Accounting and Finance for Managers Report: Company Analysis

This report provides a comprehensive financial analysis of three companies: Green-Core Group, Hilton Food Group, and Premier Food Group, all operating within the same economy. The analysis begins with an introduction outlining the report's objectives, followed by a detailed examination of the companies' strategies, objectives, and strengths. Section A focuses on ratio analysis, including Return on Equity (ROE), Return on Capital Employed (ROCE), Net Profit Margin, Gross Margin, Earnings Before Interest and Taxes (EBIT), collection period, credit period, current ratio, net assets turnover ratio, shareholder fund per employee, and total assets per employee. Section B delves into various financing methods, including retained earnings, equity financing, and debt financing, with a discussion of term loans and revolving loans. The report concludes with a summary of findings and insights into the financial performance and investment potential of the companies, offering a comparative perspective on their strengths and weaknesses. The report also discusses how different financing methods impact stakeholders.

Accounting
and
Finance for Managers

Contents
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
SECTION B...................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
This report analyses a detailed review and appraisal of three companies: the company of the
Green-Core group, the Hilton Food Group and the Premier Food Group, both of which belong to
the very same economy and are main competitor (McLaney and Atrill, 2016). The ratio analysis
and development direction, aims and objectives of these undertakings are found from the very
first portion, while the second section discusses all multiple methods of lengthier financing.
SECTION A
1a.
Green core Group Plc: In an increasing food market, the company's desire to boost competition
relies on two biggest parts: widening its consumer offering and motivating consumers to buy
more. The strategy of the company is to further reinforce our relevance to our buyers by pushing
income through a shared supply chain, increasing value across their portfolios, along with doing
more for clients. The accomplishment of the organization business aim depends on four major
strengths: home cooked meals, power people, Green core honesty and firm's performance. The
execution of this plan involves a broad and knowledgeable organisation called Green core,
undergirded by a shared dedication and doing company.
Hilton Food Group Plc: For a long time the business has been a lively company with high
expectations. The brand growth for success is what draws its clients. But their faith in lengthier
alliances has powered their rise in multinationals (Loughran and McDonald, 2016). The
company's responsibility is to help that now the company's corporate partners exceed their rivals.
The company’s objective as a corporation is Absolute Coordination. Business's devotion,
engagement and desire to do whatever it can to make its workers succeed. One job, one intent,
one shared aim. Managerial personnel are in the core of everything the company does. Corporate
ethnic background was always distinct and important. The company's principles describe the
ways in which they think of themselves first an entity and how they behave as individuals.
Business staff based on common principles and established strategies, act as relationships
alliances.
Premier Foods Plc: The company purpose guarantees them the delicious food which our
corporate clients want, food that is nutritious, easy to cook and comes in multiple forms, what
they're about to do anyway. That is why clients see their products in nearly 94% of the overall

part of the British households. The firm promotes big brands and excellent prices, and its
purpose is to show why the nutrition agency is at the heart of how a collaborator does it
successfully. The organisation is focused on building a genuinely stunning operational site. The
organization's mutual principles provide workers with a collective decision-making process and
serve to motivate them throughout the manner in which they do jobs, as well as force one another
to incorporate them into everyday operations. Over the last 3 years, substantial development has
been accomplished in integrating the corporation's principles and priorities within the
organisation, growing development in collaboration and communication with employees.
1b
Financial and non-financial ratios:

ROE using Net income (%)-
Analyses- According to the aforementioned table, it can be observed that in 2019 and 2020
figures, the return on earnings in the form of Green core has improved. This means that there is a
significant improvement in the productivity of the aforementioned company that produces
returns (Thomson, 2017). On the other hand, the Hilton Business success was stable in the years
2019 and 2020, suggesting that they managed to achieve respectable equity yields. It can be
measured in the Premier Food Business sense that the productivity of the Premier Food
Corporation will be too poor compared to all of that of other businesses.
ROCE (%)

Analysis- As per the aforementioned figures and chart, it was found that, relative to other firms,
Green Core offers a better profitability ratio, which is about 19.12 percent. With only one
exception of some Hilton Business ratio decreased by about 2.96 percent in the period-2020. The
efficiency of Premier Business is inefficient relative to other firms, relating with the above
proportion, and this is attributed to increased capital expenditures.
Net profit margin:
Analyses: Far as the Green-Core Business begins to grow, it may be confirmed that their
effectiveness during the year 2020 relative to year 2019 has been improved by a considerable
amount. In comparison, owing to higher prices, Premier Food had adverse operating revenue of
around -5.18 percent. It would be a nice condition, despite the increasing success of this Hilton
Food Manufacturer during those 3 years.
Gross margin-
Analyses: In all three years, Green Core business and Premier Fast food chain had same
productivity. Like Premier Food Manufacturer, in a similar manner, it's stronger off than other
businesses. In the other hand, relative to all firms, the performances of Hilton’s food
manufacturer are weak. This is due to the increased sales rates and dropping earnings.
EBIT-
Analyses/interpretation- Hilton Food Corporation is able to retain its profits on an annual basis
until the amount of constant depreciation and amortization demonstrates its growth (Feldman,
2017). Green Central Business and the Premier Food Corporation, but at the other side, observed
a steady decline over the period-2019 and sustainable production in-2020 as well.

