Whitbread Plc

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4006BUSBM Management and Finance

Whitbread PLC

ID - 490537
Joe Nicholson

Title| Pages|
Financial Ratios| 3|
Executive Summary| 4|
Introduction| 4|
Significant changes affecting financial performance| 4-5| Profitability| 5|
Liquidity| 5-6|
Efficiency| 6|
Financial Structure| 6-7|
References/Bibliography| 7|

Financial Ratios: (sourced from Fame database) 2009 2010 Liquidity: Concerned with the financial stability of a business, often in the short-term (Chapman, 2006) Current ratio: Relationship between current assets and current liabilities 128000/293000=0.44166700/358000=0.47

Acid ratio: Compares current assets and liabilities, but it removes stock from the total of current assets. (128000-2200)/293000= 0.43 (166700-1300)/358000=0.46 Profitability: measures a company’s ability to generate wealth (Chapman, 2006) G-P margin: Examines the relationship between the profits made on trading activities only. It measures the level of gross profit against the level of turnover (sales made). 1141600/1334600*100=85.5% 1221500/1435000*100=85.12% N-P margin: Measures the relationship between the net profit (profit made after all other expenses have been deducted) and the level of turnover or sales made. 228100/1334600*100=17.9% 254800/1435000*100=17.76% Efficiency: Concerned with measuring how an organisation manages and uses its resources (Chapman, 2006) Sales rev per employee: measures the average revenue generated by each employee of a company. 1334600/26377=50.59711 1435000/25794=55.63309297 Receivables collection period: how long on average, it takes the company to...
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