Comprehensive Financial Analysis Report: Marshall Motor Holdings PLC

This project report conducts a comprehensive financial analysis of Marshall Motor Holdings PLC, utilizing the CORE approach (Context, Overview, Ratio Analysis, and Evaluation) to assess the company's financial health and performance. The report examines the internal and external contexts affecting the company, providing an overview of its operations, including its market position and key performance indicators such as sales and operating profit. Ratio analysis, encompassing liquidity, profitability, solvency, and efficiency ratios, is performed to evaluate the company's financial strengths and weaknesses over several years. The evaluation phase synthesizes the findings, offering insights into the company's competitive landscape, market position, and overall financial stability. The report concludes with an assessment of the company's current financial standing and future prospects, offering valuable information for investors and stakeholders. The analysis includes competitor analysis to find out the condition of the comapny in the market. For this report, MARSHAL MOTOR HOLDINGS PLC has been taken into the concern and the above evaluation method has been performed over this company.

Running Head: Accounting and financial management
1
Project Report: Accounting and financial management

Accounting and financial management 2
Executive Summary:
This report has been prepared to analyze the financial performance of a company. In
this report, CORE approach (context performance, overview of the comapny, ratio analysis
and evaluation) has been done to evaluate the financial strength of the company. Further, the
financial statement of the comapny has been evaluated to analyze the changes and the
performance of the comapny in terms of the financial figures. More, the competition analysis
has also been done to find out the condition of the comapny in the market. For this report,
MARSHAL MOTOR HOLDINGS PLC has been taken into the concern and the above
evaluation method has been performed over this company.

Accounting and financial management 3
Contents
Part A................................................................................................................................4
Introduction.................................................................................................................4
CORE approach.........................................................................................................4
Financial performance...............................................................................................8
Market position...........................................................................................................9
Competitor analysis.................................................................................................10
Conclusion.................................................................................................................12
Part B1 Fido’s Frisbees...................................................................................................13
Case B1...........................................................................................................................13
Introduction...............................................................................................................13
Profit of the company...............................................................................................13
Breakeven perspective............................................................................................13
Cash flow forecast...................................................................................................14
Recommendation and conclusion.........................................................................14
References.......................................................................................................................15
Appendix.........................................................................................................................17

Accounting and financial management 4
Part A
Introduction:
This report has been prepared to analyze the performance of the Marshall Motor plc.
This report depicts the user about the various position of the company which could be used
by the user while making a decision about making the investment into the company. This
report has been prepared over the company through taking the concern of various tools and
techniques so that the performance could be measured in a perfect manner and a good
result could be offered to the top level management of the company to make a better
decisions about the performance of the company and make the strategies on the basis of
that (horngren, 2009).
In this report, CORE approach (context performance, overview of the comapny, ratio
analysis and evaluation) has been done to evaluate the financial strength of the company.
Further, the financial statement of the comapny has been evaluated to analyze the changes
and the performance of the comapny in terms of the financial figures. More, the competition
analysis has also been done to find out the condition of the comapny in the market.
For this report, various tools and techniques have been analyzed. The CORE
approach of the company describes that the financial perf0rmance of the company in terms
of the internal and external phases are quite attractive and helping the company to manage
the activities, operations, functions and the performance of the company.
CORE approach:
“CORE” is an approach which has been invented by the Moon and Bates to analyze
the financial performance of a company. CORE approach of a company depict about the
performance of an organization in context of the various financial terms. CORE approach
depict that it becomes mandatory for an organization to evaluate its business with context of
the many terms so that a best result could be got and it becomes easy for the company to
manage the performance and make a better decision about the performance and the
position of the company. This approach assists the users to identify and understand the
competitive environment, it also assist the comapny to manage the performance of the
comapny itself (Hopper, Northcott & Scapens, 2007). In core approach, context of a
comapny, overview of the comapny, ratio analysis and evaluation of the company has been
evaluated so that the best analysis could be done over the comapny. The CORE approach
study has been conducted over the MARSHAL MOTOR HOLDINGS PLC to analyze and
evaluate the performance of the company in terms of various financial matters so that a best

