Financial Performance of Morrison Plc Assignment

Financial Performance of Morrison Plc - Assignment Example Return on equity (ROE) provides information regarding how much profit the company has been able to generate in regards to its equity. A high ROE is desirable. Return on assets (ROA) tells an investor how effective a company has been at producing profits from its assets. A high metric is the desired output. The debt to equity ratio measures how much debt a company has with regards to its total equity. A low ratio is a good sign. The current ratio compares the current debt a company has in regards to its current liabilities. The formula is current assets divided by current liabilities. A high ratio is a warning because it’s a sign that the firm is having liquidity problems. Working capital is calculated by subtracting current liabilities from current assets. A positive working capital is the desired output. The quick acid ratio is calculated with the same formula as the current ratio except that in the numerator you must subtract prepaid expenses and inventory. The sales to asse t ratio represent how much revenue a company is generating in regards to its total assets. It is important to understand that in order to perform a complete analysis of the company’s performance utilizing ratio analysis the financial analyst must perform research to obtain information about the industry standard ratio performance. The results of the financial ratio analysis reflect that the performance of the company has declined between 2008 and 2009. The net margin, return on equity and return on assets metrics decreased in 2009. The current ratio went up by 4%. The company has liquidity problems evidence by its negative working capital for both 2008 and 2009. Based on the ratio analysis performed on Morrison Plc for the years 2008 and 2009 the researcher would not invest in the company. Prior to making giving this recommendation, the author would need to compare the 2009 ratio results with the industry standard.

Economics Assignment Example | Topics and Well Written Essays - 2000 words - 3

Economics - Assignment Example Manufacturers are essentially limited to the manufacturing of mobile handsets and accessories and supply them to the mobile phone network service providers. Most of the major manufacturers of mobile phone sets are however, foreign and UK imports mobile phones. Major manufactures of mobile phone handsets include Nokia, Samsung, Apple, Sony Ericson are all foreign firms providing mobile phone handsets and other accessories to the service providers.1 Network operators offer airtime and data services to the end users as well as other tied services. They also offer services to indirect services providers as well as the virtual network service providers. They also sell packages to the customers as well as to the dealers to provide pay as you go as well as other bundled services to end users. Dealers actually operate through their retail outlets and offer mobile phone handsets as well as services obtained from the network operators. Though there are large numbers of smaller and independent dealers however, market seems to be dominated by the few very large dealers such as phone4U and other dealers. The growth of mobile phone networks in UK started during 1985 when government started to de-regulate the market. Since then there has been mushroom growth of the mobile networks in the country. Over the period of time, new services have been added thus increasing the overall depth and breadth of the market. (Doyle and Smith, 1999) Some estimates suggest that there are more than 80 million users of mobile phone data services across the country. Such growth in the market therefore suggests that UK is one of the growing markets for the mobile phone networks. What is also critical to understand that the overall number of service providers have remained limited despite such growth in the market. Initially very few operators were allowed to operate however the overall inclusion rate has increased in the recent past. Firms like Orange, O2, and Vodafone