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.
Inhaltsverzeichnis (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
- 2.1 Clarkson Plc Background Summary
- 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
- 3.1 Accounting Policies
- 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)
- 4.1 Profitability Ratios
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment analyzes the financial performance of Clarkson Plc, a British-based company, and its competitors. The analysis covers a comprehensive range of financial metrics, including profitability, liquidity, efficiency, financial structure, and investment ratios. The main goal is to provide a thorough evaluation of Clarkson Plc's financial position and identify potential strengths, weaknesses, risks, and opportunities. The analysis also aims to provide recommendations for the company's future financial strategy. Here are the key themes and objectives:- Conducting a comprehensive financial analysis of Clarkson Plc and its competitors.
- Evaluating the company's financial performance based on profitability, liquidity, efficiency, financial structure, and investment ratios.
- Identifying potential strengths, weaknesses, risks, and opportunities associated with Clarkson Plc's financial position.
- Providing recommendations for the company's future financial strategy.
- Analyzing the accounting policies and practices of Clarkson Plc to assess their impact on financial reporting.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1 provides an introduction to the assignment and its objectives. It briefly outlines the scope of the analysis, focusing on Clarkson Plc and its competitors. Chapter 2 provides a summary of Clarkson Plc's background, including a review of its financial highlights. This chapter also includes a summary of four key competitors, including Sutton Harbour Holdings Plc, Stobart Group Ltd, Braemar Shipping Services Plc, and Wincanton Ltd.
Chapter 3 delves into the accounting analysis of Clarkson Plc. This chapter examines the company's accounting policies, evaluating the basis of preparation, the statement of compliance, and key accounting judgments and estimates. The analysis covers specific aspects like trade receivables, revenue recognition, operating leases, adjusting items, goodwill, and depreciation. Chapter 3 also assesses potential accounting risks and suggests necessary adjustments.
Chapter 4 focuses on the financial analysis of Clarkson Plc. This chapter examines a wide range of financial ratios, including profitability ratios (ROCE, ROSF, GPM, NPM), liquidity ratios (Current Ratio, Quick Ratio), efficiency/working capital ratios (Inventory Turnover, Receivable Days, Payable Days, Cash Conversion Cycle), financial structure ratios (Gearing, Interest Cover), and investment ratios (Dividend Yield, Dividend Cover, Earnings per Share, Price/Earnings Ratio). This comprehensive analysis provides insights into the company's financial performance and its position within its industry.
Schlüsselwörter (Keywords)
Clarkson Plc, financial analysis, accounting analysis, profitability, liquidity, efficiency, financial structure, investment ratios, competitors, financial performance, accounting policies, accounting risks, financial reporting, financial strategy.- Citation du texte
- Moritz Meyer (Auteur), Shreyans Jain (Auteur), Hujing Zheng (Auteur), Ming-Fong Lee (Auteur), Aishwarya Agarwal (Auteur), 2017, Accounting and Financial Analysis, Munich, GRIN Verlag, https://www.grin.com/document/426429
