AAF044-6 Accounting and Finance Assignment Sample
AAF044-6 Accounting and Finance Assignment Sample
Section 1
Introduction
The financial possessions and the performances of first Group Plc have indicated the liquidity and the current financial possessions of this transport service in the UK. The interpretation of the financial ratio helps to understand the total growth rates of this business market. The interpretations of the ratio analysis help to evaluate the total debt and the equity rates of this market. Here also evaluated the market structures of these transport services compared with the other competitors of this business market.
Overview of FirstGroup Plc
First Group Plc is one of the transport services. It also operated in different types of segments. This system provided all the transportation systems among the students. The total price-earnings ratio of this business market is Considered 6.46. The total amount of market capitalization of this business organization is 768.18 Million. The total yield rate of these transportation systems in this business market have considered that, be 1.83%.
This service provides easy and Convenient Mobility in the business market and by using the different types of business strategies, it helps to enhance the quality types of business services in the economy (firstgroupplc.com, 2023). This industry included different types of public support. The mission of this transport service is to create different types of solutions, that help to reduce the number of Complexity levels in the economy and on the other hand, helps transactions to be easier. The McCain visions of the transportation business services are that it provides transporting customers for the health, business and education levels.
National express group plc is one of the competitors in this business market. The number of employees in this business market is considered that, 46,200. The total rate of the revenue growth of this transportation system has indicated, 2.81 billion. The sales performances or the revenue growth rates of this first group plc have increased than these logistic services in the economy. The total number of employees in this industry is considered to be 31,064.
There are different competitors in this logistics industry. Here chooses national express group Plc as the Competitor in this business market. In this transportation, business services include different types of stakeholders, one is the internal stakeholders and the other is the external stakeholders in the business market. The customers, investors and the government and others play vital roles in enhancing the business possessions in the market.
Section 2
Interpretation of the Financial Ratio
| 2022 | 2021 | 2020 | ||
| Gross Profit x 100
Total Revenue |
Gross profit | 2,121 | 2,044 | 1,801 |
| Total Revenue | 4,591 | 4,319 | 4,643 | |
| GPM | 46% | 47% | 39% | |
| Net Profit x 100
Total Revenue |
Net profit | 11 | 10 | 337 |
| Total Revenue | 4,591 | 4,319 | 4,643 | |
| NPM | 0.2% | 0.2% | 7.3% |
Table 1: Gross profit ratio of FirstGroup Plc (Source: Self-Created)
Here, also described the financial integrations of the Gross profit ratio over the past three years. That helps to understand the financial health of their business market. Here, consider the two types of ratios in the business market. As stated by of Nugroho, (2022), one is the gross profit ratio and the other is the NPM. The GPM values of these transportation systems help to understand the development of these business organizations. For 202, the GPM values of this business market have indicated that, 46%. The total raters of the GPM values for 2021 have indicated that, 47%. The total value of the GPM rates of this business industry is 39%.
Based on the above section, it can be said that. The financial performance of this Company will be better in 2021, than the other Years. This transportation company will be more profitable in 2021 because the total “sales performance of this business market” will enhance in the other years. During the pandemic situation, there will be reduced numbers of gross profit values. As stated by the gross profit values of this business industry will be decreased for three more years. This will affect the transportation industry in 2020 but the rates of the NOM values of this transportation business industry have indicated 0.2% for 2021 and 2022. But the rates of the NPM values of this business market have been considered 7.3%. It also indicated the high value of the business market.
Gearing ratio 0.830.230.22
| solvency ratio | 2022 | 2021 | 2020 | |||
| Gearing ratio | Total Debt
Total Equity
|
Total debt | 737 | 2,492 | 3,503 | |
| Equity | 885 | 1,154 | 1,177 | |||
| 2.16 | 2.98 | |||||
| Interest coverage ratio | EBIT
Interest expense
|
EBIT | 58 | 60 | 45 | |
| Interest expense | 250 | 277 | 245 | |||
| interest coverage | 0.18 |
Table 2: Solvency ratio (Source: Self-Created)
The Solvency positions of this business firms evaluated the total rates of the interest expenses, to values of the gearing ratio of this business market. The “gearing ratio” of this business market helps to highlight the total amount of the numbers of debt values and the total numbers of equity values of this business market.
The interpretations of the “gearing ratio” of this “logistics business” industry are important because it helps to understand the financial health of the business market. If the gearing ratio of this business market is low, it positively impacts the Growth of the economy. On the other hand, as opined by Sunandar and Permana, (2023), if there will be a high gearing ratio in this business market it indicates that there will be high risks in the business market.
