AAF044-6 Accounting and Finance Assignment Sample
AAF044-6 Accounting and Finance Assignment Sample
(i) Introduction
In this specific research work, the overall presentation of the study will reflect a lot of perspectives on managing the business operations of the chosen firm. On the other hand, the engagement of the firm is also reflected in order to manage the competition of the firm in a more reliable manner. Besides, First Group plc is the main company in order to operate all the management operations of the firm.
Thus the specification of the firm is also reflected on the basis of a business organisation in order to earn specific knowledge about the financial performance of the selected company. Thus, the presentation of the overall management also needs to be identified in order to establish different managerial decision-making strategies for the firm. Thus, the overall performance appraisal techniques of the firm are also specified in order to elaborate and evaluate all the discussions of the business organisation.
On the contrary, the performance appraisal of the firm will also be compared along with a close competitor of the business organisation in order to manage the competition analysis. Besides, the key performance appraisal of the firm also needs to be specified for both companies in order to identify the effectiveness of the overall market indicators of the firm. The impacts of the overall pandemic periods on the overall presentation of this firm will also be represented in order to manage the overall presentation of the firm. Thus, the statements of both companies also need to be compared for specific organisational behaviour of the firm.
It also specified that both companies have to be listed on the London stock exchange (LSE). The given company is already being managed as per the guidance of the stock exchange thus, the competitor organisation of the same also needs to be equal as presented by the overall presentation of the firm. The reflection of the competitiveness will be specified and managed in order to maintain the overall identification factor for the overall company growth. The discussion on the perceptiveness of identifying the joint venture for the main business enterprise is also specified as per the overall management approaches of the firm.
Thus, the overall presentation of this significant presentation of firm also reflects the overall profit margin capacities and capabilities to retain in this competitive market base. The overall presentations of the two selected firms will also interpret with each other in order to engage the overall establishment of the firm in this current competitive market base. Thus, an overall identification of the factors in order to determine the presence of the firm has also been stated as the main topic of this research work.
(ii) Evaluation of the financial statements and other financial information relating to FirstGroup plc
The overall financial performance of the firm FirstGroup plc has also been managed by the elaborative discussion of different financial ratios that are indicating the financial performance of the firm. Moreover, there are a lot of managerial ratios that can be managed as well as operated in the overall performance appraisal of the business organisation. Thus, in this significant part of the research work, Profitability ratio, Efficiency ratio and Liquidity ratios are managed as well as calculated in order to establish all the effective discussion of the financial position of the firm.
Profitability ratio of FirstGroup plc
| Ratios | Year | ||
| 2022 | 2021 | 2020 | |
| Gross profit | 2,121 | 2,044.0 | 1,801.0 |
| Total Revenue | 4,591 | 4,319.0 | 4,643.0 |
| Gross Margin | 46% | 47.33% | 38.79% |
| Net profit | 682 | 667.0 | 529.0 |
| Total Revenue | 4,591 | 4,319.0 | 4,643.0 |
| Net Margin | 15% | 15.44% | 11.39% |
Table 1: Profitability ratio of FirstGroup plc (Source: created by the learner)
As per the specification of Sciencedirect.com (2023), there are a lot of profitability ratios that can be used in order to identify the overall profitability of the firm. In this particular segment of the study, the gross profit, as well as the operating profit margin of the firm, has been presented in a more elaborate manner in order to identify the overall capacity to determine the profit-earning capacity of the chosen organisation.
As suggested by Ssrn.com (2023), the gross profit ratio of a specific company reflects all the effective evaluation of the overall capacity of earning gross profitability of the firm. Thus after considering all the effectiveness of the firm also need to be included in the overall presentations of the profitable manner. The company can manage to earn a gross profit margin of 46%, 47.33% and 38.79% respectively for the year 2022 2021 and 2020.
