Next Plc Executive Summary

Next Plc. are also a British retail store headquartered in Enderby, Leicestershire. Next Plc. have specialized in the sale of clothing, home goods and footwear. They have an approximate of 700 stores where more than half of these stores are

The liquidity ratios of the firm are slightly below the industry averages. This is due to inventory and accounts receivable making up a significantly larger portion of the current assets than cash and marketable securities. This may be indicative of a problem with inventory management and/or collection on accounts.

This assignment will analyse and compare the financial performance between NEXT and DEBENHAMS by examining their latest Annual Reports. In order to conclude and comment on these two businesses, appropriate ratios will be calculated through the figures in their business financial statements and the information regarding their industry and market conditions in Annual Reports will also be analysed.

Liquidity ratio. The firm’s liquidity shows a downward trend through time. The current ratio is decreasing because the growth in current liabilities outpaces the growth of current assets. The quick ratio is also declining but not as fast as the current ratio. From 1991 to 1992, it only decreased 0.35 units while the current ratio decreased 0.93 units. Looking at the common size balance sheet, we also see that the percentage of inventory is growing from 33% to 48% indicating Mark X could not convert its inventory to cash.

This report is going to use annual report to analyze the Next PLC through multiple point of view for the purpose of advise, and the final user will be the board of NEXT PLC. The report will consist of three parts, firstly, it will illustrate the comparison on performance, financial position and liquidity between year 2010 and 2011, meanwhile compare the same criteria with its competitor - Debenham PLC in 2011. Secondly, Explain and evaluate how the company applies the international accounting standards. In final part, it will have executive summary covering part one and two.

Analysis of the liquidity ratios of Verizon wireless unveiled the fact that the company liquidity position

Liquidity In analyzing liquidity of the company, the current ratio is not very telling of a falling company. The company increased its ratio throughout the period of the income statement thus building upon its company assets and allowing for a 6-1 ratio of assets over its liabilities. This implies the company is still able to operate sufficiently even though it did not make its optimum current ratio of about 8-1. However, when one takes the inventory out of the equation with the quick ratio, the numbers show the true strength of short term liquidity. The numbers are still good, and do not indicate failure – but are

The liquidity of firm can be measured by computing certain ratio’s such as current ratio and acid ratio. For measuring Target Corporation’s 2014 liquidity; the firm’s current ratio and the acid ratio is computed. The company’s current ratio is 0.91 times which is computed by comparing current asset ($11, 573,000) with current liabilities ($12,777, 000) of the year 2014 (TGT Company Financial, n.d). The firm’s acid ratio is 0.26 times which is computed by deducting inventory ($8,278,000) from current assets. The inventory is deducted from current assets because the company has not received any money for the unfinished good or from unsold inventory worth ($8,278,000). To analyze the Target Corporation’s liquidity trend in 2014; the current ratio and acid ratio of 2014 is compared with the 2015’s ratios. In 2015, the firm’s current ratio was 1.20 times and the acid ratio was 0.45 times. These liquidity ratios reflect that the firm’s liquidity was better in 2015 than 2014. (See Table 1).

Liquidity represents a company’s ability to pay its short-term obligations. In the following schedule is the calculation of the ratios that are indicators of the liquidity position of a company.

According to the calculation of ratios, the performance of Cryptic plc can be analysed as following. For the profitability ratios, growth in gross profit and net profit both have negative values. Whilst operating profit growth is -8.2% (2013-2014) and -11.5% (2014-2015), net profit growth is -17.9% and -14.4% respectively. It can be seen that Cryptic plc has had a poor performance in recent years. Reason can be come from the increase of costs incurred. Although the growth rate declined between each period, the company still made profit rather than loss. From the net profit growth, the company may start recovering from the downturn position and it is seeking for fundraising to support business operations.

Liquidity ratios measure the short term ability of a company to pay its obligations and meet their needs for maintaining cash. According to Cagle, Campbell & Jones (2013), “A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy” (p. 44). Creditors, investors and analysts alike are all interested in a company’s liquidity. After computing liquidity

The aim of the following report is to assess the financial activity of Britvic PLC over a sixty months period, from January 2005 until December 2009, in order to make recommendations for a future investment in the company.

First of all it is considered as crucial to find out in which environment the company CHR exists, therefore I decided to use Porter`s five forces model and Pest analysis.

NEXT PLC is a retailing company that primarily operates in the UK, and has been trading for almost 150 years; however, the brand itself was first created in 1982 (Next plc, 2010a). The company offers a range of clothing, accessories, home ware and footwear. The company’s headquarters is located in Leicester, UK and is currently run by Chief Executive Simon Wolfson. NEXT distributes through three main channels: NEXT Retail, operating in more than 500 stores around the UK and Ireland, NEXT Directory, a website and catalogue list for over 2 million active users. And NEXT International, with chains of over 180 stores worldwide including an international website. However, NEXT also

Case Study of Boots Plc Boots Plc have various kinds of stakeholders in their business who do various kinds of jobs suitable for which group there are in. Like any other Plc their stakeholders at least have a say in the business depending their role. E.g. shareholders have a bigger say than the employees who have very little say in the business. Boots Plc have the following external stakeholders in their businesses that play different roles between them are: - Ø Pressure Groups