The gearing values for the three years have indicated that, 0.83, 2.16, and 2.18. The gearing values of this business market will be higher in 20220, than in the other currency years. For this reason, it can be said that the high gearing values have a negative impact on the growth rates of this business market. The values of the interest coverage for the last three years have indicated that, 0.23, 0.22 and 0.11. During the pandemic situation, the financial health of this business market will decrease in 2020.
Quick Ratio 1.83373494
| Liquidity Ratio | 2022 | 2021 | 2020 | ||
| Current Ratio | Current Asset
Current Liabilities |
Current Asset | 3,834 | 8,293 | 8,444 |
| Current Liabilities | 2,075 | 3,586 | 2,920 | ||
| Current ratio | 1.847710843 | 2.312604573 | 2.891780822 | ||
| Quick (Acid) Ratio | (Current Asset inventories)
Current Liabilities |
Current Asset | 3,834 | 8,293 | 8,444 |
| Inventories | 29 | 29 | 63 | ||
| Current Liabilities | 2,075 | 3,586 | 2,920 | ||
| 2.304517568 | 2.870205479 |
Table 3: liquidity position of the First Group Plc (Source: Self-Created)
The liquidity positions of the First Group Plc have covered the current assets, the total values of the Current liabilities that help to understand the total amount of the current debt and the current equity market of these business industries. As opined by Kalbuana et al. (2022), the liquidity ratio is two types one is the “current ratio and the other is the quick ratio”.
The values of the quick ratio for 2022, 2021 and 2020 have been considered 1.833, 2.304, and 2.87. As stated by McCormack, (2022), the liquidity possessions of these logistic services will be goods in 20209, then the other years. The liquidity positions of this market will be goods, it highlighted the development of this Company. On the other hand, the current ratio values for 2022 have indicated 1.83. The values of the current ratio for 2002 and 2021 have developed at 2.31 and 2.89. It can be said the profitability growth market of this First Group plc has increased in 2021 more than the other years.
Section 3
Comparative Analysis
This part is going to evaluate the Comparative analysis of this business market. Based on the opinion of Otu and Nabiebu, (2022), the comparative analysis helps to understand the financial “health conditions of the business market” and also describes several business issues that negatively impact the growth of the economy. Based on the opinion of Isherwood, (2022), this first group plc has different competitors like SNCF group and national Express Group Plc.
In comparison with the different Competitors of this transportation business service, it can be said that the financial Conditions of this business market will be high, which impacts the values of this business market. Based on the opinion of Smith et al. (2022), National Express Group plc is the Competitor of this First Group Plc market in the UK market.
| 2022 | 2021 | 2020 | ||
| Gross Profit x 100
Total Revenue |
Gross profit | 1,086 | 681 | 444 |
| Total Revenue | 2,808 | 2,170 | 1,956 | |
| GPM | 39% | 31% | 23% | |
| Net Profit x 100
Total Revenue |
Net profit | 243 | 102 | 334 |
| Total Revenue | 2,808 | 2,170 | 1,956 | |
| NPM | 8.7% | 4.7% | 17.1% |
Table 4: Gross profit ratio of Express group plc (Source: Self-Created)
Total GPM values for the last three years have been 39%, 31% and 23%. The financial positions of these competitors will be very low for 2020. That was one of the global Crisis situations in the business market. A comparison of the GPM values with the First Group Plc indicates that there will be high rates of the GPM values of this business market Comparison with the Competitors. That positively impacted the growth of the economy.
Based on the opinion of Lin et al. (2022), the amount of the market capitalization of this business market will be enhanced than these sectors. From above the table, it can be noticed that the total rate of the NPM values of this business market has indicated that, 8.7% for 2022, 4.7% for 2021 and 17.1% for 2020. Net present values of this business market will be higher than the first group plc.
That is considered one of the major business issues of this first group, Plc. as stated by Alkaraan et al. (2022), the management of this business industry should use the different types of “business strategies” that can help to develop this business market.
The solvency of this business market helps to identify the overall development of the amount of the total debt and the total values of the equity rates. To the discussion of Kuzey et al. (2022). The Computed values of the gearing ratio help evaluate the comparison with the main transportation business industry. The gearing values of 2022 have been highlighted that, 0.64. The values of the gearing ratio of this business market have indicated 0.87.
The gearing values for 2020 have been Considered 0.89. In comparison with this business market, it can be considered that the amount of the total debt positions of this first group plc will be enhanced than the other business market. The “interest coverage ratio” for the last three years of this business market has been considered 0.57, 0.22 and 0.18.
