Financial statement Essay Example | Topics and Well Written Essays - 250 words

Financial statement - Essay Example (Strategos, 2014) An inventory turnover is the number times per year inventory is replaced. A quick turnover is desired in business because it is a reminder that inventories should not stay in the shelves too long. A high ratio means that sales are doing good and shows lower risk of too many unsold stocks. Inventory turn-over that is out of proportion to the industry norms is an indication of marketing problems of management like poor customer services 3. Current Ratio. Although the Current Ratio for 2013 is lower than 2012, this should not be a matter to be worried about by creditors, because the ratio is still high. This means company can still pay its maturing obligations. The accounting rule states, â€Å"the higher the ratio, the more capable the company is of paying its obligations and a ratio of below 1 means company would not be able to pay its obligations† (Accounting Coach 2014) 4. Debt to equity ratio. The D/E shows a slighter decrease in 2013. A 0.25 D/E ratio means the company has not been aggressive in financing its growth. A low D/E is favorable to stockholders because it does not use a lot of debt to increase its operations. A D/E is the â€Å"proportion of company’s asset supplied by company’s creditors vs. the amount supplied by the stockholders.†(Accounting Coach 2014). 5. Gross profit ratio. As in previous ratios, the 2013 GPR shows variance with 2012 exhibiting a lower ratio. GPR is the % of sales available for expenses and profit after the cost of goods sold is deducted, it is otherwise known as gross profit margin. I believe the average is not risky because Industry average of 33.91% is not very far from 0.3461 our case.(CSIS Market, 2014) . 6. Return on assets means the number of cents earned for every dollar of assets. A high value of ROA high means business is profitable. Comparing the 0.41% ROA to the industry average, which

The Treasury Profile For Marks & Spencer PLC Essay

The Treasury Profile For Marks & Spencer PLC - Essay Example The strategies and policies for administering these risks are being deliberated in this research essay. M& S is offering high grade quality clothing, exotic food and top grade home products. It has also expanded its operations in many foreign nations and is now operating in 43 foreign locations other than UK. M& S offers a wide range of high grade quality clothing, exotic food and top grade home products, which includes categories like kitchen accessories, house accessories, novelty gifts, decorations, various brands TVs, women’s accessories and clothing, men’s underwear accessories and clothing, office supplies, lingerie, men’s shoes, etc. Marks & Spencer Group is having a centralised Group treasury department to administer the funding requirements of the group and to manage the financial risk in tune with its approved Board’s treasury procedures and policies and operate within their delegated powers. M&S is having a record of twenty –one million satisfied customers in UK alone. It has achieved only a marginal increase in sales of 0.44% in the year 2009 as compared to 2008 due to impact of global economic recession. M& S is constantly paying its attention to customers by frequent surveys and research analysis, by monitoring sales and direct feedback from its customer’s service team. M& S is one of the leading retail chain stores in UK and also operates in many other countries. It has record sales of  £ M 9062.10 in the year 2009. Given its scale and size of the company, it is under heavy pressure to finance its both working capital needs and also in the long-term debt needs. To facilitate its funding needs, M&S group is operating a centralised Group treasury department to administer the funding needs of the group and to manage and control the financial risks in line with its Board of Director’s acknowledged treasury policies and with help of their delegated authorities. Treasury