This document is about the economic situation of the Irish building material company CRH plc (Cement Roadstone Holdings). CRH plc is the parent company for an international group of diversified building materials businesses which are engaged in the manufacture and supply of a wide range of building materials and in the operation of builders’ merchanting and "Do-It-Yourself" ("DIY") stores. The company is incorporated and domiciled in the Republic of Ireland where it ranks as the largest Irish company
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Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets) Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share
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Ratio analysis Debt ratio Debt ratio (2006-2007) = Total liabilities / Total assets = 10‚170/12‚064 = 0.84 Debt ratio (2007-2008) = 9‚210/11‚769 = Debt ratio (2008-2009) = 10‚003/11‚229 = Debt ratio (2009-2010) = 11‚043/12‚537 = Current ratio Current ratio (2006-2007) = Current assets / Current liabilities = 3‚424/4‚790 = 0.71 Current ratio (2007-2008) = 2‚164/4‚498 = Current ratio (2008-2009) = 1‚326/5‚389 = Current ratio (2009-2010) = 2‚697/6‚085 = Return on sales (ROS) Return on Sales
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Below is a SWOT analysis for Asda plc. Between 1990 and 1994. Read the case and answer the questions underneath. Asda plc is the one of the largest supermarkets for packaged groceries in UK. It is part of the Wal-Mart family in the USA. Asda’s performance combines profitability‚ productivity and a sense of social purpose. The company has good positions and new opening opportunities in terms of site. It operates using the epos systems‚ a natural factor which Tescos and Sainsbury’s are also very
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DIAGEO PLC 1. What do you think about the capital structure policies Diageo has pursued in the past. Do they make sense? How does it compare to Diageo’s competitors’ policies? Which competitors would make for the best comparison? 2. Why is Diageo selling Pillsbury and spinning off Burger King? How might value be created through these transactions? 3. Based on the results of the simulation model‚ what recommendations would you make for Diageo’s capital structure? Does the model capture all of the
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Ratio decidendi and obiter dicta Learning objectives At the end of this module‚ you will be able to: * distinguish between ratio decidendi and obiter dicta. * apply well-established rules to identify the ratio decidendi in a decision. This module is intended as a useful exercise in revision. If you are certain that you understand how to discover the ratio in an opinion‚ you should skim lightly over this material. What is the ratio decidendi? As you probably recall from your studies
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Introduction: Greggs plc (Greggs) is a UK based bakery products retailing company. Through its subsidiaries‚ the company produces and retails takeaway foods that include savouries‚ sandwiches and fresh bakery food products. It also offers health range and regional products with lower fat‚ calorie and salt quantities. The bakery food products offered by the company comprise pasties and sausage rolls‚ pies‚ doughnuts and drinks. It also offers health range and regional products. Greggs operates 1
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PROFITABILITY RATIOS RETURN ON INVESTMENT (ROI): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence‚ the return on capital employed is used as a measure of success of a business in realizing this objective. Return on Investment establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability
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Financial Analysis SITARA CHEMICALS LTD 12/21/2010 GIFT UNIVERSITY YOUSUF KHAN 07208007 MUHAMMAD RAFI 07208004 ANAM MEHMOOD GURAYA 07208014 Contents SITARA CHEMICALS INDUSTURIES
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to take to achieve company goals? This paper will explain what is‚ and how to calculate a weighted average cost of capital of Tesco Plc based on company’s balance sheet1 and cash flow statement.2 The second part will focus on a report on the Tesco’s cash flow over the two year period starting in 2005. In the last part essay will explain what discount rate Tesco Plc. should use when deciding on major investment projects. a) Calculate the company’s weighted average cost of capital and explain/justify
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