Accounting and Finance for Managers Report: Analysis

This report analyzes the financial performance of three leading food companies: Green-Core Group, Hilton Food Group, and Premier Food Group. It examines financial and non-financial ratios, including ROE, ROCE, profit margin, and net asset turnover, over a three-year period (2018-2020). The report compares the companies' performance based on these ratios, assessing their efficiency, profitability, and financial stability. It discusses the current ratio, collection period, and gearing, providing insights into each company's strengths and weaknesses. The analysis also touches upon the importance of financial resources for organizational success, including equity financing. The conclusion highlights Green-Core's efficient management based on cash flows and investment potential. The report provides valuable insights into financial management practices within the food industry and offers a comparative analysis of the three companies' financial health.

Accounting and Finance for managers

Contents
INTRO DUCTION..........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Section - A...............................................................................................................................................3
Section-B.................................................................................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRO DUCTION
This research analyses the ongoing success of the three leading firms that are the leading food
item, the Green Core Group, the Hilton Food Group, the organization that provides consumers
with its most rewarding services, rendering them top in the industry, and two manufactures
alternative goods, the Hilton Food Group and the Premier Food Group. They can evaluate the
ratios between the businesses with the aid of this study so that we can validate the organization's
income and also how they expect to reach their goal in the sector (Mburayi and Wall, 2018).
Each company has different methods to accomplish its goals and execute its mission accordingly,
but this study is undertaken to evaluate which organization is performing better relative to other
organizations.
MAIN BODY
Section - A
Hilton food group plc: It is a UK-based meat processing company founded in 1994 and suppliers
its products to the global food industry. Sweden, central Europe, Denmark and Australia are the
segments in which it works. The Hilton foodstuff is among the strongest competitive on the
industry and provides the consumers with decent services, that allows the corporation's industry
profit the higher its sales volume rises, the more its benefit on the market increases. Hilton food
groups are still seeking to please their customers by supplying them to quality solutions that
enable them build product quality if the consumer is pleased with the organization's employees
they will recommend the business to friends and family, which will ultimately boost market
share and benefit from the business.
Premier food group plc: It provides the consumer with a high variety of food items that are
excellent in flavor and labeling. Compared to the Hilton food group, its special selling
preposition makes it distinct from others, the leading foodstuff is more preferred by customers,
while it sells alternative products, however with decent packaging and pricing, it draws the
consumer on the marketplace, making every attempt to make its goods in competition
(Fernandez, 2019). The Premier food group partners with major brands it a famous name on the
marketplace. And the nature of the commodity they are using will be interpreted by citizens. In

order to improve the organization's share of the market and to encourage more people to contact
the organization.
Green-Core food group plc: Every enterprise needs to make benefit from the goods it sells on the
market in order to improve its profits and cope with the business of its rival by selling these
products by improving it with other characteristics such as good packaging, fresh juice by
placing offer on it such as buying one get one that attracts buyers and it is easy to sell
merchandise. Any methods must be designed according to which business will gain benefit in
order to hit the target organization. It comprises of foods which is special in flavor and
packaging, such as burgers, sandwiches, sauce etc. For the sale of products, packaging plays a
vital role since consumers are only drawn to the package after the flavor. If the product is nice
and enticing, the buyer would be drawn and sales will be improved. It is a better company in the
industry relative to the Hilton food item as well as the premier food item.
Financial and non-financial ratios:
GREENCORE GROUP PLC 28-03-2020 30-03-2019 31-03-2018
ROE using Net income (%) 34.66 4.55 1.72
ROCE using Net income (%) 19.12 4.8 2.58
Profit margin (%) 7.48 0.75 0.53
Gross margin (%) 33.84 30.23 31.12
EBIT margin (%) 6.73 2.04 1.84
Collection period (days) 26 34 30
Credit period (days) 54 50 47
Current ratio (x) 0.69 2.01 0.75
Gearing (%) 156.67 90.47 119.39
Net assets turnover (x) 2.06 1.81 1.49

Table 1: Financial Ratios for Green-core Group PLC
Non-financial ratios 28-03-2020 30-03-2019 31-03-2018
Shareholders’ funds per employee
(th)
26 64 58
Total assets per employee (th) 100 173 167
Table 1: Non-Financial Ratios for Green-core PLC
HILTON FOOD GROUP PLC 28-03-2020 30-03-2019 31-03-2018
ROE using Net income (%) 17.23 17.95 15.2
∟ ROCE using Net income (%) 9.02 11.98 12.43
Profit margin (%) 2.38 2.63 2.52
∟ Gross margin (%) 16.17 12.69 11.93
EBIT margin (%) 3.08 2.8 2.58
Collection period (days) 37 31 30
∟ Credit period (days) 54 50 47
Current ratio (x) 1.05 1.23 1.2
Gearing (%) 175.87 66.57 36.16

