Financial Report Analysis Assignment Example | Topics and Well Written Essays - 1000 words

Financial Report Analysis - Assignment Example The Group’s performance in 2012 is testament to the strength of their strategies, the quality of their technologies and the ability and determination of their employees and members. They made a final payment to shareholders of 11.9 pence per share bringing the full year payment to 19.5 pence per share, an increase of 11 per cent from the year 2011. Ratio analysis is very important to all companies as it gives an insight on the hidden features of the company performance. Rolls-Royce Company seems to be performing very well for the past five years and more so for the reports provided at the end of February 2013 (GROPPELLI, ANGELICO, EHSAN NIKBAKHT ,2000 pg. 43). All of the ratios calculated including profitability, liquidity, gearing and returns ratios exhibits the company as being on the right track in terms of growth. The returns on investment and returns on capital employed have more than doubled in a period of one year. This is a clear indication that the shareholdersâ€℠¢ funds are being employed in the right manner. On the profitability ratios, all of them have experienced growth and improvement in the last one year while maintaining a relatively constant growth in expenses which gives a good report on the company. the company is also very liquid as exhibited by the positivity and the growth of the liquidity ratios. GROUP TWO YEAR REVIEW FOR THE YEARS ENDED 31ST DECEMBER INCOME STATEMENT 2012 2011 Revenue 12,161 11,124 Profit before net research and development and share of results of joint ventures and associates 2,488 1,536 Research and development (net) (589) (463) Share of results of joint ventures and associates 173 116 Profit before financing 2072 1189 Net financing 633 (84) Profit/(loss) before taxation 2705 1105 TAXATION (410) (257) Profit/(loss) for the year 2295 848 Attributable to: Equity shareholders of the parent 2281 850 Non-controlling interests 14 (2) Profit/(loss) for the year 2295 848 Research and development (gross) (919) (908) Underlying profit before taxation 1429 1157 EARNINGS PER ORDINARY SHARE: underlying 59.27p 48.54p basic 123.23p 45.95p Payments to shareholders per ordinary share 19.50p 17.50p BALANCE SHEET assets 18115 16423 liabilities (12010) (11904) Net assests 6105 4519 Ratio calculations Type of ratio formula 2012 2011 Liquidity ratios Current ratio Current assets Current liabilities 9593= 1.33 7194 8315 = 1.202 6916 Acid test ratio Current assets- stock Current liabilities 0.95 0.83 Net working capital ratio Net working capital Net assets 2399 = 0.39 6,105 1399 = 0.31 4,519 Working capital Current assets – current liabilities 2399 1399 Cash ratio Cash + marketable securities Current liabilities 1317 = 0.183 7194 223 = 0.032 6916 Leverage ratios Debt ratio Total liabilities Total assets 12010 = 0.66 18115 11904 = 0.725 16423 Debt /equity ratio Total liabilities Net worth 12010 = 1.97 6105 11904 = 2.6 4519 Long-term debt ratio Long term liabilities Net assets 11405 = 1.87 6105 11723 = 2 .6 4519 Profitability ratios Gross margin ratio Gross profit sales 2745 = 0.2 12161 2448= 0.2 11124 Operating margin EBIT sales 2705 = 0.045 12161 1105 = 0.019 11124 Operating ratio operating expenses sales 1918 = 0.16 12161 1714 = 0.15 11124 Net profit margin Net profit sales 2295 = 0.19 12161 848 = 0.08 11124 return of investment (ROI) Net profit after taxes Total assets 2295 = 0.127 18115 848 = 0.052 16423 Return on capital employed ROCE Net

Geographical Characteristics of Cyprus Essay Example | Topics and Well Written Essays - 1500 words

Geographical Characteristics of Cyprus - Essay Example Cyprus experiences a subtropical climate as a benefit from the presence of mountain ranges and vast central plain which is drained by rivers. The quick-developing Cyprus economy is largely indebted to its geographic specifications and the socio-cultural influences of the migrant populations residing in the mainland. This essay will clearly study the geography of Cyprus as an evaluative overview of its climatic, demographic and socio-cultural designs. Topographic Details The charm of the topography of the country is elevated with the mighty stand of Mount Olympus. Geologists like Simmons have always focused this island for its location; Cyprus covers around 9550 square kilometers of land area that lies nearly 65 kilometers south of Turkey and 105 kilometers far from the west of Syria with four major topographic provinces including the coastal belt, the northern range, the southern range, and the central plain (6). Cyprus has a typical climate that experiences warm winters and moderate ly hot summers with a high number of sunshine hours and frequent rains in winter. The country has been renowned for its historical and epical prominence in the European civilization. This small island country is known for its rich mineral wealth, wine produces and extreme natural beauty. Interim volcanoes along the mountains and violent weather conditions across the fertile valleys make the golden-leaf like island a location of might hiding in beauty. In the opinion of Bowman, Goult and Hunt, the prominence of Greek mythology has also helped Cyprus achieve the position as the world’s hottest choice for honeymooners, bird watchers and all kinds of tourists as this island is believed to be the home of Aphrodite, the Greek goddess of love. This Island features home for a wide range of plants and animals that add to its specific beauty. Economic and Political Implications of Geography Salt lakes and salt marshes that lie over a large area of the mainland makes the scarcity of wat er worse; however, there are many rivers that drain the agricultural land and meet the purpose of the population to a great extent. Cyprus is largely an agricultural region where the people engage mostly in livestock production and related trades while a large proportion of the people engage in crop production. According to an expert’s opinion, â€Å"the island’s microclimates and varied topography allow for diversified crop production† (Mirbagheri, 4). Animal husbandry involves the production and sales of milk, egg and meat of different animals. Farmers engaged in the crop production from irrigated farms produce grapes, melons, lemons and bananas while wine grapes, cereals, olives, fodders and almonds are produced mainly depending on rain-fed farms. Spring-summer cultivation of majority of crops Cyprus depend on the stored moisture of the land and deep summer crops depend on irrigation. The crops produced are largely used for the domestic consumption while the surplus is exported mainly to the European Union nations. Certain studies reveal that Cyprus gains around 480milli litter of average annual rain fall – a meager quantity compared to the requirement – a result of which farmers depend on scarce water resources for agricultural purposes (Cyprus Profile). Continuous droughts and volcanoes create water shortage in the central plains of Cyprus that