Prepare a full ratio analysis and commentary for Craigielaw using the form. Assume that a share price
Question:
Prepare a full ratio analysis and commentary for Craigielaw using the form. Assume that a share price of 160 pence is applicable at both year-end dates.
Transcribed Image Text:
Industry average ratios for both Year 7 and Year 6 are as follows: Price-earnings ratio Dividend cover (payout ratio) Dividend yield Return on shareholders' equity Return on capital employed Net profit on sales Gross profit percentage Total assets usage Fixed assets usage Current ratio Acid test Inventory (stock) holding period Customers collection period Suppliers payment period Debt/equity ratio Interest cover 11 2.5 times 3.5% 22% 20% 19% 52% 1.6 times 2.9 times 2.5:1 1.1:1 140 days 69 days 35 days 30% 12 times
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
The priceearnings ratio is lower than that for the industry as a whole Investors have less confidence in the sustainability of current earnings levels That may reflect the lack of an upward trend in r...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Carry out a ratio analysis of Safe and Sure plc, using the financial statements set out in Appendix I (at the end of this book) and applying the method of analysis set out in section13.6. Making a...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
You are an information technology (IT) intern working for Health Network, Inc. (Health Network), a fictitious health services organization headquartered in Minneapolis, Minnesota. Health Network has...
-
Late in the semester, a friend tells you, "I was going to drop my psychology course so I could concentrate on my other courses, but I had already put so much time into the course that I decided not...
-
Which of the following statements is true about an object? (a) An object is an instance of the class. (b) Real-world objects share two characteristics-state and behavior. (c) A and B (d) None of the...
-
Robert Carr is the founder of Heartland Payment Systems, Inc. Carr was heavily involved in negotiations with Global Payments, Inc., concerning the acquisition of Heartland by Global. During this...
-
In 2014, Andys Corporation had year-end assets of $2,400,000, sales of $3,300,000, net income of $280,000, net cash flows from operating activities of $390,000, dividends of $120,000, purchases of...
-
1) John was in Miami, he visited his investment house and invested a total of US$12,000, a fraction at 4% and the remainder at 6%. His total annual return would be $620. How much did he invest at...
-
Operating profit margins The following extracts show the different ways in which three companies report their operating profit margins (operating profit as a percentage of sales). This ratio is an...
-
The summarised version of the Year 7 accounts of Worldchem plc is shown below along with comparative figures for the previous year. Most of the notes in the accounts, which give further details about...
-
In a certain part of a city, the average price of homes in 2000 was $148,822, and in 2001 it was $155,908. Suppose these means were based on a random sample of 100 homes in 1997 and 150 homes in 1998...
-
The capital gain yield of an equity security is 9.27 percent. The security paid a quarterly dividend of $0.55 per share during the year. What is the current price of the security if the total return...
-
Explain the steps necessary to develop a pro forma income statement and a pro forma balance sheet.
-
The risk-free rate is 5.19 % and the market return is 11.08 %. You are buying a firm with a perpetual cash flow of $9000 but you are unsure of its risk. If you think that its beta is 2.88 but its...
-
what is the dividend yield on a stock that is currently trading at$70 per share and is expected to pay a dividend of $2.21 per share over the next twelve months?
-
Describe the difference between a protective put and a straddle. In which situation would the straddle result in a higher profit?
-
What is the purpose of a free cash flow analysis?
-
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
-
Tots Ltd manufactures babies' play suits for sale to retail stores. All play suits are of the same design. There are two departments: the cutting department and the machining department. You are...
-
What are the main items in a statement of the cost of production of an item of output?
-
What are the main items in a statement of the cost of production of an item of output?
-
An existing mortgage with a $200,000 balance has a 5% rate and 20 years remaining. Monthly payments are $1320. A new 20-year $200,000 mortgage is offered with a 4.5% rate. There is a 1% loan...
-
Louis has an obligation to pay a sum of R7 000,00 four years from now. His creditor permits him to discharge the debt by paying R2 000,00 one year from now and a final payment of X three years from...
-
Can you elaborate on how Social Constructionism critiques essentialist views of identity and instead emphasizes the fluidity and context-dependence of identities as they are constructed within social...
Study smarter with the SolutionInn App