Net assets turnover (x) 3.58 5.56 6.53
Non-financial ratios 28-03-2020 30-03-2019 31-03-2018
Shareholders’ funds per employee (th) 38 38 44
Total assets per employee (th) 181 121 116
Table 1: Financial and Non-Financial Ratios for Hilton Food Group
PREMIER FOODS PLC 28-03-2020 30-03-2019 31-03-2018
ROE using Net income (%) 2.77 -3.51 0.76
ROCE using Net income (%) 3.37 1.16 2.94
Profit margin (%) 6.33 -5.18 2.55
∟ Gross margin (%) 40.94 44.12 40.42
EBIT margin (%) 11.25 0.55 8.48
Collection period (days) 27 29 24
∟ Credit period (days) 65 65 59
Current ratio (x) 0.98 0.78 0.78
Gearing (%) 64.91 105.83 106.9
Net assets turnover (x) 0.32 0.42 0.42

Non-financial ratios 28-03-2020 30-03-2019 31-03-2018
Shareholders’ funds per
employee (th)
404 230 234
Total assets per employee (th) 729 533 540
Table 1: Financial and Non-Financial Ratios for Premier Food PLC
CURRENT RATIO
The desired current ratio of an enterprise should be 2 that the corporation must retain, but this
was not accomplished by the Hilton food item and premier food item due of vibrant political
regulation on the marketplace, but whilst doing the successful profit mostly on industry in 2019,
the green-core food item has accomplished it. If the organization is economically solid, the
current ratio indicates the status of the organization, so it can comfortably sustain the current
ratio.
COLLECTION PERIOD
Essentially, it is also the time span wherein the company receives the sum held by the
consumers. The enterprise must have an acceptable collecting time to avoid disrupting the
financial performance of the company (Han, Pan and Shi, 2018). Especially in comparison to the
Hilton food group, the premier food group does have its turnaround smaller over the fair
recruitment; the Hilton food group has the potential to keep the debt holders for prolonged
duration. In the green-core food item, the decline in turnovers is observed in 2020 as opposed to
2019.
ROCE
It is ultimately used to calculate the organization's ability to use its resources to gain profit,
allowing managers to evaluate how effectively it uses its capital, helping investors to decide
whether to spend the money due to the company's viability, as opposed to other two companies,

the leading foodstuff is wasteful in its activity, which contributed to it becoming wasteful. In the
Hilton food group, a drop in the proportion of 2.96 percent was observed in 2020.
NET PROFIT MARGIN
As per the study of the repeated market place of the Hilton food company over the past 3 years,
the net margin of the luxury food group has declined by -5.18 percent. Development in the
green-core food category in 2020 with excellent strength is seen in contrast to 2019.
NET ASSET TURNOVER RATIO
As per the aforementioned review, it was inferred that due to the low percentage of properties,
the Premier food company struggled to produce working capital; it also possessed the financial
advisory unit inside the low time period and at cheap price.
ROE USING NET INCOME (%)
As per the study, it is noted that the leading food group runs low compared to 2 certain entities,
but at the other side, the Hilton foodstuff and the green-core food group, as they've shown
competitiveness in 2019-2020 and gained benefit in the good position as a result since 2019, but
they have used their capital appropriately so that their targets can be accomplished (Alqatamin,
2018).
EBIT
The Hilton food group has seen its quarterly profits in 2019-2020 according to the report, while
the premiere food group as well as the green-core food item has been getting short, affect results
from 2019-2020.
TOTAL ASSETS PER EMPLOYEE
As per the report, it is noted that, relative to the other Hilton food group and green-core food
item, the premier food group seems to have more workers allocated, which would help sustain
the firm's earnings stability through offering decent facilities mostly on sector.
CREDIT PERIOD

