The purpose of this report is to present the best company from the peer group based on accounting and financial analysis. The peer group contains five companies from the industrial goods and services sector – Clarkson Plc, Stobart Group Ltd, Braemar Shipping Services Plc and Wincanton Ltd that listed on the main market of London Stock Exchange and Sutton Harbour Holdings Plc, which is listed on the Alternative Investment Market of London Stock Exchange. On the basis of analysis conducted, we highly recommend Clarkson Plc as a company worth of investment. The data used for production of this report is historical data which are publically available.
In the summary section of this report, we will provide detailed background of the selected company, including its financial highlights as well as comparison with other four peers’ financial performance.
The accounting analysis presents an overview of the accounting policies in the peer group.The financial analysis is the last part of this report containing profitability, liquidity, efficiency analysis and financial structure. Lastly, a comparison of investment figures is provided.
Table of Contents
1 Introduction
2 Summary Section
2.1 Clarkson Plc Background Summary
2.1.1 Financial Highlights
2.2 Competitors Summary
2.2.1 Sutton Harbour Holdings Plc
2.2.2 Stobart Group Ltd
2.2.3 Braemar Shipping Services Plc
2.2.4 Wincanton Ltd
3 Accounting Analysis
3.1 Accounting Policies
3.1.1 Basis of Preparation and Statement of Compliance
3.1.2 Key Accounting Judgments and Estimates
3.1.2.1 Trade Receivables
3.1.2.2 Revenue Recognition
3.1.2.3 Operating Leases
3.1.2.4 Adjusting Items
3.1.2.5 Goodwill
3.1.2.6 Depreciation
3.2 Accounting Evaluation
3.3 Potential Risk and Necessary Adjustments
4 Financial Analysis
4.1 Profitability Ratios
4.1.1 Return on Capital Employed (ROCE)
4.1.2 Return on Sharholders Funds (ROSF)
4.1.3 Gross Profit Margin (GPM)
4.1.4 Net Profit Margin (NPM)
4.2 Liquidity Ratios
4.2.1 Current Ratio
4.2.2 Quick Ratio (Acid Test)
4.3 Efficiency/ Working Capital Ratios
4.3.1 Inventory Turnover
4.3.2 Receivable Days
4.3.3 Payable Days
4.3.4 Cash Conversion Cycle
4.4 Financial Structure
4.4.1 Gearing
4.4.2 Interest Cover
4.5 Investment Ratios
4.5.1 Dividend Yield
4.5.2 Dividend cover
4.5.3 Earnings per Share (EPS)
4.5.4 Price/ Earnings Ratio (P/E Ratio)
5 Conclusion and Recommendations
References
Appendix
- Quote paper
- Moritz Meyer (Author), Shreyans Jain (Author), Hujing Zheng (Author), Ming-Fong Lee (Author), Aishwarya Agarwal (Author), 2017, Accounting and Financial Analysis, Munich, GRIN Verlag, https://www.grin.com/document/426429
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