Student Name: Shubhashree Ramgopal Student Number: 10372516 Module Leader: Enda Murphy Module: Financial Analysis Module Code: B9AC106 Word Count: 438 Financial Analysis Report Of NEXT PLC INTRODUCTION After the merger chain deals with the Kendalls, Hepworth initiated womenswear stores naming it NEXT in 1981. In 1864 before NEXT, Hepworth launched Joseph Hepworth & Son in Leeds which were tailors for menswear. By 1990s, NEXT had widened their clothing categories while undergoing massive global expansion with its outlets count with their brand trading in around 40 different countries. Today, NEXT stands among the top five largest clothing retailers by sales in the United Kingdom competing alongside Supergroup, Marks & Spencer, …show more content…
For this, the current ratio and acid test ratios analyses are done. Current Ratio and Acid Test Ratio: Table 1: Current ratio and Acid Test Ratio of Next PLC Analysis 2013 2014 2015 2016 2017 Current Ratio 1.48 1.75 1.82 1.40 2.29 Acid Test Ratio 1.07 1.29 1.35 0.98 1.66 A business is said to be in a good position if its current ratio is more than 1. Current ratio indicates the ability of a business to repay its short-term borrowings using current assets and current liabilities. Inventory of a business is not considered as a liquid asset since not the whole of inventory good are sold. Acid test ratio comes in the account to calculate the ability of a business excluding the inventories. Acid test ratio is also known as quick ratio since its calculations include only the quickly convertible cash and assets of a business. Lesser the acid ratio value than the current ratio, better is the position of the …show more content…
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