But at the other side, as per the study, the payout mechanism of the Hilton food group as well as
the green core food group is close to reaching the credit obligations, which entail a long time
period for the premier food group (Smith and Urquhart, 2018).
GROSS MARGIN
As contrasted to the premiere food item as well as green-core food item, the Hilton foodstuff has
same profitability on the market in relation to the premiere food group and green-core food item
that also enables to maximize the wealth.
SHAREHOLDER FUND PER EMPLOYEE
According to the assessment, especially in comparison to the Hilton food group and the green-
core food item, the leading food group investor finance is three times
On the basis of the above results and findings, it can be concluded that Green-Core has by far the
most efficient management amongst the organizations. Due to their cash flows and money pay
out framework, the system is considered to be most consistent from of the investor's perspective.
Investment inducement refers to situations whereby, inside the norms of a given marketplace,
every commodity has better odds of optimizing its profits (BAMA, 2019). A theoretical
approach is mandatory in order to create an overview for any theoretical model, and then the
same lives revolve throughout the given scenario from around presumption that reasonable
market opportunity is not in play throughout the situation. The latent notion of income for any
organization revolves from around institution's knowledge of the methods of fund systems and
distribution. It can be reached the conclusion that the Green-Core group has higher potential
involved in the acquisition of financial resources inside the marketplace, taking the above data
into account.
Section-B
It is important for the organization to guarantee a goof inflow of money in order to sustain plan
in place on any institution's organizational effectiveness. Regardless of sort, in order to ensure
organizational contingency, any company needs a decent inflow of money (Jamil and Seman,
2019). The purchase of these financial resources could be conducted separately using several
references or an accretion of such outlets, such as lengthy loans from other organizations,

reputable business statements, seeking funding using the wider populace for which earnings must
be given by any institution. A collection of multiple variables depends on the specific cap in
which any company needs to acquire resources as well as giving out dividend. The corporation
must raise funds taking into account their desires and after estimating the dividends they would
achieve in the post time frames. The organization also has to retain a portion of its income in
relation to that. To keep that specific investor energized for effective conversations, the share
price and returns on any capital expenditure should be enough. In addition, in order to obtain
funds from the common person, the organization can also adopt the attitude of fundraising. But
to do so, in the global market in which they operate, the organization needs to have excellent
legitimacy and responsibility. Only after obtaining the help of the common stockholders can this
method be used as it allows the decentralization of authority in the judgment procedure.
It is possible to classify the financial resources for Premier Food Group, Green-Core Food Group
and Hilton Food Group as continues to follow:
Equity financing: It is regarded to be a method where organizations use the sale of profitable
shares to generate cash. An organization that adopts this research methods in required to finance
for its brief objectives and when an institution plans to acquire long-term opportunities. These
share prices give shareholders the authority to take part in the institution's choice procedure
(Atrill and Lindley, 2019). These equity investors can claim worth of assets the quantity they
have decided to invest in the institution and during moment of the disintegration of that specific
organization. For instance, if a stockholder has gets to share worth USD 6, 00,000, they are
compelled to claim the capabilities of the company at the time of the disintegration of the
institution for the same quantity. In a particularly affected, the problem of share capital is carried
out as it allows the decentralization of control from the hands of common stockholders. And it
was only after the authorization of post stockholders that share capital can be approved.
Debt Financing- This method is used when a company recognizes funds through using notes,
bonds and successful bills for its operating expenses. These cash flows may be approved for
reselling or financial reasons to people and to investment banks who may acquire them. In return
for the financial resources, investors, i.e. individuals or investment firms, become shareholders
and are compelled, together with benefit, to pay back the principal level of debt.

Term loan - This technique involves the acquisition of longer or shorter bank loans or investment
groups. In addition to the present value, the interest amount that the company will have to pay is
correlated with these lenders (Jones, Kovner and Mose, 2018). In financial dealings, when it
comes to real estate growth or machine tools acquisition or writing off, these factors are loans 25
years long. Small-scale organizations typically use this technique when it comes to acquiring
working capital. This method for supporting businesses in this way was developed by investment
banks around the world.
Retained earnings- For any institution, this is a money generated by effectively using the funds
they have obtained from of the community on its own. Its concept is suggested by the phrase
maintained going to earn. It is the component of trying to earn that the company retains after
distributing the tax to the government (Clikeman, 2018). After taking into consideration many
variables, such as shareholders, the integrity and responsibility of the organization. The main
purpose and the long term acquirement of debt and equity capital, any institution has to set the
amount of capital gains. This method is used to take all the complexities into account. At the end
of the year, the institution has to distribute sufficient dividend payouts to improve the future
purchase of debt or equity. This is the contribution of revenue that, after offering out earnings
and having to pay all the organization's creditors, stays in the corporation's hands.
CONCLUSION
The study states that an overview for the effective performance of an enterprise is set out by the
accrued units that collate and form company financial reporting. The organization's overall
stabilization of an institution dependent on the selection of resources inside the institution itself,
and the lack of leadership funds also can affect the organization's efficiency and productivity,
making it susceptible to price risk. The manager is responsible for using effective surveillance
methods in order to maintain a gaze on the overall financial resources of the institution and
create strategies the plan of action in a way that post-organization spending is sufficient.

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