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Financial Analysis Report

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Table of Contents INTRODUCTION 2 COMPANY PROFILES 3 HMV GROUP PLC 3 THE GAME GROUP PLC 3 VERTICAL ANALYSIS 4 HMV 4 GAME 5 HMV VS GAME 5 TREND ANALYSIS 6 HMV 6 GAME 7 HMV VS GAME 7 HMV: FINANCIAL POSITION VERTICAL AND TREND ANALYSIS 8 GAME: FINANCIAL POSITION VERTICAL AND TREND ANALYSIS 11 HMV VS GAME 12 PROFITABILITY 13 GROSS PROFIT, MARK UP AND NET PROFIT MARGIN 13 HMV 13 GAME 13 RETURN ON CAPITAL EMPLOYED 14 PYRAMID RATIOS 15 RETURN ON EQUITY 16 EFFICIENCY 17 RECIEVABLES, PAYABLES AND INVENTORY PERIODS 17 ASSET AND INVENTORY TURNOVER 19 CASHFLOW RATIOS 20 CASHFLOW ADEQUACY 20 OPERATING CASH CYCLE 21 GEARING 22 DEBT RATIO AND INTEREST COVER 22 INVESTMENT RATIOS 23 PRICE EARNINGS AND DIVIDEND COVER 23 …show more content…

The company performed much better in 2009. HMV VS GAME Looking at the overall performance of both companies from the vertical analysis Game has performed better than HMV over the past years from 2009 to 2011, even though in some areas there has been a slight difference Game was able to control its costs and expenses better than HMV. TREND ANALYSIS CONSOLIDATED INCOME STATEMENT TREND ANALYSIS (BASE YEAR-2009) Continuing operations 2009 2010 2011 Revenue 100.00% 103.06% 58.78% Cost of sales 100.00% 102.86% 59.71% Gross profit 100.00% 105.44% 47.87% Administrative expenses 100.00% 102.25% 69.99% Group trading profit 100.00% 109.36% 20.61% Share of post-tax profits of joint venture accounted for using the equity method 100.00% 150.00% -500.00% Group operating profit 100.00% 109.48% 19.10% Finance revenue 100.00% 33.33% 16.67% Finance costs 100.00% 77.65% 125.88% Profit before taxation 100.00% 112.40% 4.24% Taxation 100.00% 115.20% 33.92% Profit from continuing operations 100.00% 111.31% -7.24% HMV HMV experienced a slight growth rate in 2010. It has cut down its finance costs but at the same time its finance revenue declined its cost of sales increased and expenses. In the year ended in 2011. The company’s profits drastically declined and it needed external finance to boost its operations, this is shown by the percentage of finance

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