The Basic Principles of Samples of Self Competence Essay You Will be Able to Learn From Starting Immediately

The Basic Principles of Samples of Self Competence Essay You Will be Able to Learn From Starting Immediately Nowadays, students who have to comply at any essay writing task consult various essay samples. To compose an impressive short essay, especially during an examination, you have to be in a position to hit the question and supply a straightforward answer while at the identical time observing the most suitable structure of an essay. Another thing you've got to think about is whether the origin of the essay is reliable. In writing an assessment essay, you should be mindful that its goal is to value the subject of your pick. The Importance of Samples of Self Competence Essay My school wasn't very diverse. Palliative care is a typical term in nursing practice. Pick up any high school physics textbook and you'll discover a range of simple equations that explain just about any phenomenon we encounter in the duration of our everyday lives. If you're looking for assistance with your essay then we provide a comprehensive writing service offered by fully qualified academics in your area of study. Samples of Self Competence Essay and Samples of Self Competence Essay - The Perfect Combination Passion is a core competency frequently overlooked. Like other core competencies, it cannot be duplicated easily. Competence, comfort and convenience are 3 main considerations in picking out the lawyer. Building competence in a relationship with your son or daughter is essential. Samples of Self Competence Essay Explained The subject of assignment might seem narrow. A planning stage which leads to the essay outline will help to adhere to the logic and include every required thought retrieved during the practice of brainstorming. It's possible to decide on any myself essay given below in accordance with your need and requirement. For instance, if you're writing a process essay your topic must involve a detailed procedure. Details of Samples of Self Competence E ssay The simplest way to decide on the kind of an essay is to realize the writer's point of view. On such occasions, you can desire to apportion work in conditions of what it is possible to deal with. To know the aim of each and everyone of them is critical as it makes it possible for you to stear your academic paper into the correct direction. Speaking about something an individual used to fail is wise. If you understand, the vital elements of self. It is very important to know a person's values. It's also essential to note that the self isn't just physical, mental, or spiritual, but instead a mix of all three. Becoming critical to oneself is not a simple undertaking, which means you are able to look at a self evaluation paper is aimed to develop the capability to criticize your personality. Personal competencies offer information on people's abilities and the way to improve their abilities. Developing team work cannot be left out. There is additionally a consistent cus tom of micromanaging which communicates an entire Lack of trust in employees. Formative assessment, also called educative assessment, is utilized to help learning. Where to Find Samples of Self Competence Essay There are various cultural beliefs on the planet and it's important to develop the crucial interaction skills through cultural intelligence. Anevaluation essay is an ideal method that may figure out if one has leadership qualities. The science of physics supplies an exemplary instance of simplicity and elegance. EssayEdge is the major application essay editing service on earth. A self-introduction essay is, in most situations, written utilizing the first-person viewpoint. Also, one needs to not fear asking another attorney for another opinion at any location in the approach. My company's organizational imperative is easy and elegant. Among them is a feeling of care that to a larger extent have shaped my career targets. The pursuit of wealth is now a marker in tha t to be truly successful one must start looking into somebody's bank account. According to Kirkpatrick, certain system factors might be present in the working environment of the nurse that might affect the capacity of the nurse to give quality palliative care, for instance, shortage of medications, congestion on the job and work tension amongst others. There's an immediate relationship between the degree of competence of medical care providers and their capacity to supply culturally responsive medical care services. Essay writing is often practiced is schools. Writing an essay accounts for many distinct elements. Writing an essay is a vital role in academe life. Writing a fantastic application essay doesn't need to be a struggle. Lies You've Been Told About Samples of Self Competence Essay Intercultural communication is important in every career that's the reason the art of communicating with people from other cultures is one of the significant skills in life. Culture is a significant facet of life because it has a fantastic influence on individuals. It plays an important role in the day to life of humans and some of the cultures have shaped the society. Doing business without understanding other people, it can be difficult.

Does Poverty In India Have A National Mindset?

