First Group plc
Ratio Analysis summary
FirstGroup
Plc-Financial Ratios
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Profitability Ratios
|
2011
|
2010
|
2009
|
2008
|
2007
|
ROI % (Operating)
|
366.26
|
347.3
|
359.1
|
386.87
|
515.63
|
Liquidity Ratios
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Quick Ratio
|
0.71
|
0.72
|
0.53
|
0.7
|
1
|
Current Ratio
|
0.77
|
0.78
|
0.6
|
0.84
|
1.09
|
Debt Management
|
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Interest Coverage
|
68.78
|
64.61
|
70.31
|
82.39
|
941.99
|
Asset Management
|
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Total Asset Turnover
|
1.18
|
1.1
|
1.15
|
1.28
|
1.6
|
Receivables Turnover
|
11.1
|
10.42
|
10.28
|
9.67
|
9.88
|
Inventory Turnover
|
69.84
|
62.35
|
63.92
|
63.36
|
62.44
|
Accounts Payable Turnover
|
21.39
|
20.95
|
22.01
|
21.24
|
22.88
|
Property Plant & Equip
Turnover
|
2.94
|
2.7
|
2.86
|
3.15
|
3.73
|
Cash & Equivalents Turnover
|
17.78
|
19.22
|
21.91
|
14.37
|
12.67
|
Per Share
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Cash Flow per Share
|
1.16
|
0.94
|
1.04
|
0.84
|
0.74
|
Book Value per Share
|
1.94
|
1.86
|
1.63
|
1.58
|
1.36
|
First Group Company has been
unable to maintain a liquid position as the current and quick ratio has been
declining since 2007, cited by Mergent Online (2012). This has made difficult
for the company to maintain strategic alliances with its suppliers and obtain
inventory on short-term basis, which in turn, has affected all other aspects of
the financial management.
From the financials and ratio analysis, we can also say that company used
most of his profit in paying off the bank loans and other debts as there is
huge reduction in the amount of Long term liabilities by (3331.9£m - 2888.2£m)
443.7£m that is mainly because of
reduction in bank loans and other payables of the company, cited by Bragg (2006).
Return on
Equity analysis concludes that the return on the equity of the company is
reduced in the year 2011 as compare to the year 2010. It has also been observed
that large portion of profit earned in the year 2011 is contributed towards the
equity of the company that directly affected per share divided of the
organisation.
BIBLIOGRAPHY
BOOK
- Bragg, S. (2006) " Business Ratios and Formulas" .3rd Edition. Wiley Corporate. USA.
WEBSITES
- Mergent Online (2012) " First Group plc" [online] Available at: http://www.mergent.com/searchresults.asp?cx=001435189050236951772:ddk6-8igemi&cof=FORID:11&q=FIRST%20GROUP%20Company%20plc&sa=Search (Accessed 20/05/2012).
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