Sports Direct Financial Analysis Essay examples

1587 Words Apr 18th, 2013 7 Pages
BUSINESS ACCOUNTING

AC1010

SPORTS DIRECT INTERNATIONAL PLC.

Table of Contents

1.0 Overview………………………………………………………………………………….3

2.0 Company Background………………………………………………………..………….3

3.0 Performance during the last 5 years…………………………………………………….3

4.0 Ratios Analysis……………………………………………………………………………4 * 4.1 Earning per Share Ratio…………………………………………………..4

* 4.2 Quick Ratio……………………………………………………………….5

* 4.3 Current Ratio……………………………………………………………..6

* 4.4 ROCE Ratio………………………………………………………..……..6

5.0 Company Funding and Gearing…………………………………………………………7

6.0 Qualitative Issues………………………………………………………..………………..8

7.0 Conclusion…………………………………………………………...…..………………..8

8.0 References………………………………………………………………..………………..8
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They opened more stores in Europe and they gain better retail and logistic skills. Revenue was £147,62m higher than in 2010. (Sportsdirectplc, 2012)

Share price over the last 5 years

Source:http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=SPD:LSE

4.0 Ratios Analysis

4.1 Earning per Share Ratio
A graph below represents Earning per Share ratio. EPS ratio is used when the company wants to know how are they doing in their businesses from year to year. EPS is shown in pence. (Dyson, 2010) A year 2009 was not so profitable for company as EPS was -2,79p. This means that business was making little money, which was not good for shareholders. However, in 2010 the EPS was quite high, 14,76p, what means the company is making profit and shareholders want to invest in business.

4.2 Quick Ratio

The Quick Ratio also known as Acid Ratio is used by firms to determine liquidity position. It explains if the firm is able to pay all of their current debt liabilities. (Dyson, 2010) The graph above illustrates that over the period from 2007 to 2011 quick ratio was not more that 1, which means that their debts might not be covered all. The graph also indicates that a peak was in 2011.

4.3 Current Ratio

The graph above shows a current ratio. It is used for measuring an ability of the company to pay off
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