Mba Finance Assignment

Only available on StudyMode
  • Download(s): 142
  • Published: November 24, 2010
Read full document
Text Preview
Ratio calculations

ROTA (Return on total assets):
ROTA = (PBIT * 100) / (Total assets - intangible assets)

2008
= (-7,415 * 100) / (149,918 – (36,352 + 1,571)
= - 6.62%
2009
= (-12,042 *100) / (134,179-(34,598-988))
= - 12.21%

Profit Margin:
Gross margin = (PBIT * 100) / Sales

2008
= (-7,415 * 100) / 294,414
= - 2.52%
2009
= (-12,042 *100) / 267,551
= - 4.50%

Return on capital employed (ROCE):
= PBIT / (Total assets-current liabilities)

=2008
= (-7,415 * 100) / (149,918 – 47,972)
= - 7.27%
2009
= (-12,042 *100) / (134,179-47,759)
= - 13.93%

Current ratio:
= Current assets / current liabilities

2008
= 71,466 / 47,972
=1.49
2009
= 63,344 / 47,759
=1.33

Quick ratio:
= (Current assets-stock) / current liabilities

2008
= (71,466-56,039) / 47,972
= 0.32
2009
= (63,344-50,140) / 47,759
=0.28

Stock turnover:
= Cost of sales / stock

2008
= 136,322/ 56,039
= 2.43
2009
= 122,387 / 50,140
=2.44

Fixed asset turnover ratio:
= Revenues / fixed assets

2008
= 294,414 / 78,452
= 3.75
2009
= 267,551 / 70,835
= 3.78

Debtors turnover ratio:
= (Debtors * 365) / Sales

2008
= (4,764 * 365)/ 294,414
= 5.91
2009
= (2,932 *365) / 267,551
= 3.99

Debt to equity ratio:
= Total borrowings / Equity

2008
= 66,486 / 83,432
= 0.80
2009
= 65,208 / 68,971
= 0.94

Income gearing:
= (Interest paid * 100) / PBIT

2008
= (2,742 * 100) / -7,415
= -36.98 %
2009
= (2,690 * 100) / -12,042
= -22.34 %

Profit per employee:
= (Profit before tax) / Number of employees

2008
= -9,260 / 5,418
= -1.71
2009
= -14,416 / 5,028
= -2.86

Sales per employee:
= (Sales) / Number of employees

2008
= 294,414 / 5,418
= 54.34
2009
= 267,551 / 5,028
= 53.21

Dividend per share (DPS):
=Dividend ordinary shares / number of ordinary shares

2008
= 1,705,000 / 42,625,853
= 4 Pence

2009
= 426,000 / 42,638,103
= 1 Pence
Earnings per share (EPS):
= (Net income-dividend on preferred shares)/ number of ordinary shares

2008
= (- 6,051,000 – 89,000) / 42,625,853
= -14.4 Pence
2009
= (-14,761,000 – 89,000) / 42,638,103
= -34.8 Pence

Dividend cover:
=Earnings per share / Dividends per share

2008
= -14.4 / 4
= -3.6
2009
= -34.8 / 1
= -34.8

Price Earnings ratio:
=Market price of share / Earnings per share

2008
= 177.5 / -14.4
= -12.3
2009
= 42 / -34.8
= -1.2

Dividend yield:
=Dividend per share / Market price of share

2008
= (4 * 100)/ 177.5
= 2.22 %
2009
= ( 1 * 100) / 42
= 2.38 %

ROE:
=Net income / Shareholders equity

2008
= (-6,051 * 100)/ 83,432
= -7.2 %
2009
= (-14,761 * 100) / 68,971
= -21 %

Company Overview
Blacks Leisure Group founded in 1861, operates in the retail and wholesale of clothing and camping equipment in the United Kingdom, Channel Isles and Ireland. The group operates in a highly competitive market. New entrants join the market on regular basis and current competitors continue to improve their standards. The outdoor market had become more attractive to the large retailers that challenges the Group in pricing. Although the Group generated a revenue of £267,7 million during the year it has an operating loss of (£12 million) and loss before tax of (£14,4 million). Chief Executive Neil Gillis, says the primary objective of the Group is to reduce costs and debt. Over the year by managing supply chain more effectively, the Group reduced debt facility from £40 million to £35 million. David Bernstein, Chairman, admits that the Group experienced a difficult financial year. On the other hand an improvement in working capital through a £5.9m reduction in the level of inventory was achieved and new processes have been put in place to meet and improve on the level of availability from this lower level of inventory. Cash management had a high level of focus through the year with improvements being made to supplier...
tracking img