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Royal Mail Performance and Brexit Impact

   

Added on  2020-01-16

14 Pages3235 Words161 Views
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INTERNATIONALFINANCE
Royal Mail Performance and Brexit Impact_1

Table of ContentsINTRODUCTION...........................................................................................................................3Background..................................................................................................................................3International financial statements................................................................................................4Sources of finance......................................................................................................................10Management strategy.................................................................................................................11Financial comparisons...............................................................................................................11Capital structure theory..............................................................................................................11Dividend policy..........................................................................................................................11International effects on the business decisions..........................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONRole of an entity gets increases by using various sources of finance in order to expand thecurrent market share. Royal mail has been selected for the given project report in whichimportant finance has explained by determining its current performance through ratio analysis.This report stresses on introducing capital structure theory and dividend policy should adopt byan entity.BackgroundRoyal mail Plc is selected for the given project which deals in providing postal servicesto variety of customers locate in the external business environment. This is public limitedcompany established with the support of the government of the United Kingdom in order tofacilitate different kinds of customers by offering variety of postal related services. Royal mailUK is a group which includes several brands operated under the name of this particular groupsuch as Royal mail and parcel-force systems in order to deliver parcels of the customers to theirrelatives or friends (Gilpin, 2016). This is an important international logistics company deals inproviding postal related services in order to create a good chain of communication amongdifferent customers which can be normal individuals or business corporate who deliver importantinformation from one medium to another in achieving their desired aims and the objectives. Thiskind of company offers mail collection services and parcel delivery services all over the UK tofacilitate its variety of customers exists in the UK. This entity is registered with recognize stockexchange that is London stock exchange with the FTSE 100 constituent indexes. There isminimal share of 30% stake of the government in the royal mail which helps an entity in order toimprove the overall performance of an entity in the external business environment.FedEx is another important organization located in the United Kingdom exists in thesame logistics industry in order to deliver parcels and mail in all across the world. The deficiencyof Royal mail is that it delivers all kinds of postal services throughout the UK bit thisorganization extends its overall market by expanding its external market share in order to grabhigher market advantage in achieving desired aims and the objectives within a give period. Thedesired aim of the business is to accomplish all the aims and targets in less amount of time.Timely delivery of all the parcel is the unique feature of an entity.
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International financial statementsFinancial statements prepared by an entity in order to ascertain the financial performanceof an entity as desired aim's and the objectives of the business concern is bet all the externalmarket customers by offering all kinds of services in order to grab higher market advantage.International financial statements prepared by an entity by following international reportingstandards in order to comply all the external market regulations in improving currentperformance of an entity within a given period. Role of IFRS has increases with the increasingexternal market complexities which imposes burden on an entity in adopting different rules andregulations in considering all the external market changes in the business of an entity. With theincreasing trend of globalization, various accounting standards need to be adopt by an entity inorder to increase the reliability and understanding of all the financial information included indifferent financial statements prepared by an entity (Gallizo, Moreno and Salvador, 2016). Booksof accounts prepared by an entity according to all the accounting standards which improves theoverall financial accuracy of all the information included in the financial transactions in order tograb higher market advantage in the external business environment which is essential in order toadopt various IAS in uplifting current business conditions of an entity. International accountingstandards committee come into existence in order to test the ability of an entity in consideringexternal market changes in the existing business performance of an enterprise.Financial ratiosParticularsFormula20152016Profitability ratiosRoyal MailFed ExRoyal MailFed ExNet sales932847453925150365GP932830469925133038GP ratioGP/Netsales*100100.00%64.21%100.00%65.60%NP3251050£241.001818NP ratioNP/Netsales*1003.48%2.21%2.61%3.61%
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