Report on financial comparison of Whibread PLC and Wetherspoon (J D) PLC Course: Financial Accounting & Analysis Name: XIAO LIU Student number: 3323220 Date: 05/11/2014 Word-count: Introduction This paper will according to Whibread PLC and Wetherspoon(J D) PLC’s annual report to analysis enterprise position about these two enterprise. Analysis will be built on ratio of profitability , financial position and liqudity. But ratio has limitations like cannot feedback employee satisfaction, customer satisfaction and ability of managements etc. Whibread PLC has 6 brands include: Premier Inn, Costa, Brewers Fayre, Beefeater Grill, Table Table and Taybams. The main source of revenue is from Costa , hotel and restaurant. The Whibread date from 1742, original was a beer brand. In 1995 acquisition of Costa Coffee and little by little develop this brand become a key brand of PLC. In 2008 launch first hotel of Premier Inn, until 2014, hotel and restaurant exceed Costa become main source of revenue. But …show more content…
Return on equity decline 4.78% is a huge decline, the result is profit from operation decline but total equity was increase 26.69%(169644000~214915000). Return on capital employed in profit from operation decline and total equity increase significantly case just decline 0.73%, it is because non-current liabilities was decline. Operating profit percentage decline 0.70% it is because profit from operation decline and operation cost increase. Interest cover decline 0.03times should pay attention to this, because it is relate to whether obtain loan from the bank, even only a small decline. Earnings per share, current ratio and the quick ratio increase are few good news. Earnings per share increase can attraction and detention a part of investors. Current ratio and the quick ratio are dangerous. Because these two ratio still very