Accounting and financial management 5
decision could be taken and strategy could be prepared accordingly. Following is the study
of the CORE approach of MARSHAL MOTOR HOLDINGS PLC:
Context:
Context is the first phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors.
Context is a study which is done over the internal and external phases of a comapny.
External context depicts about the commercial environment which surrounds over the
comapny whereas internal context depicts about the management and the organizational
level of a company (Hansen, Mowen and Guan, 2007).
The study over MARSHALL MOTOR PLC depict that the internal context of the
comapny is quite attractive, comapny is managing the business in a better way than other
companies in the industry. Further, it has been found that the company has changed the
various polices and strategies to manage the performance and the capital structure of the
company. From past trends, the current trends of the comapny are bit better and the current
investment in the comapny would offer the high return to the investing comapny.
At the same time, the external context of the comapny has been analyzed and it has
been found that the performance of the industry is quite attractive, economical condition of
the comapny has also become better right now (Hansen, Mowen & Madison, 2010). Further,
it has been found that the company has changed the various polices and strategies to
manage the performance and the capital structure according to the industry so that it could
attract the investors more.
Overview:
Overview is the second phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors.
Marshall Motor Holdings plc has registered itself in the London stock exchange. The
main functions and the activities of the company are the repairing and selling the various
commercial vehicles and the passenger’s vehicles in the international market. This comapny

Accounting and financial management 6
has 103 franchises which cover around 24 brands of the company and the business
operates its business across 25 countries and 28 sites (Home, 2017).
This company is performing very well in the market, the sales turnover of the
company has been analyzed and it has been found that the company’s turnover has been
enhanced by 54.08%. Further, it has also been found that the operating profit of the
comapny has been rose by the 59.23%. The other evaluation and calculations of the
comapny is as follows:
Calculation of the increment
2016 2015
Sales 1899405000 1232761000 54.08%
Operating profit 29054000 18246000 59.23%
Earnings 17762000 11721000 51.54%
Dividend payment 3251000 15448000 -78.96%
Market
capitalization 145638000 129884000 12.13%
Operating cash flow 80309000 25493000 215.02%
Capital expenditure 40754000 -2169000
-
1978.93%
Debt increment 85444000 28642000 198.32%
(Garrison, Noreen, Brewer and McGowan, 2010)
This table depicts that the performance of the comapny has became way better than
the last year.
Ratio:
Ratio is the third phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors
Further, the study over the ratio analysis has been done to analyze the financial
strength position and the condition of the company. In this study, the analysis has been done
over the various position of the company such as liquidity ratios, profitability ratios, solvency
ratios and the efficiency ratios (Bhimani et al, 2008).
The evaluation of the ratio depicts that the profitability position of the comapny has
became better than the last year. In 2016, the comapny has earned more return on equity.
Further, the liquidity ratios of the comapny depict that the position of the comapny to pay the
debt has became lower in 2016 rather than the last year. This depict that the company is

Accounting and financial management 7
required to enhance the level of the current assets to manage the position to pay the short
term debts (Morningstar, 2017).
In addition, the efficiency ratios and the solvency position of the comapny has been
evaluated to reach over a conclusion. The efficiency and the capital structure of the
company has became better than the last 5 years which depict that the company is not
required to make the changes into the debt position and the collection and payment position.
The current position is quite better.
Descri
ption Formula Marshall Holdings plc
2016 2015 2014 2013 2012
Profita
bility
Net
margin
Net
profit/reve
nues 0.93% 0.95% 0.92% 0.82% 0.42%
Return
on
equity
Net
profit/Equit
y 12.19% 9.02% 15.03% 12.74% 5.91%
Sales
employ
ee
Sales /
number of
employee 844180
Liquidi
ty
Current
ratio
Current
assets/cur
rent
liabilities 0.81 1.06 0.95 1.01 1.01
Quick
Ratio
Current
assets-
Inventory/
current
liabilities 0.16 0.23 0.30 0.37 0.30
Efficie
ncy
Receiv
ables
collecti
on
period
Receivabl
es/ Total
sales*365 16.27 11.31 23.63 29.08 19.89
Payabl
es
collecti
on
period
Payables/
Cost of
sales*365 108.12 71.29 84.22 80.60 66.99

