This report provides a comprehensive financial analysis of Greggs PLC and Tekna Electronics. It begins with a detailed calculation of various financial ratios for Greggs PLC, including operating profit, gross profit, net profit, current, acid test, fixed assets turnover, gearing, interest cover, ROCE, and inventory turnover ratios, along with related calculations for settlement periods. The report then moves on to a case study for Tekna Electronics, evaluating capital budgeting techniques for selecting new production machinery. This includes calculations for accounting rate of return, payback period, net present value (NPV), and internal rate of return (IRR) for three different machines. Furthermore, the report addresses the preparation of a cash budget for Tekna Electronics and concludes with a discussion on interpreting the calculated ratios and explaining different types of budgets, recommending the most suitable budgeting plan for Tekna Electronics based on its specific needs and industry dynamics. The report emphasizes the importance of financial ratios in decision-making and the selection of appropriate budgeting methods for effective resource management.
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