Besides, the overall management of the firm also needs to be managed effectively by the management process of the year 2021 as in this year. On the other hand, the company also managed to earn an overall operating profit margin of 15%, 15.44% and 11.39% for the overall presentation of the firm in 2022, 2021 and 2020 respectively manner. Thus represented the overall operating profit-earning capacity of the selected firm in a presentable manner.
Efficiency ratio of FirstGroup plc
The efficiency ratio of any firm can be managed as well as presented as the overall capacity of that firm in a perfectly competitive market chain. Thus, the engagement of the firm can be managed by the overall observation of the firm in a more effective and presentable manner. In the category of efficiency ratio, there are a lot of ratios included that need to be identified for the overall management of the firm. In this specific research work, the inventory turnover, as well as debtors turnover periods, are calculated after including all the factors related to the firm.
| Ratios | 2022 | 2021 | 2020 |
| Inventory | 29 | 29.0 | 63.0 |
| Cost of goods sold | 1,731 | 1,591.0 | 2,210.0 |
| Inventory Turnover | 6.65 | 10.40 | |
| Trade receivables | 295 | 247.0 | 743.0 |
| sales | 4,591 | 4,319.0 | 4,643.0 |
| Debt collection | 23.45 | 20.87 | 58.41 |
Table 2: Efficiency ratio of FirstGroup plc (Source: created by the learner)
The chosen business house FirstGroup plc managed to maintain the inventory turnover period as 8 days, 7 days as well as 10 days respectively in the financial periods of three consecutive financial years starting from 2022. Besides, the firm also managed to establish all effective management processes of the firm in a more effective process.
Thus, the debtor collection period of the business organisation was also established as nearly 58 days, 21 days and 24 days respectively for the year ended 2022, 2021 and 2020. Thus, the effectiveness of the firm can be managed as per the overall presentation of the firm. The organisation has managed the overall presentation of the firm in a more effective manner for the overall presentation in and efficient manner. Thus, the operational activities of the firm are also presented in an effective and frequent manner.
Liquidity ratio of FirstGroup plc
The liquidity of any business can be specified as the capacity of converting any kind of assets in the liquidity approaches of the firm. Besides, there are a lot of related ratios in the group of liquidity ratios of the firm. Thus, the engagement of the firm was also specified as per the overall presentation of the firm in a more effective manner. As per the consideration of Bloomberg.com (2023), the engagement of the current assets as well as current liabilities is the most crucial factor of the firm. The quick ratio as well as the current ratio of the firm has also been stated as per the effective management decision-making for the overall presentation of the firm.
| Ratios | 2022 | 2021 | 2020 |
| Current Asset | 1,567 | 2,787.0 | 2,218.0 |
| Current Liabilities | 2,075 | 3,586 | 2,920.0 |
| Current ratio | 0.76 | 0.78 | 0.76 |
| Current Asset | 1,567 | 2,787.0 | 2,218.0 |
| Inventories | 29 | 29.0 | 63.0 |
| Current Liabilities | 2,075 | 3,586 | 2,920.0 |
| Quick Ratio | 0.03 | 0.77 | 0.74 |
Table 2: Liquidity ratio of FirstGroup plc (Source: created by the learner)
As identified by FirstGroup_plc (2023), the current assets, as well as the current liability of a specific financial period of the firm, need to be established by the engagement of the firm in its capacity to earn the value of the current ratio of the firm. Besides, the management of the firm has also been stated as 0.76, 0.78, and 0.76 for the time period that is identified in the presentation of the enterprise. Besides, the inventory of the firm faces being deducted or excluded from the current assets of the firm to identify all the effectiveness of the firm.
The quick ratio of the firm was also presented as per the overall presentation of the firm. On the other hand, the engagement of the firm also needs to be managed in a more elaborate manner. Besides, the firm can make its quick ratio nearly about 0.3, 0.77 and 0.74 respectively in the selected time periods. Thus it can be said that the business organisation can manage to gain a specific and ideal position as compared to its liquidity approaches in a more elaborate manner. The overall presentation of the current and quick ratios has been established in that above mentioned graph in order to present in a more presentable manner.
