I need a financial ratio analysis done for any company you can find on this website
https://www.londonstockexchange.com/indices/ftse-a…
which is the London Stock Exchange website.
RATIO ANALYSIS FORMULA SUMMARY
Ratio
Formula (1 Mark)
Gross Profit
Revenue x 100
Description (1 Mark)
This shows how much control a firm
has over its cost of sales.
Operating Profit Margin
Operating Profit
Revenue
This shows how much control a firm
has over all of its costs, from its Cost
of Sales to its Expenses.
ROCE
PBIT
Capital Employed
Acid Test Ratio
Current Assets – Inventory
Current Liabilities
This shows the ability of a company to
meet its short-term financial
obligations and avoid imminent
bankruptcy, ie can they pay their
debts and it demonstrates the
efficiency of its cash management.
Gearing
Long-Term Debt x 100
Capital Employed
This shows the amount of debt in
relation to the resources invested in
the business and how much risk is
factored in for the shareholders.
Gross Profit Margin
x 100
x 100
This measures profit in relation to
resources available. It shows how
efficient a business is in using its
resources to generate profit.
Capital Employed
This is the total value of funds invested in a business – both in terms of Equity –>
Investment and Profit – and Borrowings –> Non-Current Assets (or Bank Loan).
Share Capital/Equity
+ Retained Earnings/Reserves
+ Operating Profit (from the Income Statement)
+ Non-Current Liabilities.
REPORT WRITING:
Writing and presentation skills
Noureen Naz
(Business lecturer)
Structure OF A REPORT
Title Page
Table of Contents
Executive Summary
Introduction
Findings
Conclusions
Recommendations
Bibliography/References
Appendices
Ratios – what being calculated:
List ratios, define/explain their
purpose, calculate.
Analyse ratio results.
Body of report
Include copies of any documents
used in your work – final accounts
eg Income Statement, Balance
Sheet.
Any other documents referenced
eg news articles or other
information from the final accounts.
Title page
• Title Page: Title + Author Name + Date
• Title should be brief and accurately reflect the subject of the report.
• Max length = 10 words.
Title
• Affects of Covid-19
• JD Sports
Good Title
• Affects of Covid-19 on New
Zealand’s Economy
• Analysis of JD Sport’s
Financial Performance from
2020 – 2020.
Sample title page
(A)
Abstract or Executive summary
• Executive summary found at the biggening of the report but written when you’ve completed the report.
• Approximately should be 100 – 150 words or less than 10% of the report.
• Use to capture the readers’ attention.
• Includes:
– Purpose of the report (analyse financial performance of…..),
– Investigation methods (ratio analysis & any other key methods used),
– Findings/Result (overall what were the strengths/weaknesses of the business)
– Conclusion/recommendations (what do you suggest for their future? This can include info from the
annual report or research that isn’t entirely financial eg they should continue their expansion into the EU)
• Should not write in note or list form with headings and subheadings. (Write in paragraph format)
Student- sample executive summary (1)
Sample of executive summary
This is an example of a well written Executive
Summary.
Note it covers topics we haven’t studied and
is for representation purposes rather than a
direct example for this report.
Table of Contents
• Make sure the pages and headings are numbered.
• It is highly recommended to use tools for:
– Headings
– Page numbers
– Table of contents
• Table of contents is normally created at the end of the writing report as it provides up to date headings with page
numbers.
• Make sure to use update option as shown in figure 1.
Students- sample Table of contents
INTRODUCTION
1.
Purpose: The aim of the report with WHAT
2.
Background: Reasons for the investigation/report with WHY
3.
Method of Investigation: approaches used for investigation.
4.
Scope: What are you covering with LIMITATION?
5.
Structure of the report: How is the rest of the report structured?
•
Use typical words and phrases.
•
Use present and past tense
1. Purpose
•
States that “WHAT is the aim of the report”.
•
Includes what the report will recommend.
Example
The purpose of this report is to investigate the reasons
behind the rise in computer gaming addiction among
teenagers. The report also recommends preventive
measures for computer gaming addiction.
