Introduction This report is going to use annual report to analyze the Next PLC through multiple point of view for the purpose of advise, and the final user will be the board of NEXT PLC. The report will consist of three parts, firstly, it will illustrate the comparison on performance, financial position and liquidity between year 2010 and 2011, meanwhile compare the same criteria with its competitor - Debenham PLC in 2011. Secondly, Explain and evaluate how the company applies the international accounting standards. In final part, it will have executive summary covering part one and two. PART ONE Compare NEXT PLC Current performance, financial position and liquidity with previous year. Next plc : Next is a UK based retailer company, it …show more content…
Based on Next Annual Report and Account January (2011), the chief executive's review present the A New Normal of company overview, due to the changing consumer environment, Next PLC need to have New avenues of growth, and brand new way to control cost, also, it will be important that retailer have to generate the healthy cash flow with cautious management. Furthermore, enable to know how company efficiently use asset to generate revenue and whether there was improvement between 2010 and 2011, the activity ratios have to calculate out. The ROCE in 2010 and 2011 were 38.91%,41.79%, this number showed how profit generated by capital employed, and the growth figure of ROCE lead to level up efficiency asset used.((NEXT PLC, 2011 page43, 45) The figure for inventory turnover, receivable turnover, and payable turnover in 2010 and 2011 were 46.81 days, 54.98 days; 66.07days, 68.23 days; 83.36days,81.3days; respectively. (ibid) It is clearly show that the inventory and receivable turnover in 2010 was taken lesser day than 2011, in which means inventories took less day to sold out to costumer and the cash credit receive more faster than the 2011, besides, the payable turnover had longer period than 2011, it was also a good example to illustrate that there was more cash flow holding by company, and the overall image of these figure present that the resource had been
This paper will presentation the Britvic plc strategy position by the analysis of external and internal environment. And give some advices.
2) Safari Park. The safari park is a big money maker for Longleat as it attracts the most people. This is because the animals are in their natural surroundings and not kept in cages, my doing this another aim is met, - raising awareness and presentation of Natural Environments. This is why years on later and years to come the safari park has been extremely successful.
The decline of inventory turnover presents the incresed possibility of inventory obsolescence which is likely to be assessed as higher business risk. In debts to equity part, the ratio in current year is much higher than that of preceeding year, which means the extent of use of debt in financing company is much higher than before. Pinnacle has used most of its borrowing capacity and has little cushion for addional debt.This action brought high business risk to Pinnacle. In addition, Pinnacle puchase more inventory in current year that that of preceeding year, and net sales are increasing also compared previous year. However, the net income is decreased significantly. These changes show expenses (maybe direct or indirect) have increased dramaticly. The company uses more expensive materials and labors to manufacure and sell products.
The following report consists of two parts; PART A identifies Whitbread’s main business information users (or, stakeholders), based on the information provided on their website. In contrast, PART B analyses different types of business structures and determines the pros and cons of Whitbread being a PLC. Tables and bulleting are used throughout the text to convey a vast volume of information in the given scope.
On the other hand, the company has been growing constantly. In deed, according to the net income estimation for 2007 (see Table 7) the company increases its profits $25 thousand dollars more than the previous year. This is an evidence of how the company is been management and of its willing to grow year after year. Nevertheless, the first quarter of 2007 the working capital only has increased by $7 thousand dollars, which is the difference between the current assets and current liabilities but the importance of this is that according to the rotation on receivables and payable accounts, shown in Table 5 and 10, leads us to the conclusion that the company will have to pay its suppliers
This report discusses the challenges that The Nucor Corporation faces during this era of social and economic climate change. Using Porter's Five Forces Analysis and Four Generic Strategies, we will assess the steel industry standards as it relates to the strategies implemented by the Nucor Corporation. We will also assess what Nucor’s strengths and weaknesses are, and if they will be able to continue
The world of technology advances every day. People are finding better ways to use software
I have researched the company’s financial reports. There will be a financial analysis of the company comparing its present to past two years’ performance and to the performance of its major competitors.
This assignment will analyse and compare the financial performance between NEXT and DEBENHAMS by examining their latest Annual Reports. In order to conclude and comment on these two businesses, appropriate ratios will be calculated through the figures in their business financial statements and the information regarding their industry and market conditions in Annual Reports will also be analysed.
Reserve coverage ratio, despite the increase in loss reserves, is decreasing dramatically, from 213% in 2006 to 87% in June 2008, indicating an enormous increase in non-performing assets (NPA). The main reason on increase in NPAs the fact that high percentage (32.9%) of company’s total loans is Real Estate loans. This is the reason that company’s interest income has decreased despite the increase in loans made in 2008. Efficiency ratio is basically an operating expense margin measure, the lower the better. The above 60 percent efficiency ratio, 50 percent generally regarded as optimal, is an indicator of company's deteriorating performance.
In this report I will be providing the UK’s largest supermarket, Tesco with advice on their performance. I have chosen to use two types of analytical models to review the company; I will be looking at the organisational structure of Tesco, as well as analysing their business and competitive strategy.
The company’s creams inventory remains constant because it does not follow a trend in innovation and changes so often as the other products. The surplus in inventory is a big disadvantage since; last year’s products may not be in style this year in addition to the cost of storage. For all these reasons their cash flow is less in comparison with previous years causing that Luxor Cosmetics keeps increasing their bank loans, creating more debt, making it harder to pay out as 2011. In this particular situation the company could have either decrease its budgeted sales (productions) or increase its actual sales by improving more effective marketing strategy and research and development of its products in the markets. This way their inventory would decrease and their cash flow would increase. (Hopkins, 2009)
Asset turnover ratio is also increasing in 1994. It shows that total assets are being efficiently used in producing revenues.
The aim of the following report is to assess the financial activity of Britvic PLC over a sixty months period, from January 2005 until December 2009, in order to make recommendations for a future investment in the company.
First of all it is considered as crucial to find out in which environment the company CHR exists, therefore I decided to use Porter`s five forces model and Pest analysis.