Accounting and financial management 8
Asset
turnove
r ratio
Total
sales/
Total
assets 2.37 2.71 3.07 3.05 3.27
Solven
cy
Debt to
Equity
Ratio
Debt/
Equity 4.50 2.50 4.34 4.07 3.35
Debt to
assets
Debt/
Total
assets 0.82 0.71 0.81 0.80 0.77
Interest
cover
EBIT /
interest
expenses 9.73 12.87 13.37 10.52 5.90
Gearin
g ratio
Long term
liabilities /
capital
employed 0.22 0.24 0.31 0.37 0.37
Return
on
capital
employ
ed
Operating
profit /
total
assets -
current
liabilites 0.41 0.52 0.43 0.37 0.22
Evaluation:
Evaluation is the last phase of the CORE approach which depict about the various
phases of the company in terms of the finance. This study depict that how is the comapny
performing in the market. Further, various tools and techniques have been analyzed to
perform this study and reach over a conclusion so that the good decision could be made by
the management of the company and the investors
Lastly, the evaluation study has been performed over the company. Through the
above analysis, over the comapny, it has been found that the financial performance and
position of the company is currently enhancing and depicting about a better position of the
comapny in the market (DRURY, 2013).
The evaluation over the company depict that the company is not required to make
any changes into its financial figures, the only changes are required by the comapny is to
manage the liquid position of the comapny. Further, the other financial figures of the
comapny depict that the comapny is performing very well in context of the finance and it
would attract the investors more to make an investment into the comapny.
Financial performance:

Accounting and financial management 9
In addition, the study has been performed over the financial performance of the
comapny, through this analysis, it has been found that the position of the comapny has
became very well in the market in 2016 in comparison of its last years, through the study
over the financial statements of the comapny of last 5 years, it has been evaluated that the
company has performed way better in the last 5 years (Schlichting, 2013). The turnover of
the comapny has been enhanced from last 5 years by 181%. Further, the details of the
company depict that the changes which have been faced by the comapny express about the
positive changes and the performance of the company.
The additional study over the income statement of the company expresses that the
net income of the company has been enhanced on a great level from 2012 in 2016. The
changes expresses that it is a good option for the investing companies to make an
investment into this comapny for a long term to manage and enhance the worth of the
invested amount (London stock exchange, 2017).
The further study over the statement of the financial position of the company
expresses that the total assets and the total liabilities of the company has been enhanced on
a great level from 2012 in 2016 (Phillips and Stawarski, 2016). The changes expresses that
it is a good option for the investing companies to make an investment into this comapny for a
long term to manage and enhance the worth of the invested amount. The company has
managed the position in a great manner.
The additional study over the statement of the cash flow of the company expresses
that the cash flow position of the company has been better from 2012 in 2016. The changes
expresses that it is a good option for the investing companies to make an investment into
this comapny for a long term to manage and enhance the worth of the invested amount
(Madhura, 2014).
Market position:
Further, the market position of the company has been investigated to find out the
performance and the position of the company in the market. For this analysis, PESTLE has
been analyzed (Palicka, 2011). The PESTLE study of the company is as follows:
Political factor:
 Political stability and significance in
material and construction sector in
the economy
 Military invasion risk
Economical factor:
 Interest rate
 Inflation rate
 Discretionary rate

