Accounting and Finance Essay 课程编码 BlK6 1819
Kingfisher Plc 是世界知名的公司之一。 它已经运行了超过 36 年。 在商界经营一家公司已经很久了。 根据本报告分析的财务表现，我们可以说公司的经营状况良好。它的一些比率达到了预期的表现。 但所有的比率都达不到标准。 所以，在某些领域，公司必须做得更好才能得到预期的结果。 另一方面，公司可以考虑与其他公司合资。
|Essay目录||Table of Contents|
Background of the company3
Five Years Strategic Plan:4
Evaluate the Financial Statements5
Gross Profit Margin8
Operating Profit Margin8
Net Profit Margin9
Acid Test Ratio10
Return on Assets (ROA)13
Return on Capital Employed14
Interest Coverage Ratio15
Price Earnings Ratio16
Earnings Per Share (EPS)16
A company is always being evaluated on the basis of its financial performance. A company, which has a good financial health is considered to be good in operations and management. A company with a healthy financial condition can capture the market more than others with less healthy financial conditions. To evaluate any financial conditions of any firm ratio analysis is the best way to evaluate them. Ratio analysis refers to the calculation of the different structure of the firm. When calculating any ratio, it focuses mainly on two variables related to it. There are mainly four types of ratio analysis being calculated in considering a firm’s financial health. These are Liquidity, Efficiency, Gearing, and Activity ratios. These measures the company’s profitability and how much they are capable of generating much profit. Here, we are going to discuss the Kingfisher Plc financial statement analysis. Analysis of the company's ratios. This report is designed to discuss the ratio analysis of Kingfisher Plc over the year from 2016 to 2018. From the beginning, we are going find the corporate objectives of the Kingfisher Plc, and their changes over the last three years, and will try to discuss the reason behind the changes in the overall corporate objectives over the last three years. Secondly, we will compare the financial ratios of Kingfisher Plc with the other company having the same qualifications as Kingfisher Plc's. Here, for the comparison, we choose Travis Perkins PLC as it has similar quality to the Kingfisher Plc. And finally, we will discuss the opportunities and the obstacles of the firm and the reasons behind these opportunities and obstacles. This report is designed to provide the overall procedures in comparing two similar quality firms against each other on the basis of their financial statement analysis known as ratio analysis.
Background of the company 公司背景
Kingfisher Plc is a British based multinational retailing company having the headquarter in London, with other regional offices established all over the United Kingdom and in The Republic of Ireland in places like Dublin, Edinburgh, and Cardiff. It is known as the largest home improvement retailing business in Europe, and third largest in the world. The company was founded in 1982 from the buyout by the Woolworths chain by Paternoster Stores Ltd.
Kingfisher Plc is one of the renowned companies in the world. It's been operating for more than 36 years. It’s been a long in the business world to run a firm. Based on the financial performance analyzed in this report, we can say that the company has well in its business operation. Some of its ratios has met its expected performance. But all the ratios are not up to the mark. So, in some areas, the company have to do better to get the expected results. On the other hand, the company can consider the joint venture with other company. By this, it can gain another business area and more customers. But before going for joint venture the company should consider that they have gearing ratios, net profit margin, gross profit margin, operating profit margin and stock days outstanding are way better than its competitors and as well as a healthy finding in the calculations, that should be maintained after joint venture. If they think that these ratios are going to be affected after going for a joint venture, then they could face losses in their business operations. So, the clause and rules should be taken into consideration before for a joint venture.
morningstar. (2018). Kingfisher PLC. Retrieved from morningstar.com: https://www.morningstar.com/stocks/xlon/kgf/quote.html
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