Financial Report Degree Case Study Example | Topics and Well Written Essays - 2250 words

Financial Report Degree - Case Study ExampleMonsoon plc deals in branded renewal of wear, footwear and accessories comprising two major chains i.e., Monsoon and Accessorize. The company caters to a vast range of customers young and old, manful and female, babies and children. Apart from clothing and accessories, the company also deals in home ware for instance, bed and bath lines, curtains, and early(a) home products (Company Info, accessed 06.04.2006).Blacks Leisure plc is a high street chain of superstores engaged in outdoor clothing and footwear business all over the United Kingdom having around 104 stores across the country. The company has a diversified customer market and its store design reflect this orientation. It provides clothing and travelling products to a wide range of customers of all ages and kind. It deals in several brands and provides a range of products relating to the outdoor activities and adventure most specifically clothing, tents, outdoor equipments, acc essories and instrumentsThe comparison and evaluation presented in this report is significant in the sense that it practically employs a wide variety of financial ratios to assess the financial position and performance of both the companies. ... This comparison would avail these users in forming a rationale for their major decision-making i.e., strategic planning, investment and funds lending etc.proportion ANALYSIS- BLACKS LEISURE GROUP PLC & MONSOON PLCRatio analysis is the best tool to evaluate a companys performance and find out problems (Meigs & Meigs, 1993). Riahi-Belkaoui (1998) comments that financial ratios are meant to make the information in financial statements interpretable for the various users of financial statements. Similarly, we allow assess and analyse the financial position and performance of the two companies Blacks Leisure plc and Monsoon plc using a wide of the mark array of financial ratios from the viewpoints of wariness, lenders and investors separatel y. Analysis For ManagementManagement needs to analyse its performance and efforts put into the corporeal affairs through the companys financial results so as to realise their strengths and weaknesses. Riahi-Belkaoui (1998, p11) says, the profitability ratios portray ability of the soused to efficiently use the capital committed by stockholders and lenders to generate revenues in excess of expenses. Therefore, the analysis from the management aspect has been done with the help of following profitability ratios RatiosBlacks Leisure PlcMonsoon PlcGross Profit Ratio53.07%61.51% top Profit Ratio6.54%15.66%Return on Capital Employed20.23%42.76%The Gross Profit Margin parting evaluates the percentage of profit earned by a company on sales after the toil and distribution activities (Mcmenamin, 1999). It shows how well the company manages its expenses so as to attain maximum profit out of its conglomeration sales. Monsoon plcs gross profit ratio of 61.51% reflects that the company