Does Poverty In India Have A National Mindset?The topic of poverty in India is one of the most controversial issues around the world. On one hand we have those who have come up with many ideas that portray poverty as one of the worst things in the world, especially in India. And on the other hand, those who blame the poor for their own hardships and poverty.Why the difference between those who do not have a national mindset and those who do? For those who come from a totally different culture, the idea of poverty in India has a negative connotation and in our society, it is a problem that needs to be tackled. There are many things that affect the country and one of them is poverty.This state is largely due to the global market and the way in which it has risen and grown. During the colonial period, India was largely developed by the British. That would account for the high level of development of the country in this period. However, in the present era, the country's development has b een really slow.The development of India would really be possible only if it starts from a place of national mindset. For example, we do not have a national mindset when we say that poverty is not as bad as what some people believe it to be. And there is no such thing when we say that poverty in India is a problem that is deserved, unless and until we admit to the fact that poverty in India is because of those poor who are the cause of their own situations.It is only then that we can start to tackle it and say that it is indeed a problem and must be addressed. This is where the world sees the great problem in India. Yes, the developing world has a national mindset and therefore, the rich and poor debate is not at all seen as something negative. It is a natural thing that is part of the developing world.If you consider that rich countries do not have a national mindset as we do in India, and the richer they become, the less they value their countries, and the less they take care of t he poor around the world, then that is an interesting story. If you think about it, that is also true about Indian society. Only the rich in India care about the poor in India, but as the gap grows between the rich and the poor, poverty gets magnified.No matter what happens, poverty is a very important issue in India. That is why many think that poverty in India is an issue that cannot be tackled and therefore, even the poor themselves are not bothered about it.Poverty is a problem that needs to be addressed, it has become such a problem because of the way in which our society is developed. The country will never be developed unless it starts from the national mindset and that is why people continue to talk about poverty in India. Only then can the country move forward and do good things for the nation.

Army Research Paper Topics

Army Research Paper TopicsYou have the option of choosing from various Army Research Paper topics to suit your specific needs. The Army Research Paper Topic menu is the only place you will find details about those who are involved in military research, and therefore, are well-aware of all the things that researchers have discovered and developed. You can access the subjects that have been developed in these particular research topics in an easy and simple manner. This is how you can avoid any duplication of work in future and can come up with fresh ideas in whatever field you are interested in.You will find several different paper topics in the resource center. You will find various army research projects and theories and various research ideas. For you to be able to see all the latest research in an easy and quick manner, you can access the Research Paper Topic menu. With just one click, you can access all of the Army Research Paper Topics and you can gather the content of the topic s and see the research just in the open.With the Army Research Paper Topics, you will be able to see the contents of the subject matter and their areas of research and development. The most useful part of this Army Research Paper Topic menu is the timeline where you can see the steps that have been taken in terms of the development of military research and development in the last 30 years. The military research is the process of studying the human mind as well as determining the human physical features of soldiers and their quality.The military research paper topics are intended to help you develop knowledge about the human mind and their understanding of the human being, in other words, the human body and its physical characteristics. You will find that the various subjects that are available on the Army Research Paper Topic menu include bio-medical topics, civil/interpersonal topics, and both theoretical and clinical medical topics. In addition, you will find all the topics relati ng to the various types of war.You will find several benefits of research paper topics related to military research and development. First, the topics are aimed at creating knowledge so that the military can use it in their goal to make advances in military technology and so that the research of military matters will never stop. You will also get the opportunity to discover the history of the military and all of the processes that have made the army what it is today.The military research and development research topics can be used for both the public and military needs. It can be used for those in the military who want to see how effective the research can be to help improve the military and to get the education they deserve. You can also use it for individuals who want to improve their knowledge and expertise in different fields of the military that can lead to more opportunities in the military.With the research paper topics that the army has developed, you will be able to get the latest updates on the current research on human psychology and psychological studies. The topics can be used to help improve your skills in areas such as psychology, behaviorism, and various other areas.

