Managing Financial and Information Resources (

Question (1)

Balance Sheet for Fabrique Aérospatiale for the last years All figures in 000s

Assets 2013 2012 2011
Non-current assets
Property plant and equipment 971 626 592
Intangible assets 164 129 124
Investments in associates 84 83 82
Deferred income tax assets 22 21 20
Available-for-sale financial assets 109 93 89
Derivative financial assets 2 2 2
Trade and other receivables 15 8 7
Total non-current assets 1367 962 916
Current assets
Inventories- Stock 154 114 107
Debetors 124 115 112
Available-for-sale financial assets 12
Derivative financial instruments 7 6 2
Financial assets at fair value through profit and loss 74 50 41
Cash and cash equivalents 112 213 228
483 498 490
Assets of disposal group as held-for-sale 21
Total current assets 504 498 490
Total assets 1871 1460 1406

Equity

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Capital and reserves attributable to equity holders of the company
Ordinary shares 158 131 131
Share premium 107 66 66
Other reserves 97 44 36
Retained earnings 416 304 261
778 545 494
Minority interest in equity 45 11 11
Total equity 823 556 505
Liabilities
Non-current liabilities (Long Term liabilities)
Borrowings 720 602 578
Derivative financial instruments 1 1
Deferred income tax liabilities 77 57 47
Retirement benefit obligations 29 14 12
Provisions for other liabilities and charges 8 2 1
Total non-current liabilities ( Long term liabilities) 835 676 638
Current liabilities
Creditors 104 78 73
Current income tax liabilities 18 17 71
Borrowings 73 114 103
Derivative financial instruments 3 4 1
Provisions for other liabilities and charges 14 15 15
212 228 263
Liabilities of disposal group classified as held-for-sale 1
Total current liabilities 213 228 263
Total liabilities 1048 904 901
Total equity and liabilities 1871 1460 1406
Number of shares 1580 1310 1310
158.30 99.63 84.28
Share prices

Profit and Loss Account for Fabrique Aérospatiale

Continuing operations 2013 2012 2011

Sales Revenue 1319 702 689
Cost of sales (484) (292) (291)
Gross profit 835 410 398
Distribution costs (326) (133) (141)
Administration expenses (180) (65) (66)
Other income 12 8 7
Other (losses)/gains“net (1) 0 (6)
Loss on sale of land (7) 0 0
Operating profit 333 220 192
Finance income 11 10 7
Interest (51) (76) (71)
Finance costs“net (40) (66) (64)
Share of (loss)/profit of associates (1) 1 1
Profit before income tax 292 155 129
Income tax expense (91) (54) (40)
Profit after tax 201 101 89
Discontinued operations
Profit for the year from discontinued operations 1 1
Profit for the year 202 102 89

Dividends (90) (59) (52)
Retained earnings 112 43 37

Required:

1. Carry out and show the working of the following ratios for your selected companies for the last 3 years

Liquidity ratios (4 Marks)
Efficiency Ratios (4 Marks)
Gearing Ratios (4 Marks)
Profitability Ratios (4Marks)
Investment Ratios (4 Marks)

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2. Write a report to the board of directors analysing the ratio calculated in question (1) above. Compare the results against the last 3 years (20 Marks). Word Limit (800 words)

Template for Question (1) Requirement (1)

Ratio Calculation for 2013 2013 Calculation for 2012 2012 Calculation for 2011 2011
Profitability Ratios
ROCE Operating profit / Total capital
= Operating profit / Total capital
= Operating profit / Total capital
=
ROE Profit after tax / Equity capital
= £ Profit after tax / Equity capital
= Profit after tax / Equity capital
=
GP% Gross profit / Sales
= Gross profit / Sales
= Gross profit / Sales
=
OP% Operating profit / Sales
= £ Operating profit / Sales
= Operating profit / Sales
=
Efficiency Ratios
Debtor days Debtors x 365 / Credit sales
= Debtors x 365 / Credit sales
= Debtors x 365 / Credit sales
=
Creditor days Creditors x 365 / Cost of sales
= Creditors x 365 / Cost of sales
= Creditors x 365 / Cost of sales
=
Stock days Stock x 365 / Cost of sales
= Stock x 365 / Cost of sales
= Stock x 365 / Cost of sales
=
Liquidity Ratios
Current ratio Current assets / Current liabilities
= Current assets / Current liabilities
= Current assets / Current liabilities
=
Acid test ratio Current assets “ stock / Current liabilities
= Current assets “ stock / Current liabilities
= Current assets “ stock / Current liabilities
=
Financial Risk Ratios
Gearing ratio Long term debt / Total capital
= Long term debt / Total capital
= Long term debt / Total capital
=
Interest cover Operating profit / Interest charges
= Operating profit / Interest charges
= Operating profit / Interest charges
=
Dividend cover Profit after tax / Dividend
= Profit after tax / Dividend
= Profit after tax / Dividend
=
Investment Ratios
Earning per shares Net profit after tax/ number of shares Net profit after tax/ number of shares Net profit after tax/ number of shares
Price Earning Ratio Market value per share/Earning per share Market value per share/Earning per share Market value per share/Earning per share

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