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 Corruption level
 Property protection
 Favoured trading partners
 Mandatory employee benefits
 Industry safety regulations
 Intellectual property protection
 Legal framework
 Week regulations in material and
construction
 Business cycle stage
 Labour cost and productivity
 Educational level
 Financial market efficiency
 Infrastructure quality in the company
and in the industry
 Comparative advantages
 Stability in the market
 Exchange rate fluctuations
Social Factor:
 Skill level of the pubic
 Demographics
 Leisure interest
 Culture
 Attitudes
 Class structure
 Hierarchy and power structure
 Broader nature of society and
entrepreneurial spirit
Technological factor:
 Various changes in the technology
 New development
 Technological diffusion
 Value chain structure impact
 Cost structure impact
 Impact over the product offering
 Service offering impact
From the above analysis, it has been found that various changes have taken place
into the position and the performance of the industry. The above factors impact over the
entire industry as whole and thus the company is required to look over these changes and
make a better decision accordingly.
Competitor analysis:
Further the competitive analysis of the company expresses that the main competitors
of the comapny is the LOOKER’S PLC. For the competitive analysis, porter’s 5 forces model
study has been performed over the MASHALL MOTOR HOLDIGS PLC. Michael has
observed that the five forces make an impact over the profitability position of the company.

Accounting and financial management 11
Threats of the new entrants:
Through the analysis, it has been found that the new entry in the material and
construction bring new ways and innovation in the industry and put pressure over the
MARSHALL PLC through lowering the cost and new value proposition in the customer.
Through this evaluation, it has been found that various changes have taken place into the
performance of the company and so that the threat of the company is bit higher.
Bargaining power of the supplier:
Further, through the analysis, it has been found that the material and construction
company buys its raw material from various sources which is also done by the MARSHALL
PLC and through which the company evaluates the supplier who offers the quality raw
material in lesser price. Through this evaluation, it has been found that various changes
have taken place into the performance of the company and currently the bargaining power of
the supplier is very less (Kinsky, 2011).
Bargaining power of buyers:
Further, through the analysis, it has been found that the only few companies are
there in the industry which are offering the automobile products and delivering the products
and MARSHALL PLC is also one of them companies and through which the company
evaluates the buyers are many and the suppliers are few. Through this evaluation, it has
been found that currently the position of the industry is changing and currently the bargaining
power of the buyer is very less due to few companies (Elton et al, 2009).

Accounting and financial management 12
Threat from substitute products:
Further, through the analysis, it has been found that the various subsidiary products
are there in the market which affects the product and services of the company such as direct
dealership from the manufacturing company. Through this evaluation, it has been found that
currently the position of the industry is changing and currently the threat from the substitute
products is quite higher.
Rivalry among the existing players:
Lastly, through the analysis, it has been found that various companies are there in
the industry such as Lookers’ plc which impact over the position of the MARSHALL PLC.
Through this evaluation, it has been found that the market share of the LOOKERS PLC is
better than the MARSHAL MOTOR HOLDINGS PLC limited. The financial statement and the
financial figures of the LOOKERS PLC depicts that it is the market leader in the comapny
(Morningstar, 2017). Currently the threat from the existing player to the company is also
higher.
Conclusion:
To conclude, CORE approach (context performance, overview of the comapny, ratio
analysis and evaluation) has been done to evaluate the financial strength of the company.
The context depict that the comapny is internally and externally quite string to manage all the
activities and functions of the company. The overview of the comapny in terms of finance
depict that the performance of this company has became very god than 012 in 2016. These
changes have helped the company to grab more opportunities.
In addition, ratio analysis study has also been performed over the comapny and it
has been found that comapny in enough strong in terms of profitability, capital structure and
solvency position. Further, the financial statement of the comapny has been evaluated to
analyze the changes and the performance of the comapny in terms of the financial figures.
More, the competition analysis has also been done to find out the condition of the comapny
in the market.
Through this report, it could be concluded that the contract with the MARSHAL
MOTOR HOLDING PLC would offer the high return to the comapny. Still, there are few
recommendations which must be followed by the company to manage the operations and
grab the opportunities from the market.