Background
• Example
• A recent study on game technology (Tan, 2010) shows that nearly 75% of
teenagers in Singapore play computer games regularly and the majority of
them show signs of addiction. The rise in computer gaming addiction among
teenagers is a growing concern and the Ministry of Media Development
(MMD) would like to find out the reasons behind this trend.
• The report was commissioned by the Director of Corporate
Communications, Ms Julie Sim, on 31 May 2010.
• You can see the wider to narrow approach is used in the above example.
1.3 Method of Investigation
Primary data (i.e. data that is discovered by you, the writer of the
report).
For Example: questionnaire, interview, survey, creation of ratios from
financial report data
Secondary data (i.e. data that is already discovered by someone –
commentary in the Annual Report, Government reports).
For Example: text books, journals, articles, blogs, websites, annual
report data
May include references to secondary data
Method of Investigation
Example
Questionnaires were issued to 100 teenagers from 25 educational
institutions on 25 June 2010.
Three teenagers who were former addicts were also interviewed to
get more in-depth views.
References were also made to Accounting Text books and
online news articles.
1.4 Scope
• Scope is one of the essential component of report.
• It highlights what is included and what is excluded in the
report?
•
States the areas of investigation
•
what information you need in order to meet your
purpose.
Scope of the Repot – this can be a paragraph rather than bullet
points as below
For example:
➢ Report on the hands-on-project: Ratios used, Timeframe covered, external
sources also used (news articles, Govt publications etc).
➢ Report on the research project: What is the business called, what is the aim of
the report (financial performance of company & recommendations)
➢ Report on technical report: specify approaches, tools or models (Ratios) used
for investigation – potential limitations of this method.
➢ Exclusions – just looked at the one business rather than analyse competitors
results as well.
Results/ Findings
• Pick out the key results and present in your findings section – results of your ratio
analysis: what does it mean for the company?.
• Additional results may be added in appendix (you may decide to put the calculations in
the appendices and refer to them in your report).
• Describe, analyse, interpret and evaluate your findings (what do your results say about
the company, what changes may they need to make, what is positive? Link in annual
report comments and external information – is this a changing market sector? Eg Primark
have only just recently launched on online offering for their goods).
• You may illustrate graphs and illustrations.
Recommendations
• Based on your analysis work and ratios:
• Suggest improvements for the business.
• OR
• Future work / actions they could/should undertake.
• Make sure these are justifiable based on the results of your analysis and any additional
information you found (news reports/Government information/industry reports)
Bibliography
• The bibliography lists all the publications either cited in the report or referred to
during its composition.
Final Checks
• Before submitting your report, read it again and check the following:
• Proofread for typos and other errors – Microsoft often corrects or highlights errors – fix these before submitting,
don’t just submit anyway.
• Does the report answer the question(s) it was meant to?
• Have you included enough evidence?
• Is it logical in presentation and structure?
• Are the page and heading numbering, correct?
Do and Don’ts
• Avoid using “I” “we” or “they” in your whole report – use the business name.
• Avoid using different tenses in each section.
• Use present tense for the introduction.
– Examples:
• “This report investigates bicultural partnership……..”
• “This report provides….”
• “The aim of this report is to…”
• Use past tense for conclusion.
– Example:
• “In this report bicultural partnership was investigated..”
• In the conclusion, this report provided the recommendations for …”
PARTS OF A
REPORT
Part
Description
Title Page
Title, Author’s name, Date of submission
Table of Contents
List of sections, sub-sections, appendices, etc.
Executive Summary
Summary of entire report
Introduction
Purpose, Background, Methods of Investigation, Scope
Findings
Analysis of facts obtained
Conclusions
Deductions based on findings
Recommendations
Suggestions and advice based on conclusions
Bibliography/References
List of references
Appendices
Supplementary materials e.g. other supporting data
Presentation and language: Hints & Tips
• Content is key, but first impressions are important!
• Your report should look polished and professional.
• Make sure your report is well presented, with correct information on the title page, numbered pages, and clearly
labelled and numbered sections.
• Make sure you have followed the structure and style specified in your assignment brief.
• Use formal academic language and be as brief and concise as possible.
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Turnitin Report
Formatting
Title Page
Citation
Outline