(iii) Discussion of the performance of FirstGroup plc with competitor National Express Group PLC
The above ratios shows the performance of both the companies. However, there are other ratios that can be helpful in identifying the efficiency of the company which are presented below:
- Price Earnings Ratio (PER)= “market capitalization / total net income = share price / earnings per share”
- Price to Cash Earnings (P/CE) = market capitalization / (net income before depreciation and amortization)
- Price to sales (P/S) = market capitalization / sales = Share price / sales per share
This multiple compares sales with capitalization (the shares’ value) only. However, sales are attributable to all the company’s stakeholders such as shareholders, creditors, pensioners, Inland Revenue. Through this study, it has been stated that these ratios can also be used to make comparison between these two selected companies.
In this division of the study, the overall experiences of the competitor of the firm have to be managed as well as presenting a more effective manner. The same ratios as per the business’s main organisation have also been calculated for the overall effectiveness of this specific firm to establish all the effective comparisons for the research work.
Profitability ratio of National Express Group PLC
The profitability is the main factor operating all the essential organisational operations of the firm. Moreover, the engagement of the firm also needs to be identified as per the effective decision-making factors in order to determine the analysis of the overall competitors of the organisations. Besides, the effectiveness of the factors also determines all the effective factors of the firm in a more effective manner.
| Ratios | Year | ||
| 2022 | 2021 | 2020 | |
| Gross profit | 1,086 | 681 | 444 |
| Total Revenue | 2,808 | 2,170 | 1,956 |
| Gross Margin | 39% | 31% | 23% |
| Net profit | 401 | 290 | 175 |
| Total Revenue | 2,808 | 2,170 | 1,956 |
| Net Margin | 14% | 13% | 9% |
Table 4: Profitability ratio of National Express Group PLC (Source: created by the learner)
Thus, the National Express Group PLC has been chosen from the overall presentation of the firm in a more reliable manner. This selected business group is the close competitor to the main organisation. Thus, the critical elaboration of the firm is also as per the overall engagement of the firm. More effectively, the effectiveness of the comparison also specified the financial position of the firm in a more highlighted manner.
As all the presentations and evaluations have been managed in a more representative way with the help of the financial ratios of a specific firm, the engagement also needs to be established in a more reliable manner. The gross profit of the firm has been specified as nearly 39%, 31% and 23% respectively.
Thus, the overall presentation of the firm has been calculated as the overall presentation of the firm in a more profitable manner. Besides, the engagement of the firm was also represented on the basis of its operating profit margins. The operating profit has been identified as 14%, 13% and 9% respectively. The presented value on the above-mentioned table has been stated as the organisation managing effectively in order to earn a significant process of profit-gaining concepts in the current scenarios, thus, the overall operating profit has been increasing.
Efficiency ratio of National Express Group PLC
| Ratios | 2022 | 2021 | 2020 |
| Inventory | 32 | 29 | 27 |
| Cost of goods sold | 1,722 | 1,489 | 1,512 |
| Inventory Turnover | 6.78 | 7.11 | 6.52 |
| Trade receivables | 440 | 350 | 315 |
| sales | 2,808 | 2,170 | 1,956 |
| Debt collection | 57 | 59 | 59 |
Table 5: Efficiency ratio of National Express Group PLC (Source: created by the learner)
Efficiency of the selected competitor has been identified as more effective with respect to the main company as per the above-mentioned figures in the table. Inventories turnover days have been specified and nearly about 7 days on average for the time period of consecutive 3 years. Besides, the effectiveness of the debtor’s turnover rate also managed as 57, 59 and 59 for the same financial years.
Liquidity ratio of National Express Group PLC
Liquidity ratio such as current and quick ratios of the firm has been stated in order to identify the competition if the firm in a more effective manner. The current ratio has been analysed ad 0.58, 0.83 and 0.88 respectively. Besides, the quick ratio is also specified as 0.56, 0.81 and 0.86 respectively. The values as identified as the liquidity is also effective as per different accounting standards of the company. Thus, it can be said that the firm has operating more efficiently in order to manage the overall presentation of the firm in a more reliable manner.
