Ratio Analysis for Rangemaster plc

RATIO ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Ratio Analysis..............................................................................................................................1
TASK 2............................................................................................................................................6
(Covered in PPT).........................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Financial analysis refers to evaluation of the financial performance and position of the
company. It is carried out by the experts and analysts for making decision related to the
organisation. Financial analysis of company is carried out using the ratio analysis. It is the tool
that is used for measuring the profitability, efficiency, liquidity and solvency of the firm. Present
Report will carry out financial analysis of Rangemaster plc.
Range Master PLC is manufacturing company which is engaged in supplying and
producing catering machines to restaurants, hotels and the public houses in UK. It carries out all
the trade purchases and sales on credit basis.
TASK 1
Ratio Analysis
Ratio analysis refers to comparison of the line items in financial statements of company.
It is used for evaluating the number of information of the entity like profitability, liquidity,
efficiency of the operations and capital structure of the organisation. Financial analysis is
conducted for making financial decisions of company and taking measures to improve the
financial position of the firm. It is used by investors for evaluating whether the company is
having future growth aspects analysing the performance (Durrah and et.al., 2016). Financial
analysis of the Rangemaster plc is done below.
Particulars Formula 2019 2018 Change
Profitability Ratios
Return on capital
employed
Net
operating
profit/Emp
loyed
Capital 23.08% 19.39% 19%
Employed Capital
Total
assets –
Current
liabilities
(3850-
1120) 2730 (3610-980) 2630
Net profit 630 510
Return on Equity Net
Income /
Shareholde
32.64% 31.29% 4%
1