The following key performance indicators and financial ratios have been extracted from the most recent financial...
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The following key performance indicators and financial ratios have been extracted from the most recent financial statements of a retail company. Key performance indicators: Total sales growth Like for like sales growth 5.10% 4.20% Total number of stores 559 646 661 Capital expenditure $40.5m $30.8m $26.2m $39.8m Earnings before interest and tax $35-7m $38.6m Earnings per share (basic) 212.20 241.2¢ Financial ratios: Gross margin Financial years ended 31 December 2016 2017 6.10% Distribution costs to sales Administration costs to sales 2014 11.40% 6.50% 2015 7.80% 10.60% 6.40% 617 Operating profit to sales Finance income to sales Finance expense to sales Net profit after tax to sales Return on equity Equity to total assets Current ratio (to 1) Quick ratio (acid test ratio) (to 1) Cash and cash equivalents at 31 December ($000) 2018 3-40% 0.45% 670 $31.0m $45.1m $46.6m $40.4m 276.30 280.5€ 257.0€ 2017 61.9% 46.3% 6.7% 8.8% 0.58% 0.02% 6.4% 18.8% 67.2% 1.3 1.2 65,602 2018 62.0% 48.3% 6.7% 7.0% 0.29% 0.02% 4.9% 18.7% 63.4% 0.7 0.5 19,585 **Like for like sales growth' is calculated for key stores which are regarded as representative of the company's core business and which were all owned and operated by the company throughout the five year period. Required: Write a report (1,000 words or less) for a current investor in the company reviewing the progress of the company as evidenced by the information above, stating any limitation in your analysis. The following key performance indicators and financial ratios have been extracted from the most recent financial statements of a retail company. Key performance indicators: Total sales growth Like for like sales growth 5.10% 4.20% Total number of stores 559 646 661 Capital expenditure $40.5m $30.8m $26.2m $39.8m Earnings before interest and tax $35-7m $38.6m Earnings per share (basic) 212.20 241.2¢ Financial ratios: Gross margin Financial years ended 31 December 2016 2017 6.10% Distribution costs to sales Administration costs to sales 2014 11.40% 6.50% 2015 7.80% 10.60% 6.40% 617 Operating profit to sales Finance income to sales Finance expense to sales Net profit after tax to sales Return on equity Equity to total assets Current ratio (to 1) Quick ratio (acid test ratio) (to 1) Cash and cash equivalents at 31 December ($000) 2018 3-40% 0.45% 670 $31.0m $45.1m $46.6m $40.4m 276.30 280.5€ 257.0€ 2017 61.9% 46.3% 6.7% 8.8% 0.58% 0.02% 6.4% 18.8% 67.2% 1.3 1.2 65,602 2018 62.0% 48.3% 6.7% 7.0% 0.29% 0.02% 4.9% 18.7% 63.4% 0.7 0.5 19,585 **Like for like sales growth' is calculated for key stores which are regarded as representative of the company's core business and which were all owned and operated by the company throughout the five year period. Required: Write a report (1,000 words or less) for a current investor in the company reviewing the progress of the company as evidenced by the information above, stating any limitation in your analysis.
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Report on the Progress of the Retail Company Introduction This report aims to review the progress of the retail company based on the provided key performance indicators and financial ratios The analys... View the full answer
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730302414
4th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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