Collection period:
Analyses- Premier Business may be claimed that it is successful in recovering the receivables
from other two companies within a shortened time span in view of the creditor’s payment period.
Although Hilton Food Company tries to reimburse its debtors for quite a bit longer. In fact,
Green Core Company has been able to decrease the turnaround time of trade debts over a
shortened duration in 2020 relative to 2019.
Credit period:
Analyses- Both Green Key Business and Hilton Fast Food chain have identical payout periods,
both under the same timeframe, clearing their legal and policy. Hilton Food Corporation takes
more time to meet its brief commitments.
Current ratio:
Analyses: In the above illustration, this may be it from the suggested current ratio generally
presumed to be 2 which Green Core plc only could maintain such a ratio in the year-2019 at this
level. Whereas other companies were reluctant to do so due to higher current obligations.
Net assets turnover ratio
Analysis- This can be seen on the basis of the above map that the Hilton Food Group business
has a healthier combination as this is prepared to handle its assets with much less timeline and
cost (Zhu, Zhang and Yu, 2017). Although Premier nutrition has a lower proportion, its states
that its cash cannot be regulated by the firm.
Shareholder fund per employee-
Analysis: There is a big gap between two firms, since Premier Food Group has strong recruiting
funds which are almost 3 times higher than the majority of these two companies.

Total assets per employee-
Analysis- Also however there is a substantial gap between the two firms and there are enough
staff reserves in the prime food manufacturer as well as about five times more than the majority
of two companies.

1 c
This can be claimed, on the grounds of the above-mentioned financial review of all three firms,
that the Green-Core Seller Knows ranks best in terms of performance. As it is built to produce
more income and dividends in an optimised fashion, this sector has the biggest investment
potential.
Investment enticement is a situation where the buyer has the potential to benefit something that
has the likelihood of gain except for chance (De Villiers, Venter and Hsiao, 2017). The secret to
creating wealth by functioning is to understand the advantages of, and how to handle, money.
Here the Green Core Ecosystem offers better investment opportunities for consumers as the
business will produce greater yields in years to come.
SECTION B
2a
In fact, the term "internal data via which finances are produced by economic system the very
ongoing existence of finance. These are borrowing/lending or capital initially determined by a
business as opposed to financing, such as loans issued by financial entities as various
environment. The financial information channel is income generation, investment/asset
disposition and comprehensive handling of cash flow funds. Any of the internal organizational
lengthier resources are available to businesses in this sense:
Retained earnings: Deferred revenue listed on financial statements are known as an inherent
financial source for corporations on the sole basis that they will be an institution's final income.
Retained earnings can be described as income that remains after distributions have been paid to
the shareholders or shareholders of the stock (Kim, Schmidgall and Damitio, 2017). Interest
income, aside from lengthier rentals and obligations, are a lengthier source of corporate
financing where no mandatory maturity occurs. Earnings, like loaned funds, are often not
characterised by a fixed obligation on annual fees or repayment period.
Equity financing- In order to get more money, equity investment applies to the selling of sample
weight. Shareholders who buy stocks will also buy the business's voting rights. Selling of all fair
value, such as ordinary shares, new stock, equity options, etc., may relate to equity capital. A
business may face any need for extra funds in order to expand, which it will seek to acquire in
one of 2 directions: debt and equity. Equity finance entails selling the remaining value and

offering buyers a share of the business entity in return for cash. The percentage of the business to
be offered in equity finance depends on how far the investor has spent in the business at the end
of the funding and what that expenditure is valued. An investor who spends $600,000 in the
begin of a firm; for instance, will eventually own all of the remaining stock.
Debt financing- Debt funding happens as a company raises funds through the sale of debt
securities to individuals and/or investment firms for cash flow or capital spending. The persons
or entities become borrowers in exchange for loaning money, and obtain a guarantee that the
principle and interests on the loan will be returned. It can require 3 ways to secure funds when a
corporation wants funds by funding: capital, borrowing, or a combination of the two. Equity
reflects a portion of shares of the company. It offers a claim on potential profits to the investor,
so it does not have to be repaid in full. Equity investors are the second in line to earn
compensation if the business goes bust. The other path is debt finance, where a business raises
money through debt issuance.
Term loan- A term mortgage is a type from a lender with a defined maturity period for a
particular amount or maybe a concessionary interest level. For an existing small company with
solid financial reports, a loan rate is also suitable (Salas and Campos, 2016). In addition, to
decrease the interest sums and the overall cost of the mortgage, a loan rate can include a large
lump sum. In business financing, a revolving loan is normally between and one 25 years for
machinery, property development, or system equipment written off. Sometimes a small company
uses the money from a revolving loan to buy capital assets for the manufacturing operation, such
as machinery or a new home. Any firms borrow the money they need through monthly
instalments to work. Most banks have developed term-loan programmes primarily to support
enterprises in this manner.
2b
Retained Earnings: The predominant popular method of lengthier funding is in all selected
companies. This makes it possible to use the remaining income of the company, although it has
certain consequences for the rights of existing stakeholder group’s persons. The below is a

comprehensive discussion in the sense about how this origin will influence the interests of all
parties in the case of the Green Core Group:
Stockholders or shareholders: the use of retained earnings would impact the investors' overall
equity as well as financial institutions' trust, as the retained earnings are normally intended to be
dispersed among existing managers.
Providers and lenders: the allocation of cash flows would impact the company's image with
creditors, as illustrated by the company's shortcomings in the current realistic situation.
Workers: residual benefit utilisation directly affects the company's funds assigned to each
employee (Cahan, 2016). Each individual employee reduced wealth can impact the performance
of the workforce of the financial success, which can lead to a rise in the size of employees left
unemployed.
CONCLUSION
From the aforementioned report, it has been expressed that elements of corporate finance play a
crucial role in any management of the company. Companies run on assets, and if management do
not own the funds, they do not have a direct market impact. Managers will monitor the flow in
resources and thus guide the course of operation by effectively paying for a company's profits
and expenditures.