ipl-logo

Halfords Financial Ratios

2088 Words9 Pages

Introduction

In this essay I will be reviewing the financial position and performance of two companies for a large institutional investor, who is considering investing in one of two companies. The two companies that I will be reviewing are Halfords plc, they both operate in the retail industry; and The Unite group plc, also provides purpose built student accommodation.
Before I go into the financial positions of both companies here is a little background on both Halfords and unite group plc. The Halfords brand was found in 1902 and Halfords plc is now one of UK’s leading retailer of motoring and cycling products and it also operates one of the leading independent garage servicing and auto repair. Halfords operates through two reportable segments retail and auto centres and 85% of its revenue was is derived from the retail division. Unite group plc was founded in 1991 and it …show more content…

If the company has a higher leverage it means the company is too risky although this tends to turn investors away however this can be changed and managed. The gearing ratio is significant to a company and the potential investors. Furthermore it is essential to plan as it affects the company’s ability to maintain a consistent dividend policy during intricate operating periods. Moreover, the gearing ratio reveals the suitability of capitalization of a company. In the year 2015 Halfords had a gearing percentage of 21.54% and 2016 a gearing of 15.89% this is good because not only did the risk decrease the following its due to decrease over the following years if they plan circumspectly . And after looking at their competitors for example b and q that have a higher gearing I can happily say they are a good investment, lower risks means more profits and

Show More
Related
422 Words | 2 Pages

For a company to come up with a business strategy it first needs to come up with a financial plan. In today’s discussion will we talk about three main financial ratios. “Financial ratio is computing ratios that compare values of key accounts listed on a firm’s financial statements.” (2018. P.149)

Read More
679 Words | 3 Pages

The Rogers Internet Network provider company uses financial ratios to assess its performance and financial health. The relevant and irrelevant financial ratio used by Roger’s internet service provider. Relevant Financial Ratios: What are the Financial Rati Liquidity Ratios: This ratio includes the current ratio and quick ratio; liquidity ratios are used to measure the company's ability to meet short-term debts with its current assets.

Read More
2386 Words | 10 Pages

Dutch Bros Inc. SEC 10K Report Seth H. Aamodt ACCT 220: Principles of Accounting Dr. Hakjoon Song April 30, 2024. Dutch Bros. was founded in 1992, beginning operations with a single double-head espresso machine and a pushcart in Grants Pass, Oregon. Despite competing in the quick service beverage industry with market giants like Starbucks, Dutch Bros. has quickly expanded through a unique approach of customer focused service, community outreach, and a focus on quality tasting beverages. Using this approach of high-quality hand-crafted beverages, and superior service, Dutch Bros has since expanded across 16 states, with 831 shops currently in operation. With their expansion yet to spread into the eastern United States, Dutch

Read More
755 Words | 4 Pages

1. Name of company: Costco 2. Total assets: 60.8 billion as of Aug 2021 3. % of assets that are fixed: 63.3% as of Aug 2021 4. % of assets that are current:36.7% as of Aug 2021 5.

Read More
1133 Words | 5 Pages

So, as an example, Groupe Casino states that their gearing ratio is really small, however, according to my fair calculations it is as high as 80%. The discrepancy between company’s annual reports data and data obtained elsewhere (Morningstar, FT, Reuters, etc.). Usually, in annual reports data is at least twice higher and it can confirm Muddy Waters’ claim about financial engineering and accounting legal tricks used. There is almost no information about debt in company’s documents, what can potentially mislead investors.

Read More
1087 Words | 5 Pages

This report will compare Next PLC’s financial performance against that of Burberry Group PLCs in the year of 2017. This will be done using liquidity ratios, financial ratios and efficiency ratios. In 2017 Next made a profit after tax of 635.3 Million Pounds compared to that of Burberry’s which was 287.7 after tax. Whilst it Next may be making more gross profit this does not always suggest that it is doing better. Therefore, with the use of analytical ratios we can contrast the successes and failures of these two companies.

