Rolls Royce ratio analysis

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Business Accounting Assignment
BABS 1

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Lecturer: Mr Baldev Singh
Company: Rolls Royce holdings plc

Contents

Appendix 1.0-ROLLS ROYCE`S PROFILE
Rolls Royce holdings plc the former Rolls Royce group plc is a British company headquartered in, the company is part of the aerospace and defence industry, it provides power systems and services for use on land, at sea and on air.
The company is present in 4 main segment civil and aerospace, defence aerospace, marine and energy.
ROLLS ROYCE is engaged in the development, manufacture, marketing and sales of plane engine, military aero engine, marine propulsion systems, electrical power generator and being responsible of after-market services as well.
In the civil aerospace, Rolls Royce equip more than 30 types of commercial aircraft and more than 12500 engines manufactured by the company are in service all over the world, in addition Rolls Royce is the world`s 2nd largest provider of defence aero engines with almost 18000 engines in service spread worldwide in 103 countries.
To achieve its, goals company is driven by Sir Simon Robertson the chairman and John Rishton chief executive.
The company values is: trusted to deliver excellence, the vision is: better power for a changing world and the strategy is: understanding our customers, innovation, and profitable growth. (Rolls Royce holdings plc, 2013)
Appendix 2.0-RATIO FORMULA
2.1-profitability
-Gross margin

£ m

2013
£ m

2012

gross profit

3,316

2,745

gross margin =

×
100

×
100
21%

×
100
23%

sales

15,513

12,161

-Net profit margin

2013

2012

profit after tax and interest

1,379

2,295

net profit margin =

×
100

×
100
9%

×
100
19%

sales

15,513

12,161

-ROCE



References: financialmemos. (2013). gearing ratio formula,calculation with analysis. Retrieved april 2014, from http://financialmemos.com/gearing-ratio-formula-calculation-and-analysis-with-examples/ Irfanullah, J jan, i. (2013). gross margin ratio. Retrieved april 09, 2014, from http://accountingexplained.com/financial/ratios/gross-margin Kennon, j Kenon, J. (2012). acid test ratio. Retrieved april 2014, from http://beginnersinvest.about.com/od/investingglossary/g/acid-test-ratio.htm Peavler, R Rolls Royce holdings plc . (2014). Rolls RRoyce holdigs plc full year result. Retrieved april 2014, from http://www.rolls-royce.com/news/press_releases/2014/13022014_2013_full_year_results.jsp Rolls Royce holdings plc Rolls Royce holdings plc. (2013). annual report 2013. Rolls Royce holdings Plc annual report 2013, 2-7. Rolls royce holdings plc. (2013). Rolls Royce holdings plc 2013 annual report. Wilkinson, J Wilkinson, j. (2013). quick ratio definition. Retrieved april 2014, from http://strategiccfo.com/wikicfo/quick-ratio-analysis-2/ Wilkinson, J

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