Financial Ratio Analysis on Morrison Supermarket PLC
Added on 2020-01-16
11 Pages3298 Words187 Views
FINANCE
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31. Company performance and its Background............................................................................32 .Various Ratios and their calculation.......................................................................................4Ratio calculation of Morrison supermarket plc...........................................................................53. The performance of the Morrison company to the investor with the above ratios.................7CONCULSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONThe project report is about the assessing the performance of the Morrison (Wm)Supermarkets PLC company which is situated in London. The purpose of the financial dataanalysis is done through the various financial activity of the company. It covers all the Ratiosanalysis with the motive to examine the group and ability to assess the performance of thecompany(Arcand, Berkes and Panizza., 2012). The report also analysed the financial statementby using the balance sheet of the company with taking the at least three years of the data. On thebasis of the Analysis the certain interpretation have been done to take the idea of the investmentdecision for the company . On the basis of the all the findings and the analysis a annual report isbeing prepare to see the overall impact of the finance on the company performance. The concerninvestor have made their decision by taking the shareholders comments.TASK 11. Company performance and its BackgroundWm Morrison is one of the supermarket plc which is dealing in the Morrison. It is the 4thlargest supermarket in the united kingdom behind sainsbury and Asda. It is established in 1899.the location of the stores where mostly in the north of the England,but now it has switch in thesouth wards also. In the 2016 its has 498 superstores across the England. The history of theMorrison is starts with the opening of the small shop in the city centre. It was as self serviceshop,the company first open its supermarket as Victoria with the variety of the product have thepleasant price to it. The program for the conversion of the store to safe way to the Morrison wasthe largest in the retail history(Bakand, Hayes and Dechsakulthorn., 2012). In the 2005 theMorrison started to close the safe ways which is the premises was 50-50 among both of them.The traditional structure of the Morrison supermarket is known as the market street . In the 2012the company is come under the retail website with the name Morrisons cellar through whichwine were sold around the world with the expansion of the market.2 .Various Ratios and their calculation.Ratio : it refers to the relation between the two different numbers of the times of the valueis contain and the other contained inside the others. It is basically the comparision between thetwo different variables in the percentage form.
There are various ways or methods to calculate the ratios for the financial statement. Under thisreport the annual report of the Morrison company is being taken into accounts(Billio and et. al.,2012). The ratios follows as:1.Profitability ratio : It is way of financial calculation which is used to assess the growthof the company through generating maximum earning by comparing its expenses and thecost incurred for the time period(Brealey and et. al., 2012).It is based on the judgement of the company on the investment part regarding the level of thecompany resources and the assets. It comprise of the certain ratios:Gross Margin ratioProfit marginreturn on assetsReturn on capital employedreturn on the equity(Buera, Kaboski and Shin., 2011).To calculate return on capital employed:= Net profit/ capital employed.To calculate operating profit : = Operating profit/salesTo calculate Gross profit margin := Gross profit/sales2.liquidity ratios: It refers to the relationship between the company assets and theliabilities(Kotz, Kozubowski and Podgorski., 2012) . It is very helpful for the companybecause, it gives the company an idea about the company ability to pay the long term andthe short term liabilities . The profitability of the company is mostly depend on theliquidity position of the company that whether the company is going to pay off their debts. It also comprises of the following:1.current ratio.2.Acid test ratio.To calculate the current ratio:= current assets/current liabilitiesTo calculate the acid test ratio := Liquid assets(current assets-stock) / current liabilities
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Managing Finance Coursework: Financial Ratio Analysis of Morrison PLClg...
|14
|2631
|349
FINANCIAL MANAGEMENT April, 2013 Contentslg...
|22
|5045
|304
Accounting Financial Analysis Reportlg...
|21
|4907
|439
Business Functions and Interrelation: Sainsbury's, Morrisons, Tesco plc.lg...
|2
|2525
|336
Financial Management: A Comparative Analysis of J Sainsbury and Morrisonslg...
|13
|1177
|138
Financial decision making assignment PDFlg...
|13
|3722
|80