Marks And Spencer Business Analysis

Question 1: mark and Spencer is a leading retailer in UK. It is famous for its flavour product and food. As a new finance music director I excite been asked by the executive board of the radio link to analyse the fiscal and non financial performance of the attach to of survive two categorys and rumourmonger on them. So I willing analyse and input signalise on the financial and nonfinancial performance of Marks and Spencer for financial twelvemonth 2006/7 and 2007/8. fiscal performance: To analyse the phoners financial performance, basic I abide to life history into the various financial balances. In this analysis I have used eight proportions. They are as fol scummys: Liquidity Ratios: 1. honest dimension: The current dimension of the social club for year 2006/7 was 0.527 and for year 2007/8 was 0.594 which was 12.7% little than the previous year. It means that M& vitamin A;Ss ability to tolerate its bills is not too noble and if there is a with child(p) crisis of money arise the company will be in trouble. But as M& adenosine monophosphate;S is a retailer and close of its deal is cash sale low liquidity is not a big factor. 2. Quick ratio: The ready ratio for year 2006/7 was 0.268 and for year 2007/8 was 0.348 which was 29.85% more than previous year. The banknote between current and quick ratio says that M&S has a capacious inventory which is not a problem as most of them can be substantially liquidated.

Financial Gearing Ratios: 1. Debt ratio: The debt ratio of the company in 2006/7 was 0.69 which summationd to 0.73 in 2007/8. It was an step-up of 5.8 %. In 2007/8 square up asset change magnitude by 33% whereas total liabilities increase by 39%. Thats why the debt ratio rosaceous. 2. Debt to rightfulness ratio: In 2006/7 it was 2.26 and 2.65 in 2007/8. The increase was 17.25%. This is kinda high gearing and has gone(p) higher in rifle year. The total debt for 2007/8 rose about 39% which increased the gearing. Companys great capital consumption is a reason for this. 3. Interest reportage: In 2006/7 absorb cover was 7.55 times and in 2007/8 it was 8.7 times which 15.2% is...If you ask to get a luxuriant essay, order it on our website: Orderessay

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