Report on Accounting and Financial Management

Running Head: Accounting and financial management
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Project Report: Accounting and financial management

Accounting and financial management 2
Executive Summary:
This report has been prepared to analyze the financial performance of a company. In
this report, CORE approach (context performance, overview of the comapny, ratio analysis
and evaluation) has been done to evaluate the financial strength of the company. Further, the
financial statement of the comapny has been evaluated to analyze the changes and the
performance of the comapny in terms of the financial figures. More, the competition analysis
has also been done to find out the condition of the comapny in the market. For this report,
MARSHAL MOTOR HOLDINGS PLC has been taken into the concern and the above
evaluation method has been performed over this company.

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Contents
Part A................................................................................................................................4
Introduction.................................................................................................................4
CORE approach.........................................................................................................4
Financial performance...............................................................................................8
Market position...........................................................................................................9
Competitor analysis.................................................................................................10
Conclusion.................................................................................................................12
Part B1 Fido’s Frisbees...................................................................................................13
Case B1...........................................................................................................................13
Introduction...............................................................................................................13
Profit of the company...............................................................................................13
Breakeven perspective............................................................................................13
Cash flow forecast...................................................................................................14
Recommendation and conclusion.........................................................................14
References.......................................................................................................................15
Appendix.........................................................................................................................17

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Part A
Introduction:
This report has been prepared to analyze the performance of the Marshall Motor plc.
This report depicts the user about the various position of the company which could be used
by the user while making a decision about making the investment into the company. This
report has been prepared over the company through taking the concern of various tools and
techniques so that the performance could be measured in a perfect manner and a good
result could be offered to the top level management of the company to make a better
decisions about the performance of the company and make the strategies on the basis of
that (horngren, 2009).
In this report, CORE approach (context performance, overview of the comapny, ratio
analysis and evaluation) has been done to evaluate the financial strength of the company.
Further, the financial statement of the comapny has been evaluated to analyze the changes
and the performance of the comapny in terms of the financial figures. More, the competition
analysis has also been done to find out the condition of the comapny in the market.
For this report, various tools and techniques have been analyzed. The CORE
approach of the company describes that the financial perf0rmance of the company in terms
of the internal and external phases are quite attractive and helping the company to manage
the activities, operations, functions and the performance of the company.
CORE approach:
“CORE” is an approach which has been invented by the Moon and Bates to analyze
the financial performance of a company. CORE approach of a company depict about the
performance of an organization in context of the various financial terms. CORE approach
depict that it becomes mandatory for an organization to evaluate its business with context of
the many terms so that a best result could be got and it becomes easy for the company to
manage the performance and make a better decision about the performance and the
position of the company. This approach assists the users to identify and understand the
competitive environment, it also assist the comapny to manage the performance of the
comapny itself (Hopper, Northcott & Scapens, 2007). In core approach, context of a
comapny, overview of the comapny, ratio analysis and evaluation of the company has been
evaluated so that the best analysis could be done over the comapny. The CORE approach
study has been conducted over the MARSHAL MOTOR HOLDINGS PLC to analyze and
evaluate the performance of the company in terms of various financial matters so that a best

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decision could be taken and strategy could be prepared accordingly. Following is the study
of the CORE approach of MARSHAL MOTOR HOLDINGS PLC:
Context:
Context is the first phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors.
Context is a study which is done over the internal and external phases of a comapny.
External context depicts about the commercial environment which surrounds over the
comapny whereas internal context depicts about the management and the organizational
level of a company (Hansen, Mowen and Guan, 2007).
The study over MARSHALL MOTOR PLC depict that the internal context of the
comapny is quite attractive, comapny is managing the business in a better way than other
companies in the industry. Further, it has been found that the company has changed the
various polices and strategies to manage the performance and the capital structure of the
company. From past trends, the current trends of the comapny are bit better and the current
investment in the comapny would offer the high return to the investing comapny.
At the same time, the external context of the comapny has been analyzed and it has
been found that the performance of the industry is quite attractive, economical condition of
the comapny has also become better right now (Hansen, Mowen & Madison, 2010). Further,
it has been found that the company has changed the various polices and strategies to
manage the performance and the capital structure according to the industry so that it could
attract the investors more.
Overview:
Overview is the second phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors.
Marshall Motor Holdings plc has registered itself in the London stock exchange. The
main functions and the activities of the company are the repairing and selling the various
commercial vehicles and the passenger’s vehicles in the international market. This comapny

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has 103 franchises which cover around 24 brands of the company and the business
operates its business across 25 countries and 28 sites (Home, 2017).
This company is performing very well in the market, the sales turnover of the
company has been analyzed and it has been found that the company’s turnover has been
enhanced by 54.08%. Further, it has also been found that the operating profit of the
comapny has been rose by the 59.23%. The other evaluation and calculations of the
comapny is as follows:
Calculation of the increment
2016 2015
Sales 1899405000 1232761000 54.08%
Operating profit 29054000 18246000 59.23%
Earnings 17762000 11721000 51.54%
Dividend payment 3251000 15448000 -78.96%
Market
capitalization 145638000 129884000 12.13%
Operating cash flow 80309000 25493000 215.02%
Capital expenditure 40754000 -2169000
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1978.93%
Debt increment 85444000 28642000 198.32%
(Garrison, Noreen, Brewer and McGowan, 2010)
This table depicts that the performance of the comapny has became way better than
the last year.
Ratio:
Ratio is the third phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors
Further, the study over the ratio analysis has been done to analyze the financial
strength position and the condition of the company. In this study, the analysis has been done
over the various position of the company such as liquidity ratios, profitability ratios, solvency
ratios and the efficiency ratios (Bhimani et al, 2008).
The evaluation of the ratio depicts that the profitability position of the comapny has
became better than the last year. In 2016, the comapny has earned more return on equity.
Further, the liquidity ratios of the comapny depict that the position of the comapny to pay the
debt has became lower in 2016 rather than the last year. This depict that the company is