Dairy crest analyse
Étude de cas : Dairy crest analyse. Recherche parmi 300 000+ dissertationsPar mehdih5 • 7 Janvier 2017 • Étude de cas • 983 Mots (4 Pages) • 694 Vues
University of Westminster
Westminster Business School
Module code and title: BBUS403.2 Financial Information
TITLE : Dairy Crest Financial Analysis.
Student Name: MEHDI HABACHI
Student ID number: W1500109
Date: 27 April 2015
Dairy Crest is the largest dairy company in the United Kingdom, producing and vending fresh milk and branded creamery products. The company focuses on Animal production mainly the dairy cattle and milk production by diversifying their production into three different products:
- Spreads, butter and margarine;
- Cheese and whey;
- Fresh conventional, organic and flavoured milk.
Auditors have been engaged by Dairy Crest Group Plc (“the Company”) to review the condensed set of financial statements of the year ended 31 March 2014. Established on the auditor’s review, all thing shows that the condensed set of financial statements of the year ended 31 March 2014 is well prepared, in all material respects. And the auditors gives their opinion concerning different financial information of the company, their assessment of risks of material misstatement by identifying the risks that have had the most effect on the overall audit strategy and as well to response to these risks by accounting for promotional accruals, including the impact of revenue recognition, by assessing the carrying value of non-current assets, by accounting for exceptional items and by the determination of reportable segments and they gives as well their application of materiality.
The auditor's report is a explicit judgment realized by an auditor (internal or independent outside) as a result of evaluation conducted on a legal entity or a subdivision. The company can make decisions based on the results of the analysis established on the report provided to the company as an insurance service. The report of the auditor is regarded as an essential device in the statement of financial information to users. As many companies prefers that financial an independent external auditor must certify information. It is important to notice that the reports of the auditors on the financial statements are not used as assessments to evaluate entities to take a decision. The auditor's report is only an opinion, whereas all other decisions are left to the company to decide.
Ratio | Expression | 2014 | 2013 | 2014 Result | 2013 Result | Industry Average |
Eg Trade receivables period | 39 days | 26 days | - | |||
ROE | ROE = Net Income / Shareholder’s equity | 17,28% | 15,29% | 17,3% | 15,31% | 19% |
Gross profit margin | GPM = (Revenue – Cost of Goods Sold) / Revenue | 5,69% | 5,25% | 5,69% | 5,25% | 10% |
Net profit margin | NPM = Net income / Sales revenue | 3,59% | 3,40% | 3,60% | 3,40% | 3% |
Current ratio | CR = Current assets / Current liabilities | 1.59 | 1.49 | 1.59 | 1.49 | 1.70 |
Inventory turnover period | ITP = Cost of goods sold / average inventory | 61 days | 58 days | 61 days | 58 days | 50 days |
Payables’ turnover period | PTP = Total suppliers purchases / Average accounts payable | 37 days | 31 days | 37 days | 31 days | 20 days |
Gearing ratio | GR = Total debt / Total equity | 3,83 % | 3,77 % | 3,83% | 3,77% | 4% |
P/E ratio | P/E Ratio = Price per share / Earning per Share | 11,90 | 14,60 | 11,90 | 14,60 | 9.0 x |
Sales:
In 2013: sales = revenues of 2013 = 1381,6
In 2014: sales = revenues of 2014 = 1891
Change: 1391 – 1381,6 = 9,4 = 0,68 % → RISE.
Operating profit:
In 2013: OP = 33,1 + 25,5 + 9,8 – 0,4 = 68
In 2014: OP = 39,3 + 16,8 + 18,8 – 0,4 = 74,5
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