Financial Management Case

Contents

Introduction        

Financial Management        

Ratio        

Profitability        

Gross profit        

Net profit        

Return on Equity        

Return on capital employed        

Cost of sale / Overhead        

Liquidity Ratio        

Current Ratio        

Quick Ratio        

Working Capital Ratio        

Efficiency        

Stock Turnover Ratio        

Fixed Assets Productivity        

Debtors Collection Period (Days)        

Creditors Payment Period (Days)        

Cash Operating Cycle (Days)        

Investment (Profitability Based on Investment)        

Dividend cover        

Dividend Yield and Price Earnings Ratio        

Average share price        

Earnings per share        

Gearing        

Gearing        

Interest Cover        

Conclusion        

Task B        

Question 1        

Accounting Rate of Return        

Pay Back Period        

Simple Payback Period        

Discounted Payback Period        

Discounted Cash Flow        

Net Present Value        

Internal Rate of Return        

Question 2        

Question 3        

Question 4 Divisible        

The optimal investment policy        

The resulting total NVP from investment policy        

Question 5   Indivisible        

Question 6        

Appendix        

Question – 1 Three Key Capital        

Question 1 Simple Payback period        

Question 1 Discounted Cash Flow Project X        

Question 1 Discounted Cash Flow Project Y        

Question 1 Net Present Value (NVP)        

Question 1 Internal Rate of Return:        

Question 4 Divisible        

Project X        

Project Y        

Question 5 Indivisible        

Bibliography        

Online Reference        

Introduction

In the fast growing modern world, there are number of company launched every year but all the companies are really going well for that we need analysis the financial performance of the company. Based on financial ratio we can easily identify the actual situation of any company. This report based on Past four years of financial performance of Monitor PLC Company in the first part contain ratio analysis of past four years compared with similar size competitor and business sector norms and the second part contain Monitor PLC Company planned to invest on two project so which is the one best choice and more helpful for their organisation in future.