Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Hello, I am looking for someone to write an essay on Financial Analysis for Ipplepen Plc. It needs to be at least 1500 words.As such, the potential of a stock as a profitable investment is often linke
Hello, I am looking for someone to write an essay on Financial Analysis for Ipplepen Plc. It needs to be at least 1500 words.
As such, the potential of a stock as a profitable investment is often linked to the company's ability to maximise shareholder value which in turn, is mirrored in its financial statements. Financial analysis has gained wide acceptance as a tool in assessing the health and well-being of a business entity. This is also considered as a helpful technique which aids investors in ascertaining the gains and the risks involved in buying and holding company's stocks.
This report aims to evaluate the viability of investing in the stock of Ipplepen through the utilisation of an in-depth financial analysis. In so doing, this report will give a brief introduction of the company, its operations, and the recent significant corporate changes. To get a profound evaluation of the financial situation of the organisation, it will diagnose the important aspects of Ipplepen's financial health which include profitability, liquidity, gearing, working capital utilisation, investment, and cash flow.
In order to come up with a comprehensive and accurate assessment of Ipplepen, this report makes use of the company's financial statements which include the consolidate income statement, balance sheet, and cash flow statement for the fiscal year 2006. The required data for the financial ratio computation are transcribed in Microsoft Excel spreadsheets in order to facilitate more accurate and more convenient data processing. For a more adequate assessment, 2005 is used as a comparative year. After the computations, the financial data and computation are double checked in order to ensure correctness. The interpretation of the computed financial ratios are aided by the concepts and theories presented in various finance books, journals, and articles.
3.0. Company Background
Ipplepen Plc operates in the UK fashion industry through the wholesale and retail of clothing, footware, and leisure equipment in the British Isles and Ireland. The business organisation has two core areas of operation: stores, which denotes to its retailing activities of clothing, footwear, and leisure equipment. and Manaton, which refers to its activities as a distribution channel of Manaton products. Aside from these operations, Ipplepen generates income from sub-let property and other property related activities. During 2006, its main operation accounts for 99% of its total turnover. Ipplepen currently employs 3762 part-time and 1786 full-time employees to man its operations.
4.0. Financial Analysis
Financial ratio analysis is a very essential tool in assessing the financial health of a business entity. Financial ratios are grouped into five categories, each showing a different aspect of a company's financial operations. These are profitability ratios,