British Land Analysis
1．Capital Structure
1.1. Debt
A gearing ratio as defined as total debt as a percentage of common equity (datastream)，has increased from 12.2in 2011 to 30.0% in 2012. It seems to be a good phenomenon. .However, the ratio was higher than the average and media ratio except in 2011. It illustrates that oxford instruments is more highly geared and more risky investment compared to its competitors.
Furthermore, there is an increase in the finance cost in the consoliated income statement from 2.33 in 2011 to 3.09 25 in 2012, which is a positive sign. It has an increase in operating profit to produce a gain before taxation. So in the absence of other information, the shares could have been considered to be very attractive for a future investor.
1.2. Equity There are five shareholders own a significant stake in the group.The picture shows that no one investor can overly influence the company.we also note that the share holdings of the executive directors have increased their stake in oxford instruments. The Chief Executive has increased his stake from 50,701 shares to 159,105 during the year. they probably believe the share price is going to rise at some point in the future. It seems to be positive news Moreover, the company was awarded.It demonstrates oxford instruments will perform the best of they can.
1.3. Operating lease commitments
A review of both 2012 (£12.9m) and 2011 (£7.1m) shows a significant future commitment to minimum operating lease payments. The group's cash and cash equivalent , which include cash in hand and cash in bank, was about 35.1m in 2012, so it don't need to be concerned currently. Thus, they will they may face less risks on liquid funds unless company decide to borrow much more debt for expand their business.
2. A analysis of Company Performance
2.1. Profitability
In 2012, Oxford instruments achieved the highest operating profit margin of 9.25% over the 5 years. Moreover, Oxford instrumens’s margin has increased
1.1. Debt
A gearing ratio as defined as total debt as a percentage of common equity (datastream)，has increased from 12.2in 2011 to 30.0% in 2012. It seems to be a good phenomenon. .However, the ratio was higher than the average and media ratio except in 2011. It illustrates that oxford instruments is more highly geared and more risky investment compared to its competitors.
Furthermore, there is an increase in the finance cost in the consoliated income statement from 2.33 in 2011 to 3.09 25 in 2012, which is a positive sign. It has an increase in operating profit to produce a gain before taxation. So in the absence of other information, the shares could have been considered to be very attractive for a future investor.
1.2. Equity There are five shareholders own a significant stake in the group.The picture shows that no one investor can overly influence the company.we also note that the share holdings of the executive directors have increased their stake in oxford instruments. The Chief Executive has increased his stake from 50,701 shares to 159,105 during the year. they probably believe the share price is going to rise at some point in the future. It seems to be positive news Moreover, the company was awarded.It demonstrates oxford instruments will perform the best of they can.
1.3. Operating lease commitments
A review of both 2012 (£12.9m) and 2011 (£7.1m) shows a significant future commitment to minimum operating lease payments. The group's cash and cash equivalent , which include cash in hand and cash in bank, was about 35.1m in 2012, so it don't need to be concerned currently. Thus, they will they may face less risks on liquid funds unless company decide to borrow much more debt for expand their business.
2. A analysis of Company Performance
2.1. Profitability
In 2012, Oxford instruments achieved the highest operating profit margin of 9.25% over the 5 years. Moreover, Oxford instrumens’s margin has increased