Read More
567 Words | 3 Pages

As one of the leading providers of technology services, products, and solutions, Best Buy is currently doing well in the consumer electronics retail industry. Best Buy’s domestic and international presence gives them the ability to reach customers on an international level and offer them products through their physical as well as e-commerce stores. They are best known for their high-levels of customer interaction through their Geek Squad services, as well as through their online websites and mobile applications. Through our financial analysis of the organization, there are some key topics that we would like to bring to your attention. These key topics will allow us to address why you, as an investor, should choose Best Buy as a company of interest for future investments.

Read More
1217 Words | 5 Pages

Another key ratio that helps to understand a company’s financial leverage is the debt to assets ratio. SQ has a 16.4% debt to assets ratio indicating that they use a relatively low amount of debt and this makes sense as we saw earlier that the company has almost double the amount of assets than it does

Read More
1353 Words | 6 Pages

If a person is looking for a long term investment, they do not have to monitor the day to day activity of the company but must look periodically to make sure it’s consistent and doing what they

Read More
1524 Words | 7 Pages

The stock and risk assessments of the company demonstrate the potential to earn returns on investments with Royal Caribbean. Despite the company’s scandals and income fluctuations, Royal Caribbean offers customer value that in turn has ensured stakeholder returns over the years, especially with the dividend payout policy. Therefore, we recommended purchasing stock with the company with the current undervaluation. This project has allowed us to familiarize ourselves with data, financial terms, and gain an understanding of how to properly assess a

Read More
3531 Words | 15 Pages

This, joined with its great cash-flow, has driven the board to suggest an entire year profit increment of 19.9%. This amplifies its reputation of double digit development, with sales growing by 11.4% in the course of the most recent five years and EPS and dividend per share becoming by 14.7% and 13.5% respectively. (Whitbread Investors,

Read More
1333 Words | 6 Pages

Limited Leverage is good for Business The degree of financial leverage in Frank Smith Plumbing Company is a key fundamental aspect to the loan which it seeks to obtain. It is critical in the sense that it will indicate the financial risks associated with the company based on its financial performance as well as its capital structure. The application of limited financial leverage is thus essential to this business portfolio since it will determine the sensitivity of the company’s available cash position and the given fluctuations in its earnings before interest and taxes (EBIT). Financial leverage has value when it comes to the tax shield and when the assets are being purchased especially with the debt capital.

Read More
3615 Words | 15 Pages

Assignment: Portfolio Income & costs and profit measures of performance Alibaba.com is a China’s B2B e-commerce company which owns a U.S. IPO that worth $25 billion has become the largest B2B e-commerce company in the world in just a few years and barely anyone expect the company can achieve this results so successful. Referring to the Appendix A, the income of Alibaba has been increasing from year 2010 to 2014. This is because of there has a few key factors of success that carried out by the founder of Alibaba.com, Jack Ma to operate the e-commerce business in the global marketplace.

Read More
799 Words | 4 Pages

In general, Trade-Off Theory is another approach on gearing. In addition, this theory recognizes that target debt ratio varies from different organisation (Peake and Neale, 2009). However, the application of the shield tax applies to companies that are safe, with tangible assets, taxable income to shield must to have a peak target ratio.

Read More
1914 Words | 8 Pages

(2002) identified that corporations always tended to achieve the target of leverage levels in the static trade-off theory when increase or retire a larger amount of new capital. The study also found that the higher the market-to-book ratio of corporations, the lower the target of debt ratios. Frank and Goyal (2004) stated that the deviation from the leverage ratio were useful in predicting the adjustment of debt, but not in the adjustment of equity. The study show that when the different between the present value of tax shields and the present value of financial distress cost reached the maximization, the optimal leverage was gained. This study also pointed out that the important of firm size for determining the validity of the trade-off theory.

Read More

More about Halfords Financial Ratios

Related Topics

Open Document