Writing A Quality APA Formatting Sample Essay

Writing A Quality APA Formatting Sample EssaySo, you want to get started with your APA Format Sample Essay? Before you take the plunge and dive into your newest career, here are some tips that will help you make sure that you are writing a workable piece of work before you begin. You have to realize that, unlike a student paper, you will not be able to simply just flip a page and have it done in a snap.At first, the process of APA Formatting will take a little bit of time as you work through a well planned term paper, but over time you will see an increase in quality. Keep in mind that, just like term papers, your work does not come without it's ups and downs, and you will need to learn how to deal with them, so keep working through your assignments and you will eventually master the craft.What you are looking for is a style that can help you accomplish your desired goals, whether it is writing for your APA Formatting Sample Essay or the current term paper. Remember, the basics are a ll that you will need, so don't get caught up in the details.Beginning writers tend to focus on one section at a time, such as writing a first paragraph, a main body of text, and then, more detail later. This is the wrong way to write for APA Formatting. Instead, you should break your work up into two separate sections and then break up the sections even further into sections. For example, when writing an APA Formatting Sample Essay, you should split it up into three sections, each about 10-25 pages long.The first section will usually be an introduction. You should then go on to introduce your other sections, such as statistics, a research summary, and then a conclusion. The conclusion section, which will generally be the last section, should contain your ideas and conclusions. Use your example sentences and main body. It is important to remember that, when you work on APA Formatting, you will be putting words in the right places, and if you do not do this, your work is going to be significantly less polished. The goal is to communicate in a clear, concise manner, so if you don't do this, you may end up with a better idea, but with a bland, unprofessional feel. So, instead of getting caught up in detailed worksheets and their accompanying bubbles, you should keep your attention on these areas.So, if you are new to APA Formatting, start by writing the introduction. Make sure to put emphasis on the first ten words, and then your body, statistics, and research summary, and then go on to your conclusion.

Ration Analysis Between Two Companies Essay Example

Ration Analysis Between Two Companies Essay UNIVERSITY OF STRATHCLYDE GRADUATE SCHOOL OF BUSINESS Master of Business Administration International MANAGING FINANCIAL RESOURCES FINANCIAL MANAGERIAL ACCOUNTING ASSIGNMENT October 2008 – September 2009 Prepared by; Submitted On; INDEX No Contents 1 2 3 4 Table of Contents Table of Figures List of Tables Table of Appendices Pg no 3 4 5 6 2 Table of Contents Title 1 2 3 4 5 6 7 8 9 Abstract Profitability Ratios Efficiency Ratios Liquidity ratios Financial Gearing Ratios Investment Ratios Result of the Analysis Limitations of Financial Reports References Pg no 7 10 15 20 22 25 27 27 29 3 Fig No TITLE Pg No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Return on capital employed ratio Return on ordinary shareholders fund Gross Profit Margin ratio Operating Profit Net Profit Margin ratio Inventory holding period(MS) Inventory holding period (J Sainsbury) Debtor payment period Creditors payment period Working capital cycle Current ratio analysis Quick ratio Analysis Gearing Ratio Interest Cover Ratio 10 11 12 13 14 15 16 17 17 18 20 21 23 23 4 List of Tables No 1 2. