Question
Please prepare a financial performance analysis for GREGGS using the below format. Ratios have been calculated already, see the attached screenshot. please you may use
Please prepare a financial performance analysis for GREGGS using the below format. Ratios have been calculated already, see the attached screenshot. please you may use the publicly available annual report from GREGGS for extra information
Introduction
Company Profile (8- 10 lines)
Part A
Two Recent Developments (12 marks)
Development 1
Globalisation, AI etc
- Explain
- Financial impact
- Strategy used
Development 2
Globalisation, AI etc
- Explain
- Financial impact
- Strategy used
Part B
Sources of finance (8 marks)
- Discuss
- Implications of Equity Finance
- Implications of Debt Finance
Modigliani and Miller theory
Dividend policy(8 marks)
- Relevancy Theory
- Irrelevancy Theory
Discuss your company policy and show a table how much were paid
| 2023 | 2022 | 2021 |
| 54m | 52m | 50m |
Modigliani and Miller theory
Capital Structure (calculations of Debt: Equity Ratios)
| Debt: Equity Ratio | 2023 | 2022 |
| Formula | 50:100M | Calculations |
| E:D (D/E) | 1:2 | Answer |
Discuss
Mention Modigliani and Miller theory
Part C
Financial Performance Analysis
- Aims of Financial Performance Analysis
Profitability ratios
- Aims of Profitability ratios(Explain)
| Formulae | 2023 | 2022 | |
| Gross Profit ratio | (GPsales)x100 | Calculations | Calculations |
| ROCE | Calculations | Calculations |
Trends (discuss)
3-4 lines
Recommendations (how to improve)
(3 4 lines)
Liquidity ratios
- Aims of Liquidity ratios (Explain)
| Formula | 2023 | 2022 | |
| Current ratio | CA:CL | Calculations | Calculations |
| Acid test ratio | CA- Inventory:CL | Calculations | Calculations |
- Trends (discuss)
3-4 lines
- Recommendations (how to improve)
(3 4 lines)
Efficiency ratios
- Aims of Efficiency ratio (Explain)
| Formula | 2023 | 2022 | |
| Receivables in days | Calculations | Calculations | |
| Payable in days | Calculations | Calculations |
- Trends (discuss)
3-4 lines
- Recommendations (how to improve)
(3 4 lines)
Investment ratios
- Aims of Investment ratios (Explain)
| Formula | 2023 | 2022 | |
| Gearing Ratio | Debt D+E) x 100 | Calculations | Calculations |
| Payable in days | Calculations | Calculations |
- Trends (discuss)
3-4 lines
- Recommendations (how to improve)
(3 4 lines)
Conclusion
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
5th Canadian edition
77429494, 1259105709, 1260480798, 978-1259105708
