This report analyses the accounting policies and financial statements of the following six companies: Tesco PLC, J Sainsbury PLC, Wm Morrison Supermarkets PLC, Booker Group PLC, Ocado Group PLC, and Greggs PLC.They are all amongst the leading companies in the food industry of the United Kingdom (UK). The latest information is used to evaluate the companies’ performance during the accounting years 2012/13 and 2016/17 (last five years). Some financial information was adjusted in order to ensure a fair comparison between the companies, this will be explained later on.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 1.1 Outline
- 1.2 Introduction of companies
- 1.3 Industry Analysis
- 2 Chosen Company: Greggs PLC
- 2.1 Investor Profile
- 2.2 S.W.O.T. Analysis
- 3 Accounting Analysis
- 3.1 Accounting Policies
- 3.2 Adjustments
- 3.3 Red Flag
- 4 Financial Analysis
- 4.1 Profitability
- 4.2 Liquidity
- 4.3 Working Capital
- 4.4 Financial Structure
- 4.5 Investment
- 5 Conclusion and recommendations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to conduct an accounting and financial analysis of UK supermarkets, focusing specifically on Greggs PLC. The analysis utilizes financial statements to evaluate the company's performance and financial health. The study will cover various financial aspects and provide recommendations based on the findings.
- Accounting policies and adjustments of Greggs PLC
- Profitability and financial performance analysis of Greggs PLC
- Liquidity and working capital management of Greggs PLC
- Financial structure and investment analysis of Greggs PLC
- Overall assessment of Greggs PLC's financial health and future prospects
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction: This introductory chapter sets the stage for the subsequent analysis of Greggs PLC. It provides an outline of the study, introduces the company, and offers an overview of the UK supermarket industry. The introduction lays the groundwork by contextualizing Greggs within its competitive landscape, thus establishing the basis for the detailed financial analysis that follows.
2 Chosen Company: Greggs PLC: This chapter delves into a detailed profile of Greggs PLC, providing a comprehensive overview of its investor base and conducting a thorough SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. This section provides critical context for the subsequent accounting and financial analysis by establishing the company's position within the market and highlighting its internal strengths and vulnerabilities. The investor profile gives insights into the types of investors who hold shares in the company, indicating the types of expectations placed upon the firm's management team. The SWOT analysis provides a balanced overview of the company's internal and external environment, outlining the internal capabilities and external forces that are likely to shape its future performance.
3 Accounting Analysis: This chapter examines Greggs PLC's accounting policies, focusing on areas such as going concern assumptions, changes in accounting methods, and accounting terminology. It also analyzes adjustments to the financial statements and identifies any potential "red flags" that might indicate accounting irregularities or other concerns. This in-depth examination of the accounting practices is critical in ensuring the reliability of the financial data used in subsequent analyses. A critical assessment of accounting policies ensures the analysis is based on consistent and accurate information. The identification of red flags allows for proactive consideration of any potential risks or areas requiring further investigation.
4 Financial Analysis: This chapter provides a comprehensive analysis of Greggs PLC's financial performance, liquidity, working capital management, financial structure, and investment performance, using a variety of financial ratios and metrics. Each section delves into specific aspects of financial health. Profitability is examined through gross profit margin, operating margin, net profit margin, return on capital employed (ROCE), and return on shareholders' funds (ROSF), providing a multifaceted view of the company's ability to generate profits. Liquidity is assessed using the current ratio, while working capital management is explored through inventory turnover, receivables days, payables days, and cash conversion cycle. The analysis of financial structure examines gearing ratio and interest cover, shedding light on the company's use of debt and its ability to meet its debt obligations. Finally, investment performance is analyzed through earnings per share (EPS) and price-to-earnings ratio (P/E), providing insights into the company's return on investment for shareholders.
Schlüsselwörter (Keywords)
Greggs PLC, UK Supermarkets, Financial Analysis, Accounting Analysis, Profitability, Liquidity, Working Capital, Financial Structure, Investment, Ratio Analysis, SWOT Analysis, Accounting Policies.
Frequently Asked Questions: Accounting and Financial Analysis of Greggs PLC
What is the purpose of this study?
This study conducts a comprehensive accounting and financial analysis of Greggs PLC, a UK supermarket company. It uses financial statements to evaluate the company's performance and financial health, providing recommendations based on the findings.
What are the key themes explored in this analysis?
The analysis covers several key areas, including Greggs PLC's accounting policies and adjustments, profitability and financial performance, liquidity and working capital management, financial structure and investment analysis, and an overall assessment of the company's financial health and future prospects.
What aspects of Greggs PLC's accounting practices are examined?
The accounting analysis examines Greggs PLC's accounting policies, focusing on areas such as going concern assumptions, changes in accounting methods, and accounting terminology. It also analyzes adjustments to the financial statements and identifies potential "red flags" indicating accounting irregularities or concerns.
How is Greggs PLC's financial performance analyzed?
The financial analysis provides a comprehensive assessment of Greggs PLC's financial performance using various financial ratios and metrics. This includes profitability analysis (gross profit margin, operating margin, net profit margin, ROCE, ROSF), liquidity analysis (current ratio), working capital management analysis (inventory turnover, receivables days, payables days, cash conversion cycle), financial structure analysis (gearing ratio, interest cover), and investment performance analysis (EPS, P/E ratio).
What is included in the introduction chapter?
The introduction sets the stage for the analysis, providing an outline of the study, introducing Greggs PLC, and offering an overview of the UK supermarket industry. It contextualizes Greggs within its competitive landscape.
What is covered in the chapter on Greggs PLC itself?
This chapter provides a detailed profile of Greggs PLC, including a comprehensive overview of its investor base and a thorough SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. This establishes the company's market position and highlights its internal strengths and vulnerabilities.
What are the key findings and recommendations summarized in the conclusion?
The conclusion chapter summarizes the key findings of the accounting and financial analysis of Greggs PLC and offers recommendations based on the results. (Specific details of findings and recommendations would be found within the full report, not just the preview).
What are the keywords associated with this study?
The keywords include Greggs PLC, UK Supermarkets, Financial Analysis, Accounting Analysis, Profitability, Liquidity, Working Capital, Financial Structure, Investment, Ratio Analysis, SWOT Analysis, and Accounting Policies.
What is the table of contents?
The table of contents includes an introduction with an outline, introduction to the companies, and industry analysis. It then covers a chapter focused on Greggs PLC, including investor profiles and a SWOT analysis. Accounting analysis (policies, adjustments, and red flags) and financial analysis (profitability, liquidity, working capital, financial structure, and investment) are detailed in separate chapters. Finally, a conclusion and recommendations chapter concludes the study.
- Citation du texte
- Sabrina Schleimer (Auteur), 2017, Accounting and Financial Analysis of UK Supermarkets, Munich, GRIN Verlag, https://www.grin.com/document/437644
