Financial Analysis
financial analysis By: andreas ioannides E-mail:
TABLE OF CONTENTS. INTRODUCTION. PROCEDURE. FINDINGS. 1.0 INVESTMENT RATIOS - MEASURES OF EFFICIENCY. 1.1 Earnings per Share. 1.2 P/E Ratio or Price / Earnings Ratio 1.3 Dividend Yield. 1.4 Dividend Cover. 2.0 PRIMARY OPERATING RATIOS - MEASURES OF EFFICIENCY. 2.1 Return on Capital Employed 2.2 Debtors Turnover Ratio 2.3 Creditors Turnover Ratio 2.4 Return on Shareholders' Fund 3.0 PRIMARY FINANCIAL RATIOS - GEARING AND LIQUITY. 3.1 Gearing Ratio 3.2 Liquidity Ratio 3.2.1 Current Ratio 3.2.2 Quick or Acid Ratio 4.0 CASH FLOW CONCLUSION RECOMMENDATIONS APPENDICES BIBLIOGRAPHY - REFERENCES INTRODUCTION It can be suggested that accounting consists of identifying, measuring and communicating business information to facilitate judgements and decision making for the further future. This specific report is pointed at investigate National Grid Group Plc's report and accounts in order to decide whether someone should invest or not in this company. Someone, who is able to analyse this company, must have its Annual Report for at least two years, which will help the person, because it contains basic components like the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the Director's Report. PROCEDURE In order to guide you to understand about this specific company, I have used the Annual Review by following some steps: 1) To summarise the size, the structure and the profit of the company I have first check the balance sheet and the profit
TABLE OF CONTENTS. INTRODUCTION. PROCEDURE. FINDINGS. 1.0 INVESTMENT RATIOS - MEASURES OF EFFICIENCY. 1.1 Earnings per Share. 1.2 P/E Ratio or Price / Earnings Ratio 1.3 Dividend Yield. 1.4 Dividend Cover. 2.0 PRIMARY OPERATING RATIOS - MEASURES OF EFFICIENCY. 2.1 Return on Capital Employed 2.2 Debtors Turnover Ratio 2.3 Creditors Turnover Ratio 2.4 Return on Shareholders' Fund 3.0 PRIMARY FINANCIAL RATIOS - GEARING AND LIQUITY. 3.1 Gearing Ratio 3.2 Liquidity Ratio 3.2.1 Current Ratio 3.2.2 Quick or Acid Ratio 4.0 CASH FLOW CONCLUSION RECOMMENDATIONS APPENDICES BIBLIOGRAPHY - REFERENCES INTRODUCTION It can be suggested that accounting consists of identifying, measuring and communicating business information to facilitate judgements and decision making for the further future. This specific report is pointed at investigate National Grid Group Plc's report and accounts in order to decide whether someone should invest or not in this company. Someone, who is able to analyse this company, must have its Annual Report for at least two years, which will help the person, because it contains basic components like the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the Director's Report. PROCEDURE In order to guide you to understand about this specific company, I have used the Annual Review by following some steps: 1) To summarise the size, the structure and the profit of the company I have first check the balance sheet and the profit
References: (1996/97-£ nil). 2.2 Debtors Turnover Ratio. The DTR measures the length of time it takes the debtors to pay the company for purchases