Marks And Spencer Business Analysis

Question 1: attach and Spencer is a leading retail merchant in UK. It is famous for its woodland product and food. As a new finance conductor I excite been asked by the executive board of the fede symmetryn to analyse the fiscal and non fiscal performance of the attach to of croak two categorys and rumourmonger on them. So I go out analyse and input suggest on the monetary and nonfinancial performance of Marks and Spencer for financial course of instruction 2006/7 and 2007/8. fiscal performance: To analyse the conjunctions financial performance, offshoot I brook to center into the various financial balances. In this analysis I have used eight proportions. They ar as fol milds: Liquidity Ratios: 1. certain ratio: The current ratio of the gild for year 2006/7 was 0.527 and for year 2007/8 was 0.594 which was 12.7% slight than the previous year. It means that M& vitamin A;Ss ability to catch up with its bills is not too shake up and if there is a hulking crisis of money arise the company will be in trouble. But as M& group A;S is a retailer and roughly of its sales event is cash sale low liquidity is not a big factor. 2. Quick ratio: The spry ratio for year 2006/7 was 0.268 and for year 2007/8 was 0.348 which was 29.85% more than previous year. The short letter between current and quick ratio says that M&S has a Brobdingnagian inventory which is not a problem as most of them can be good liquidated.

Financial Gearing Ratios: 1. Debt ratio: The debt ratio of the company in 2006/7 was 0.69 which summationd to 0.73 in 2007/8. It was an enlarge of 5.8 %. In 2007/8 sink asset increase by 33% whereas total liabilities increase by 39%. Thats why the debt ratio rise. 2. Debt to justice ratio: In 2006/7 it was 2.26 and 2.65 in 2007/8. The increase was 17.25%. This is sooner high gearing and has gone higher in endure year. The total debt for 2007/8 rose about 39% which increased the gearing. Companys massive capital consumption is a reason for this. 3. Interest insurance coverage: In 2006/7 pursual cover was 7.55 times and in 2007/8 it was 8.7 times which 15.2% is...If you loss to get a exuberant essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.