The high amount of “debt values of this business market” will be high, which is considered one of the important issues of this business market. As opined by Chen et al. (2022), the cost of the fuel rate and the expenditures of the maintenance costs of these services is considered one of the major limitations of this business market.
As stated by Gerassimidou et al. (2022), the development of road capacity is one of the important “business strategies” that help to make the overallimprovements of this services in UK market. To compete with this express group plc, this logistic business industry should develop its growth rate, which helps to enhance the global business market in the economy.
Quick Ratio 0.561326658
| Liquidity Ratio | 2022 | 2021 | 2020 | ||
| Current Ratio | Current Asset
Current Liabilities |
Current Asset | 929 | 1,004 | 1,100 |
| Current Liabilities | 1,598 | 1,207 | 1,244 | ||
| Current ratio | 0.58135169 | 0.831814416 | 0.88424437 | ||
| Quick (Acid) Ratio | (Current Asset inventories)
Current Liabilities |
Current Asset | 929 | 1,004 | 1,100 |
| Inventories | 32 | 29 | 27 | ||
| Current Liabilities | 1,598 | 1,207 | 1,244 | ||
| 0.807787904 | 0.86254019 |
Table 5: Liquidity ratio of the National Express Group Plc (Source: Self-Created)
Comparison with these business industries, it can be said that the liquidity possessions of this business market will be lower than the first group plc. The Values of the Current ratio for 2022 have indicated that, 0.58, 0.83 and 0.88. The values of the quick ratio for the last three years have indicated 0.56, 0.80 and the 0.86. Based on the Opinion of Garvey et al. (2022), there will be low rates of the liquidity ratio of these business services in the UK. The liquidity position rates of the first group Plc have increased. Because the numbers of the total inventories of this business market will be enhanced, that helps to increase the market expansion growth.
Section 4
Role of the Joint Ventures
Venture capitalists play a vital role in the corporate decision-making process. They are indicated the by the different “stakeholders in the economy”. As stated by Hu et al. (2022), it helps to combine their resources to fulfil the main goals and the business objectives of this business market. For the development of the financial possessions of the business market, the stakeholders in the organizations play a crucial role to enhance the business market.
Based on the opinion of Brunner et al. (2022), they are considered the major stakeholders in the stock market. One is the internal stakeholders and the others are the external stakeholders. As stated by Kontovas et al. (2022), their internal stakeholders include the investors, board of directors, managers and employees and others.
This service offers simple and practical mobility in the corporate world, and by implementing various business techniques, it contributes to raising the standard of commercial services provided to the economy. Various forms of governmental support were present in this sector. This transport company’s goal is to provide various sorts of solutions that facilitate simpler transactions while also assisting in lowering the amount of economic complexity.
The board of directors is responsible for making the decision process, which helps to enhance the profitability and Growth rates of this first Group plc. One of the significant things that might improve the decision-making process is not the Creditors. This company’s profitability is dependent on its suppliers. That promotes this company sector’s development and raises its level of production. The employees are one of the important factors that help to enhance the overall improvement process.
As opined by Nguyen et al. (2022), the joint ventures also impacted the Company’s external stakeholders. The Creditors are not one of the crucial factors that can help to enhance the decision-making process. The profit of this business depends on the suppliers. That helps the growth and helps to increase the production level of this business industry. The joint ventures also impacted on the different types of the stakeholders that help to developed of these services.
Conclusions
Based on the above study, here evaluated the financial conditions of this first group plc over the past three years, which helped to understand the financial conditions of this business market. The ratio analysis of this logistic industry helps to evaluate the priority rate and the liquidity possessions and helps to understand the debt and the equity level, here also analyzes the roles of the joint ventures that help to increase the decision-making process.
That also affected the stakeholders in the Company. The interpretations of the ratio analysis aid in assessing the market’s overall debt and equity rates. Understanding this company market’s financial positions benefits from comparative study. Additionally, the market structures of these transport services were compared to those of the other players in this industry.
Reference list
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Website
firstgroupplc.com, (2023), FirstGroup is a leading private sector provider of public transport. Available at: https://www.firstgroupplc.com/[Acessed on: 24th April, 2023]
Nationalexpressgroup.com (2023) Driving mobility
Solutions Available at: https://www.nationalexpressgroup.com/ [Accessed on: 24th April, 2023]
Statista.com (2023), Annual revenue of FirstGroup from FY 2009 to FY 2021 Available at: https://www.statista.com/statistics/955370/firstgroup-annual-revenue-united-kingdom-uk/[Acessed on: 24th April, 2023
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