Royal Docks: Financial Analysis Report on Chapel Down (AC5005)

This report presents a financial analysis of Chapel Down, a UK-listed company in the alcohol industry. The analysis focuses on assessing the company's performance using various financial ratios, including profitability ratios like Return on Capital Employed (ROCE), Gross Profit Margin, and Operating Profit Margin, as well as liquidity ratios such as the Current Ratio, Acid Test Ratio, and Inventory Turnover Ratio. The report compares the company's financial performance over three years (2016-2018), highlighting trends and providing interpretations of the calculated ratios. The student has also calculated Earnings per Share (EPS) and Price Earnings (P/E) ratios. The report also includes a discussion of the advantages and disadvantages of using financial ratios, sources of finance for Chapel Down, and an auditor's report. The analysis aims to provide insights into the company's financial health and make recommendations based on the findings. The report also includes a copy of the financial statement, comparative ratios and trend analyses, as required by the assignment brief.