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Comparison of Ratios Return on Capital Employed Return on Shareholders fund Gross Profit Margin Operating profit margin Net profit Percentage Summary of profitability ratios Inventory holding period Debtor Payment period Creditor payment period Working capital cycle Sales revenue per employee Summary of Efficiency ratios Current Ratio Quick Ratio Summary of Liquidity ratios Leverage Interest cover Summary of Financial structure Dividend cover Dividend yield ratio Earnings per ratio Price/Earning Ratio Summary of Investment ratios TITLE We will write a custom essay sample on Ration Analysis Between Two Companies specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Ration Analysis Between Two Companies specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Ration Analysis Between Two Companies specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Financial statement summary Pg No 8 9 10 11 12 13 14 14 15 16 17 18 19 19 20 21 22 22 23 24 25 25 26 26 27 5 Table of Appendices Title Appendix A Appendix B Financial Statement Marks and Spencer Financial Statement J Sainsbury Page no 30 36 6 1. Abstract The report evaluates the performance and financial position of Marks Spencer plc and J Sainsbury plc. 1. a) Marks and Spencer plcThis UK Group consists of shops that specialize in apparel, food, beauty products and household items. 1. b) J Sainsbury plcThe Company consists of Sainsbury’s, which has a chain of supermarkets, convenience stores and Sainsbury’s bank. 1. ) The Report The report explains financial analysis techniques used to evaluate the performance and the financial position of both the companies for a period of 3 years, from 2006-2008. A vertical and horizontal analysis of financial position of both the companies is done. A series of ratios are used to assess the Profitability, Efficiency, Liquidity, Finan cial gearing and Investment status of the companies. 7 Table 1 FINANCIAL STATEMENT SUMMARY MARKS AND SPENCER 2006 1 Revenue 2 cost of sales 3 Gross profit 4 5 operating profit PBIT interest 7797. 7 4,812. 1 2,985. 6 850. 1 104. 4 745. 7 225. 1 520. 6 1,142. 1 4,116. 5,258. 9 2,007. 8 2013 4020. 8 SAINSBURY 2006 16,061 14,994 1,067 229 125 104 46 58 3,845 8,902 12747 4719 2007 8588. 1 5,246. 9 3,341. 2 1045. 9 109. 2 936. 7 277. 5 659. 2 846. 4 4534. 6 5381 1600. 5 2102. 5 3703 2008 9022 5,535. 2 3,486. 8 1211. 3 82. 2 1,129. 10 308. 1 821 1181. 7 5979. 3 7161 1977. 8 2821. 4 2007 17,151 15,979 1,172 520 43 477 153 324 1,940 7,636 9,576 2707 2008 17,837 16,835 1,002 530 51 479 150 329 1,722 8,393 10,115 2595 6 Profit before tax 7 Tax 8 interest and tax 9 Current asset 10 non current asset Profit after 11 total asset 12 Current liability 13 liability Non current 3877 4799. 2 8596 269 4976 2191 4786 Excluded provisions and deferred tax Excluding minority interest Excluding other receivables Excluding other payables 14 Total liability 15 Total equity 16 receivables 17 Trade Payables 18 Inventory 19 Employees 20 Dividend 21 Dividend per share Earning per share Trade 1,203. 70 1,646. 80 1,956. 70 3,886 4,349 4,935 42 228. 9 374. 3 70310 234. 6 14 168. 24 31. 3 556. 5 67. 9 259. 7 416. 3 75871 310 18. 3 169. 98 39. 1 676. 5 84. 6 242. 6 488. 9 75389 358 22. 3 158. 65 49. 2 396. 3 33 1,419 576 153300 131 9 171. 05 3. 8 330. 8 30 1706 590 146900 140 7. 35 173. 42 19. 2 549. 5 32 1703 681 151000 178 5. 5 174. 70 19. 1 332. 8 22 Number of shares 23 24 Mid market price Closing price 8 Table 2 COMPARISON OF RATIOS SAINSBURY MARKS AND SPENCER 2006 2007 2008 PROFITABILITY RATIOS 1 2 3 4 5 6 7 ROCE ROSF GROSS PROFIT% OPERATING PROFIT MARGIN NET PROFIT 26. 4 43 38 11 6. 7 0. 57 0. 38 27. 9 40 39 12 7. 7 0. 53 0. 27 25. 4 42 39 13 9. 1 0. 60 0. 35 2. 9 1 7 1 0. 4 0. 81 0. 69 7. 9 7 7 3 1. 9 0. 72 0. 50 7. 4 7 6 3 1. 8 0. 66 0. 40 2006 2007 2008 PERCENTAGE LIQUIDITY RATIOS CURRENT RATIO QUICK RATIO EFFICIENCY RATIOS INVENTORY 8 9 10 11 12 HOLDING DEBTOR PAYMENT 28 2 17 13 29 3 18 14 32 3 16 20 14 1 35 -20 13 1 39 -25 5 1 37 -22 PERIOD CREDITOR PAYMENT PERIOD WORKING CAPITAL CYCLE Sales Revenue per employee FINANCIAL STRUCTURE 110904. 6 113193. 4 119672. 6 104768. 4 116752. 9 118125. 8 13 14 LEVERAGE INTEREST COVER 63 8. 1 56 9. 6 59 14. 7 50 1. 8 34 12. 1 31 10. 4 INVESTMENT RATIOS 15 16 17 18 DIVIDEND YIELD EARNINGS PER SHARE DIVIDEND COVER PRICE/EARNING RATIO 2. 