 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 the companies which are as follows:Marshal Motor holdings plc:MARSHAL MOTOR HOLDINGS PLC is operating its business into the London stock exchange. The main business and functions of this company is to sales the new and old vehicles as well as repair them to enhance their utilization timing. This company also provides the commercial vehicle and passenger vehicle on lease. Currently, this company has total 103 franchises all over the world which has dealt with around 24 brands of the vehicle and this company is operating its business in 25 countries in which 86 sites are managing by this company (Home, 2017). The main mission and vision of this company is to maintain the good relationship with the current clients and grab the entire car dealership market through dealing with every brand. Lookers plc:
Financial analysis and management 3LOOKERS PLC is operating its business into the London stock exchange. The main business and functions of this company is car dealership chain. This company reveals about various motor brands. Currently, this company has diversifies its market into various countries and it is enhancing its market through cracking the various new deals with various car making companies (Home, 2017). The main mission and vision of this company is to maintain the good relationship with the current clients and make new deals with the car manufacturing 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 to analyze and evaluate the position of both the companies. For this study, various tools have been analyzed. The main activities and the figures of both the company have been analyzed for 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 has been 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 by 107% in last 5 years. Further, the other aspect of the income statement, balance sheet and cash flow has also been analyzed to evaluate the position of the company. The gross profit position and the net profit position of the company depict that the operating profit has been enhanced by 106% and net profit has been enhanced by 134% from last 5 years which depict about 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 has been 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 of the current assets as well as current liabilities according to the operations of the company so that 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 the 118%, 120% and 110% changes have taken place into the total assets, total liabilities and the total equity of the company respectively (Palicka, 2011).Financial Data
Financial analysis and management 4DescriptionMarshall Holdings plc ($)20162015201420132012ChangesRevenue1,89,94,05,000 1,23,27,61,000 1,08,58,83,000 94,05,05,000 79,44,37,000 107%Cost of goods sold1,67,89,49,000 1,08,74,52,000 95,97,12,000 82,67,07,000 70,11,53,000 107%Gross profit22,04,56,00014,53,09,000 12,61,71,000 11,37,98,000 9,32,84,000 106%Operating profit2,90,54,000 1,82,46,000 1,52,43,0001,25,72,000 68,81,000 126%Net profit1,77,54,000 1,17,14,000 99,36,000 77,32,000 33,05,000 134%Interest29,85,000 14,18,000 11,40,000 11,95,000 11,66,000 109%Inventory38,00,16,00024,06,32,000 16,30,11,000 13,49,58,000 11,04,77,000 120%Current assets47,51,72,00030,74,86,000 23,80,18,000 21,43,37,000 15,73,73,000 115%Receivables 8,46,61,000 3,81,93,000 7,03,01,0007,49,43,000 4,32,84,000 99%Current liabilities58,49,14,00028,99,70,000 25,14,11,000 21,28,34,000 15,53,40,000 123%Payables49,73,40,00021,24,06,000 22,14,42,000 18,25,44,000 12,86,86,000 123%Equity14,56,38,00012,98,84,000 6,61,20,0006,06,81,000 5,59,46,000 110%Total liabilities65,60,14,00032,51,19,000 28,70,14,000 24,72,56,000 18,72,75,000 120%Total assets80,16,52,00045,50,03,000 35,31,34,000 30,79,37,000 24,32,21,000 118%(Morningstar, 2017)
Financial analysis and management 5Through 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 about the 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 the company 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 analyzed to evaluate the position of the company (Madhura, 2014). The gross profit position and the net 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 less operating expenses in last 5 years. Further, the study has been done over the balance sheet of the company and it has been 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 of the current assets as well as current liabilities according to the operations of the company so that 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 the 101%, 103% and 93% changes have taken place into the total assets, total liabilities and the total equity of the company respectively (Krantz, 2016).Financial DataDescriptionLookers plc ($)20162015201420132012ChangesRevenue4,08,82,00,000 3,64,91,00,000 3,04,29,00,000 2,46,45,00,000 2,05,66,00,000 100%Cost of goods sold3,63,87,00,000 3,19,69,00,000 2,64,68,00,000 2,12,87,00,000 1,78,43,00,000 101%Gross profit44,95,00,000 45,22,00,000 39,61,00,000 33,58,00,000 27,23,00,000 92%Operating 102%
Financial analysis and management 6profit10,08,00,000 8,06,00,000 7,42,00,000 5,70,00,000 4,79,00,000 Net profit8,13,00,000 5,08,00,000 4,68,00,000 3,60,00,000 2,70,00,000 115%Interest1,76,00,000 1,41,00,000 1,19,00,000 1,05,00,000 1,26,00,000 83%Inventory83,94,00,000 81,60,00,000 54,88,00,000 44,67,00,000 38,41,00,000 103%Current assets1,17,13,00,000 1,14,39,00,000 79,12,00,000 65,93,00,000 55,92,00,000 102%Receivables 26,64,00,000 30,14,00,000 21,46,00,000 18,95,00,000 15,04,00,000 95%Current liabilities1,13,03,00,000 1,08,54,00,000 72,52,00,000 61,03,00,000 51,30,00,000 104%Payables26,67,00,000 26,57,00,000 19,33,00,000 17,20,00,000 14,92,00,000 95%Equity34,17,00,000 29,78,00,000 25,69,00,000 22,73,00,000 20,33,00,000 93%Total liabilities1,36,61,00,000 1,28,73,00,000 86,41,00,000 72,41,00,000 62,92,00,000 103%Total assets1,70,78,00,000 1,58,51,00,000 1,12,10,00,000 95,14,00,000 83,25,00,000 101%(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 about the better position of the company in the industry. But in comparison of the MARSHAL MOTOR HOLDINGS PLC, the company has achieved less growth. Ratio analysis:Further, the study of ratio analysis has been conducted over both the companies to analyze and evaluate the liquidity position, solvency position, efficiency position and profitability position of both the companies. For this study, various ratio analysis methods have been analyzed. The main activities and the figures of both the company have been analyzed for this report. The study of ratio analysis of both the companies is as follows.
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