ASSIGNMENT ON WHAT IS FINANCIAL MANAGEMENT.

Running Head: FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT
Name of the Student
Name of the University
Author Note

1FINANCIAL MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Profile of Imperial Brands Plc and British American Tobacco Plc...........................................2
Ratio Analysis............................................................................................................................3
Operating Profit Margin Ratio...................................................................................................3
Return on Capital Employed......................................................................................................4
Earnings per Share.....................................................................................................................5
Conclusion..................................................................................................................................6
Reference....................................................................................................................................7

2FINANCIAL MANAGEMENT
Introduction
Financial analysis is the aspect of finance function of business, which is consists of
examining the historical data in order to gain information about the future as well as current
financial health of the organization. The financial analysis can be applied in extensive set of
the circumstances for giving managers of business the information, which they require for
making critical decisions (Minnis and Sutherland 2017). Hence, this assignment aims to
critically analyze profitability of Imperial Brands Plc and comparison will be done with Peer
Company that is British American Tobacco Plc. Further, for analyzing profitability three
ratios will be calculated for 2017-2018.
Profile of Imperial Brands Plc and British American Tobacco Plc
Profile of IB
IB is largest international tobacco company and prominent tobacco manufacturer
products such as Player, snuff, Embassy cigarettes, different cigars brands, tubes and rolling
papers. It is London based company that was founded in 1901. It produces and distributes
number of the other products such as beer and prepared foods. The net revenue of company is
£7.7 bn and has operating margin of 46%. The employees of company are around 36,000 and
its product is in more than 160 countries (Imperialbrandsplc.com. 2019).
Profile of BAT
BAT is the British multinational tobacco and cigarette manufacturing organization of
America that is headquartered in London. It is world’s second-largest biggest marker of
cigarette. It has the market leading position in around 50 countries and its operations is in
around 180 countries. It operates in Tobacco industry and is traded in New York Stock
Exchange (Bat.com. 2019).