52 31. 3 2. 2 17. 8 2. 71 39. 1 2. 1 17. 3 5. 63 49. 2 2. 3 8. 1 2. 72 3. 8 0. 4 87. 1 1. 34 19. 2 2. 3 28. 6 1. 76 19. 1 1. 8 17. 4 9 Financial ratio classification Ratios are grouped into 5 categories which are related to a particular financial performance. In this report, the following categories have been used; 2. )Profitability ratios – A profitability ratio gives an idea to the degree of success in attaining profit and also to compare the financial viability of a business to others in the industry. 2. a) Return on capital employed ratio (ROCE)-The ratio expresses the relationship between the operating profit during a period and the long term capital invested in the business in that period. ROCE Operating profit Share capital+Reserves+Noncurrent liabilities RETURN ON CAPITAL EMPLOYED (ROCE %) 2006 2007 MARKS SPENCER ROCE J SAINSBURY ROCE 850. 1*100/(1203. +2013) 26 229*100/(3886+3877) 3 1045. 9*100/(1646. 8+2102. 5) 28 520*100/(4349+2269) 8 2008 1211. 3*100/(1956. 7+2821. 4) 25 530*100/(4935+2191) 7 Table 3 ROCE 30 25 20 MARKS SPENCER J SAINSBURY % 15 10 5 0 28 26 25 8 3 7 2006 2007 YEAR 2008 RETURN ON CAPITAL EMPLOYED (ROCE %) Fig 1 AnalysisThe capital employed has increased by 16. 5 % in 2007 and 27. 4 % in 2008, but the R OCE has increased only 7. 7 % in 2007 and there is a decline of 10. 7 % in 2008. The capital employed has decreased by 14. 7 % in 2007 and increased by 7. 7 % in 2008,but the ROCE has increased by 166. 7 % in 2007 and decreased by 12. % in 2008. 10 2. b) Return on Shareholders fund ratio (ROSF) – The ratio compares the amount of profit available for owners with the owner’s average stake in the business for a particular period. ROSF Net profit Ordinary Share capital+Reserves This ratio takes a rather narrower view of the capital employed, restricting the investment made by the shareholders only. And it measures how efficiently the company is using the shareholders fund to generate returns. RETURN ON ORDINARY SHAREHOLDERS FUND (ROSF) 2006 2007 MARKS SPENCER ROSF J SAINSBURY ROSF 520. 6*100/1203. 7 43 58*100/3886 1 659. 2*100/1646. 40 324*100/4349 7 2008 821*100/1956. 7 42 329*100/4935 7 Table 4 ROSF 45 40 35 30 MARKS SPENCER J SAINSBURY % 25 20 15 10 5 0 43 40 42 7 1 2006 2007 YEAR 2008 7 RETURN ON ORDINARY SHAREHOLDERS FUND (ROSF) Fig 2 AnalysisIn 2007 with an increase in shareholders fund of 36. 8 %, there is a decrease of 7 % in ROSF, while in 2008 with an increase of equity by 18. 8 %, the ROSF has gone up by 5%. The equity has increased by 11. 9% in 2007 and by 13. 5% in 2008. But there is a marked increase in ROSF in 2007, which is almost 6 times/600% of that in 2006,but it has remained the same in 2008 also. . c) Gross Profit Margin ratio-This ra tio compares the gross profit to the sales revenue during the same period. Gross Profit Margin Gross Profit * 100 Sales Revenue 11 GROSS PROFIT MARGIN % 2006 2007 MARKS SPENCER GROSS PROFIT MARGIN J SAINSBURY GROSS PROFIT MARGIN 2985. 6*100/7797. 7 38 1067*100/16061 7 3341. 2*100/8588. 1 39 1172*100/17151 7 2008 3486. 8*100/9022 39 1002*100/17837 6 Table 5 GROSS PROFIT 39 39 40 35 30 25 MARKS SPENCER J SAINSBURY % 20 15 10 5 0 38 7 7 6 2006 2007 YEAR 2008 Gross Profit Margin ratio Figure 3 Analysis; The sales revenue in 2007 for MS has gone up by 10. % and the gross profit by 11. 9%, compared to 2006. This is because of an increase in the selling price and that the cost of sales increased only at a lower rate compared to the selling price. The sales revenue of Sains compared in 2007 and 2008 has gone up by 6. 8% and 4% respectively, compared to the previous years. While the gross profit in 2007 to that of 2006 shows a hike of 9. 8%, but a decline of (14. 5%) in 2008 when compared with 2007. The decline in gross profit is attributed to a hike in the cost of purchases and a decline of gross profit margin in 2008 as compared to 2007 by a value of (14. %) and suggests a rise in cost of purchase without a rise in selling price. 