Financial Analysis Next and Urberry

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 |  | BURBERRY|  |  | NEXT|  |
PROFITABILITY|  | 2010| 2009|  | 2010| 2009|
Net Profit Margin|  | 13.3%| 0.8%|  | 15.6%| 14.6%| Gross Profit Margin|  | 62.8%| 55.4%|  | 29.3%| 27.8%| ROCE|  | 26.8%| 1.7%|  | 56.6%| 45.7%|
Asset Turnover|  | 2.01| 2.08|  | 3.64x| 3.12x|
Cash Return on Capital Employed|  | 66.7%| 41.8%|  | 73.4%| 54.9%| GEARING|  | 2010| 2009|  | 2010| 2009|
Interest Cover|  | 27.77x| 1.28x|  | 20.97x| 9.44x| Gearing Ratio D/E (Short term Borrowings)|  | 35.0%| 45.4%|  | 3.5%| 86.27%| Gearing Ratio D/E (Long term borrowings) |  | -| -|  | 390%| 403.80%| Cash Interest Cover|  | 69.95x| 18.36x|  | 21.42x| 11.49x| EFFICIENCY |  | 2010| 2009|  | 2010| 2009|

Stock turnover|  | 128 days| 178.9 days|  | 46.80 days| 49.23 days| Trade Debtors (Receivables) Days|  | 26.32 days| 44.50 days|  | 55.75 days| 54.97 days| Trade Creditors (Payables) Days|  | 47.63 days| 37.34 days|  | 26.51 days| 31.63 days| Asset turnover| | 2.01x| 2.08x|  | 3.64x| 3.12x|

Retail Revenue to Number of Stores|  | 2.68 m| 2.67 m| | 4.39 m| 4.31m| LIQUIDITY|  | 2010| 2009|  | 2010| 2009|
Current Ratio|  | 1.53| 1.36|  | 1.37| 1.5|
Quick Ratio|  | 1.12| 0.88|  | 0.97| 1.06|
Net Op. Cash flow to Current Liabilities|  | 73.8%| 39.8%|  | 76.5%| 63.1%| Net Op. Cash flow to Total Liabilities|  | 69.1%| 37.4%|  | 36.7%| 27.8%| INVESTOR|  | 2010| 2009|  | 2010| 2009|

Dividend Cover|  | 1.34x| *|  | 4.01x| 4.22x|
ROE|  | 13.79%| 1.11%|  | 273%| 215%|
Dividend x share|  | 14p| 12p|  | 47p| 37p|
EPS|  | 18.8p| (1.4p)|  | 188.5P| 156p|
Dividend Payout Ratio|  | 74.5%| *|  | 24.9%| 23.7%| Cash Dividend Cover|  | 7.06x| 4.21x|  | 5.28x| 4.22x| Net Operating Cash flow x Share|  | 0.86| 0.5|  | 2.96| 2.32|

PROFITABILITY
1. Net Profit Margin = (PBIT/Turnover) *100
NEXT: Net Profit Margin ’09 = (478.3 / 3271.5) * 100 = 14.62% Net Profit Margin ’10 = (529.8 / 3406.5) * 100 = 15.6% BURBERRY: Net Profit Margin ’09 = (9.9 / 1201.5) * 100 = 0.8% Net Profit Margin ’10 = (171.1 / 1279.9) * 100 = 13.3% 2. Gross Profit Margin =(Gross Profit/Sales)*100

NEXT: Gross Profit Margin ’09 = (908.5/3271.5)*100 = 27.77% Gross Profit Margin ’10=(996.9/3406.5)*100= 29.26% BURBERRY: Gross Profit Margin ’09 = (665.8/1201.5)*100=55.41% Gross Profit Margin ’10 = (804/1279.9)*100= 62.81%

3. ROCE (Return on Capital Employed)=(PBIT/Capital Employed)*100 Capital Employed=(total assets – current liabilities)
NEXT: ROCE’09= (478.3/ (1760.4-713.5))*100=45.67% ROCE ‘10= (529.8/ (1693.5-758.1))*100=56.63% BURBERRY: ROCE’09= (9.9/ (1125.7-546.8))*100= 1.71% ROCE ’10= (171.1/ (1139.6-501.8))*100=26.82% 4. Asset Turnover=Sales / Capital Employed

NEXT: Asset turnover ’09 = (3271.5/ (1760.4-713.5)) =3.12xAsset Turnover ‘10= (3406.5/ (1693.5-758.1)) =3.64x BURBERRY: Asset turnover ’09 = (1201.5/ (1125.7-546.8)) =2.08x Asset Turnover ‘10= (1279.9/ (1139.6-501.8)) =2.01x 5. Cash Return on Capital Employed= Cash flow generated from ops. /Capital Employed NEXT: ROCE’09= (574.7/ (1760.4-713.5))*100= 54.9% ROCE ‘10= (686.7/ (1693.5-758.1))*100= 73.4% BURBERRY: ROCE’09= (242/ (1125.7-546.8))*100= 41.8% ROCE ’10= (425.6/ (1139.6-501.8))*100= 66.7% GEARING

6. Interest Cover = PBIT + Finance Income/Interest payable NEXT: Interest Cover ‘09= (478.3+1.3)/50.8= 9.44xInterest Cover ‘10= (529.8+0.8)/25.3= 20.97x BURBERRY: Interest Cover ‘09= (9.9+7.2)/13.4= 1.28xInterest Cover ‘10= (171.1+1.1)/6.2= 27.77x 7. Gearing Ratio D/E (Short term Borrowings)= (Short term borrowings (STB) / Equity(*100 NEXT: GR (STB) ’09= ((46.3+75)/140.6) *100 = 86.27%GR (STB) ’10= (4.7/133.6) *100= 3.51% BURBERRY: GR (STB) ’09= (244.7/539.3) *100 = 45.4%GR (STB)’10= (206.4/590.1)*100= 34.98%...
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