Accounting &Financial Management Report
Accounting &Financial Management Report
From: Mo Jian hui
To: Board of director
Executive summary According to the Global Powers of Retailing Report in 2011, Ahold now lies at the number 25 of world. It is making the plan to achieve the goal to be No.10 by acquisition Delhaize Group (DG) or WM Morrison Supermarkets Plc. (Morrisons).This report will analyze and compare these three companies by using CORE to find out their advantages and disadvantages of financial performance, then give advice to help Ahold choose the best one acquisition target company. Firstly, this report gives the general contexts about three companies, including the internal and external environment. These companies are retailers, whose headquarters lie in the Netherlands, Belgium and UK; they all get or are going to get benefits convenient shopping market. However they all have suffered from the 2008 financial crisis. Secondly, the report will analyze the overview performance of three companies by using the key figures. Ahold had a best performance in terms of profits, followed by Morrisons and DG. As for the cash flows, the abilities of Ahold and DG to generate cash from operating activities were becoming weak, while Morrison had the increasing operating cash flow. For the total debt, Ahold had a good new compared to DG and Morrison. Thirdly, the report will compare the different ratios to evaluate their financial performances. In profitability, Morrisons is good at collect operating profit but does not have competitive product price. The costs of sale is low in Ahold and DG,the difference is that this advantage of DG is become weak. In liquidity and solvency, Morrisons has the strongest ability in liquidity, while Ahold and DG is expected to be bad in the future. In working Capital, both Ahold and Morrisons are good at manager the source, while DG is less ability to do that. As for investment, Ahold and Morrisons had increasing earnings per share but DG showed opposite trend.
From: Mo Jian hui
To: Board of director
Executive summary According to the Global Powers of Retailing Report in 2011, Ahold now lies at the number 25 of world. It is making the plan to achieve the goal to be No.10 by acquisition Delhaize Group (DG) or WM Morrison Supermarkets Plc. (Morrisons).This report will analyze and compare these three companies by using CORE to find out their advantages and disadvantages of financial performance, then give advice to help Ahold choose the best one acquisition target company. Firstly, this report gives the general contexts about three companies, including the internal and external environment. These companies are retailers, whose headquarters lie in the Netherlands, Belgium and UK; they all get or are going to get benefits convenient shopping market. However they all have suffered from the 2008 financial crisis. Secondly, the report will analyze the overview performance of three companies by using the key figures. Ahold had a best performance in terms of profits, followed by Morrisons and DG. As for the cash flows, the abilities of Ahold and DG to generate cash from operating activities were becoming weak, while Morrison had the increasing operating cash flow. For the total debt, Ahold had a good new compared to DG and Morrison. Thirdly, the report will compare the different ratios to evaluate their financial performances. In profitability, Morrisons is good at collect operating profit but does not have competitive product price. The costs of sale is low in Ahold and DG,the difference is that this advantage of DG is become weak. In liquidity and solvency, Morrisons has the strongest ability in liquidity, while Ahold and DG is expected to be bad in the future. In working Capital, both Ahold and Morrisons are good at manager the source, while DG is less ability to do that. As for investment, Ahold and Morrisons had increasing earnings per share but DG showed opposite trend.