2. d) OPERATING PROFIT MARGIN -This ratio also known as coverage ratio, compares the operating profit to the sales revenue for a period. Operating Profit margin Operating profit * 100 Sales Revenue 12 OPERATING PROFIT MARGIN % 2006 MARKS SPENCER OPERATING PROFIT MARGIN J SAINSBURY OPERATING PROFIT MARGIN 850. 1*100/7797. 7 11 229*100/16061 1 2007 1045. 9*100/8588. 1 12 520*100/17151 3 2008 1211. 3*100/9022 13 530*100/17837 3 Table 6 OPERATING PROFIT MARGIN 14 12 10 8 MARKS SPENCER J SAINSBURY 4 2 0 2006 1 % 6 11 13 12 3 2007 YEAR 2008 OPERATING PROFIT MARGIN Fig 4 Analysis; J Sainsbury has a much greater % of operating profit compared to MS in 2007 of 127, but it is reduced to 1. 9% in 2008. Even a drastic increase in operating profit in 2007 yields only much less margin compared to MS. The reports of 2006 shows a very high administration expense which was due to the additional head count and was brought down in 06-07 with a result of an increase in operating profit margin of 200% in 07, which is remarkable. But the revenue in 2007 has gone up only by 6. 7% which attributes to a hike in cost of sales. 2. ) Net profit Margin ratio-The ratio relates to the net profit, after taxes, of the company and relates to the sales revenue. Net Profit Margin Net Profit * 100 Sales Revenue 13 NET PROFIT PERCENTAGE 2006 MARKS SPENCER NET PROFIT PERCENTAGE J SAINSBURY NET PROFIT PERCENTAGE 520. 6*100/7797. 7 7 58*100/16061 0 2007 659. 2*100/8588. 1 8 324*100/17151 2 2008 821*100/9022 9 329*100/17837 2 Table 7 NET PROFIT PERCENTAGE 9 9 8 7 6 MARKS SPENCER J SAINSBURY % 5 4 3 2 1 0 2006 2007 YEAR 2008 0 2 2 7 8 Net profit Margin ratio Fig 5 Analysis; Even though the net profit of the Sainsbury hikes by 200% in 2007, this is only 10% profit of MS. But this profit hike could not be maintained by Sains in 2008, which is due to the increase in cost of sales and the increase in operating expenses. The year 2006 was a model year for Sainsbury with cost cutting on over heads and head count. Summary of Profitability Ratios; SAINSBURY MARKS AND SPENCER 2006 2007 2008 PROFITABILITY RATIOS 1 2 3 4 5 ROCE ROSF GROSS PROFIT% OPERATING PROFIT MARGIN NET PROFIT 26. 4 43 38 11 6. 7 27. 9 40 39 12 7. 7 25. 4 42 39 13 9. 1 2. 9 1 7 1 0. 4 7. 9 7 7 3 1. 9 7. 4 7 6 3 1. 8 2006 2007 2008 PERCENTAGE Table 8 14 Analysis- Both the companies have maintained their level of profitability throughout the 3 years. But comparing between the two companies, Marks Spencer has done much better than Sainbury. Considering the fact that supermarkets tend to operate on a low profit margin explains the poor rating of profitability ratios of Sains. As far as Sains is concerned 2007 was an excellent year with ROCE, ROSF and Operating profit increasing upto 150%. 3) Efficiency ratios- These ratios examine the ways in which various resources of the business are managed and also about collections, cash flow and operational result. 3. )Inventory holding period- The ratio gives the average number of days taken by the business to sell a piece of stock and it is desirable for this period to be as short as possible. The comparison of ratio is only meaningful when comparing similar type of companies or with the prior inventory turnover of the same company. Inventory holding period Inventory(stock)*365 cost of sales I NVENTORY HOLDING 2006 MARKS SPENCER INVENTORY HOLDING J SAINSBURY 374. 3*365/4812. 1 28 576*365/14994 2007 416. 3*365/5246. 9 29 590*365/15979 13 2008 488. 9*365/5535. 2 32 681*365/16835 15 Table 9 14 INVENTORY HOLDING INVENTORY HOLDING INVENTORY HOLDING PERIOD 32 31 30 DAYS 29 28 27 26 MARKS SPENCER 2006 28 2007 29 2008 32 Inventory holding period Marks Spencer Fig 6 15 INVENTORY HOLDING PERIOD 15 14. 5 14 DAYS 13. 5 13 12. 