(iv) Discussion on the decision of a new joint venture
The joint venture of a specific business organisation can be stated as the most important decision-making for any kind of business organisation in order to manage the overall presentation of the firm. The overall presentations of the firm can also be managed in a more reliable manner in order to identify the overall presentation of the firm. Thus, the overall effectiveness of the key performance indicators can also be elaborated by the firm. Key elements in order to identify the performance appraisal include the identification of the major stakeholders in the First Group plc. Thus, the same needs to be managed by the organisers of the firm. As per the views of Mbaskool.com (2023), the joint venture perspectives of a business also represented the firm’s overall effectiveness. Thus, the overall evaluation can also be represented as per the overall presentation of the firm.
Internal stakeholders
Internal stakeholders of a specific business organisation include the “Board of Directors, Executives, Managers and Employees” of a specific firm. As presented by Zoominfo.com (2023), the analysis of the overall presentation of the firm also needs to be managed by the presentation of the firm in a more reliable manner. The chosen business organisation are managing as well as operating different presentations of the firm.in order to engage different managerial decision-making for the joint venture operations of the company.
External stakeholders
These stakeholders of the firms have also been presented as well as related from different external sources of the business organisation. As appointed by Globaldata.com (2023), the overall presentation of the firm is also specified as per the overall effectiveness of the firm in order to engage different performance indicators of the firm. The external stakeholders are specified as “Existing and Potential Shareholders, Customers, Regulators and Public Authorities, and General Society”. Thus the information of the firm also needs to be managed by the overall efficiency level in the current market scenario. Further it is determined that the firm can easily enhance its capital by influencing its stakeholders for the future purpose.
Conclusion
This research work is based on “FirstGroup Plc” representing the overall performance of the business operations. Moreover, it is reflecting on the establishment of a business organization to engage in comparative analysis of the managerial need to undertake an overall performance with the appraisal techniques used in the company. On the other hand, it has been operated on the basis to elaborate on a competitive analysis with National Express Group Plc.
This report analyzed used different ratios like “Profitability, solvency, and liquidity ratios have been expressed in the analytical report. It can be concluded that the performance of FirstGroup Plc has been identified based on internal and external stakeholders in this organization. Moreover, in this report, the market has been reviewed and the decision-making of new joint ventures has been depicted on the identification of operational analysis to represent the firm’s financial performance.
Reference list
Bloomberg.com, (2023). Markets. Available at: https://www.bloomberg.com/markets/sectors (Accessed on 19 April 2023)
craft.co, (2023). Available at: https://craft.co/firstgroup/competitors (Accessed on 19 April 2023)
FirstGroup_plc, (2023). Company. Available at: https://growjo.com/company/FirstGroup_plc (Accessed on 19 April 2023)
Globaldata.com, (2023). Company-profile. Available at: https://www.globaldata.com/company-profile/firstgroup-plc/competitors/ (Accessed on 19 April 2023)
Mbaskool.com, (2023). Transport-and-logistics. Available at: https://www.mbaskool.com/brandguide/transport-and-logistics/4809-firstgroup.html (Accessed on 19 April 2023)
Owler.com, (2023). Firstgroupplc. Available at: https://www.owler.com/company/firstgroupplc (Accessed on 19 April 2023)
Reportlinker.com, (2023). Competitors. Available at: https://www.reportlinker.com/ (Accessed on 19 April 2023)
Sciencedirect.com, (2023). Brandguide. Available at: https://www.sciencedirect.com/ (Accessed on 19 April 2023)
Ssrn.com, (2023). Index. Available at: https://www.ssrn.com/index.cfm/en/ (Accessed on 19 April 2023)
Zoominfo.com, (2023). Firstgroup-plc. Available at: https://www.zoominfo.com/c/firstgroup-plc/40225200 (Accessed on 19 April 2023)
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