Balance Sheet and Annual Report
Abstract
This report will analyse Greggs’ 2010 annual report on the purpose of evaluating the company’s current operating condition and providing suggestions of improvement to the company’s management team. According to ASB'S Statement of Principles for Financial Reporting, the selected information will be provided to the following users: shareholders, loan creditor group, analyst-adviser group, employees, customers, suppliers, government and the public. Then, based on the key ratio calculations, the company’s financial performance is to be evaluated from two parts: profitability analysis and liquidity analysis. For the profitability analysis, the profitability ratios go up. It is mainly because the sale increases through adding the variety of goods. In addition, the liquidity analysis will show that the company is in a good position even though liquidity ratios are low. The main reason for that is strong cash flow. Besides, this report will evaluate the company’s future development in both positive aspects and uncertainties that recognise this company as a going concern. Finally, this report presents several recommendations in two areas: improving operating performance and preparing a better financial report.
Contents
Abstract 1
Scope of the report 3
1 Users of accounts 3 1.1Shareholders 3 1.1.1 Earning per share and dividends per share 3 1.1.2 Business performance 4 1.1.3 Future 5 1.1.4 Other information for shareholders 6 1.2 Loan creditor group 7 1.3 Analyst-adviser group 8 1.4 Employees 8 1.5 Customers 9 1.6 Suppliers 10 1.7 Government 10 1.8 The Public 11
2 Assessment of performance 11 2.1 Profitability analysis 12 2.1.1 Gross profit percentage increase 12 2.1.2 Pre-tax profit and after tax profit percentage 14 2.2 Liquidity analysis 15 2.2.1 Short-term operating position 15 2.2.2 Capital
This report will analyse Greggs’ 2010 annual report on the purpose of evaluating the company’s current operating condition and providing suggestions of improvement to the company’s management team. According to ASB'S Statement of Principles for Financial Reporting, the selected information will be provided to the following users: shareholders, loan creditor group, analyst-adviser group, employees, customers, suppliers, government and the public. Then, based on the key ratio calculations, the company’s financial performance is to be evaluated from two parts: profitability analysis and liquidity analysis. For the profitability analysis, the profitability ratios go up. It is mainly because the sale increases through adding the variety of goods. In addition, the liquidity analysis will show that the company is in a good position even though liquidity ratios are low. The main reason for that is strong cash flow. Besides, this report will evaluate the company’s future development in both positive aspects and uncertainties that recognise this company as a going concern. Finally, this report presents several recommendations in two areas: improving operating performance and preparing a better financial report.
Contents
Abstract 1
Scope of the report 3
1 Users of accounts 3 1.1Shareholders 3 1.1.1 Earning per share and dividends per share 3 1.1.2 Business performance 4 1.1.3 Future 5 1.1.4 Other information for shareholders 6 1.2 Loan creditor group 7 1.3 Analyst-adviser group 8 1.4 Employees 8 1.5 Customers 9 1.6 Suppliers 10 1.7 Government 10 1.8 The Public 11
2 Assessment of performance 11 2.1 Profitability analysis 12 2.1.1 Gross profit percentage increase 12 2.1.2 Pre-tax profit and after tax profit percentage 14 2.2 Liquidity analysis 15 2.2.1 Short-term operating position 15 2.2.2 Capital
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