Whitbread Plc
4006BUSBM Management and Finance
Whitbread PLC
ID - 490537
Joe Nicholson
27/02/2012
Contents 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=0.44 166700/358000=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
Whitbread PLC
ID - 490537
Joe Nicholson
27/02/2012
Contents 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=0.44 166700/358000=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
References: 2009 2010 Liquidity: Concerned with the financial stability of a business, often in the short-term (Chapman, 2006) (128000-2200)/293000= 0.43 (166700-1300)/358000=0.46 Profitability: measures a company’s ability to generate wealth (Chapman, 2006) 228100/1334600*100=17.9% 254800/1435000*100=17.76% Efficiency: Concerned with measuring how an organisation manages and uses its resources (Chapman, 2006) (49700/1435000)*365= 12.6 days (49,900/1599600)*365=11.4 days Financial structure: how the business is funded between shareholders and loans, and the degree of risk 1152200/133700+625900+1152200*100=60.7 (2009) 1182600/133700+650600+1182600*100=60.13 (2010) Interest cover: 226200/234000=0.966667 (2009) 250800/250900=0.999601 (2010)