5 12 J SAINSBURY 2006 14 2007 13 2008 15 Inventory holding period J Sainsbury Fig 7 Analysis; The inventory holding period varies with different types of businesses. Sainsbury, a supermarket holds more inventories which is noted from the difference in corresponding current ratio and quick ratio. The inventory holding period of Sains is much lower than Marks and can be attributed to the difference in type of goods sold in these stores. . b) Receivables payment period( debtors turnover)- The ratio measures the length of time taken by the debtors to settle the account with the company. Receivables payment period Trade receivables(debtors)*365 Revenue(sales) DEBTOR PAYMENT PERIOD 2006 2007 MARKS SPENCER DEBTOR PAYMENT PERIOD J SAINSBURY DEBTOR PAYMENT PERIOD 42*365/7797. 7 2 33*365/16061 1 DEBTOR PAYMENT PERIOD 67. 9*365/8588. 1 3 30*365/17151 1 Table 10 2008 84. 6*365/9022 3 32*365/17837 1 16 RECEIVABLES(DEBTOR) PAYMENT PERIOD 3 3 2. 5 2 2 DAYS 1. 5 1 1 0. 5 0 MARKS SPENCER J SAINSBURY 1 1 3 2006 2 1 2007 3 1 008 3 1 Fig 8 Analysis; Trade receivables deals with goods or services sold on credit from the company. As noted, the payment in Sains takes place in less than a day i. e. the payments are mainly in cash. In the case of Marks, a credit allowance of up to 3 days is seen. Again this is not a high value in the industry and the risk of nonpayment by the customers is less. 3. c) Payables payment period or creditor turnover – The ratio measures the time taken by the company to make payments to its customers. Payables payment period Trade payables(creditors)*365 Purchase or cost of sales . CREDITOR PAYMENT PERIOD 2006 MARKS SPENCER CREDITOR PAYMENT PERIOD J SAINSBURY 228. 9*365/4812. 1 17 1419*365/14994 2007 259. 7*365/5246. 9 18 1706*365/15979 39 Table 11 2008 242. 6*365/5535. 2 16 1703*365/16835 37 CREDITOR PAYMENT PERIOD 35 CREDITOR PAYMENT PERIOD PAYABLES PAYMENT PERIOD 39 40 35 30 25 DAYS 20 15 10 5 0 MARKS SPENCER J SAINSBURY 2006 17 35 2007 18 39 2008 16 37 17 18 16 35 37 Fig 9 17 Analysis; It should also be noted that the trade payables of Sains is much higher than its inventory holding period. This is quite significant that the company can invest the cash from the sales much before it pays its suppliers. When compared,MS has a lower payable period and higher inventory holding period, which is not beneficial to the company. 3. d) The working capital cycle-The working capital gives the length of the time cash spends are tied up in the current assets. Working capital cycle Stock turnover+ debtors turnovercreditors turnover WORKING CAPITAL CYCLE 2006 MARKS SPENCER WORKING CAPITAL CYCLE J SAINSBURY WORKING CAPITAL CYCLE (28+2)-17 13 (14+1)-35 2007 (29+3)-18 14 (13+1)-39 -25 2008 (32+3)-16 20 (15+1)-37 -22 Table 12 ROUND FIGURE ROUND FIGURE -20 WORKING CAPITAL CYCLE WORKING CAPITAL CYCLE 20 20 15 10 5 DAYS 0 -5 -10 -15 -20 -25 MARKS SPENCER J SAINSBURY 2006 13 -20 -20 -25 2007 14 -25 2008 20 -22 -22 13 14 Fig 10 Analysis;As this ratio measures the time cash is away from the business, it is best to have shorter number of days. A negative number in the working capital happens when the company purchase the goods and sell them and the sales cash is received quicker than the company has to pay its creditors. Even though the number is negative, there is positive cash flow and this can be a model business. But the company should see that it keeps up the goodwill of the suppliers also,since the average creditor payment date is high. 18 3. f) Sales Revenue per employee; It measures the amount of revenue generated by a particular business resource-Labour. The ratio measures the productivity of the employees and a high value suggests an efficient management of the work force. Sales Revenue per employee 2006 2007 MARKS SPENCER Sales Revenue per employee J SAINSBURY Sales Revenue per employee 7797. 7m/70310 110904. 6 16061m/153300 104768 8588. 1m/75871 113193. 17151m/146900 116752. 9 2008 9022m/75389 119672. 6 17837m/151000 118125. 8 Table 13 Analysis; Both the companies have maintained a steady increase in this ratio. But in the year 2007, Sains had reduced the number of employees by (4. 3%), but the revenue hiked by 6. 8%. This is commendable. And also in 2007, with an increase of 2. 8% of employees, the company was able to hike the revenue by 4%. Summary of Efficiency Ratios; SAINSBURY M ARKS AND SPENCER 2006 2007 2008 EFFICIENCY RATIOS INVENTORY 2006 2007 2008 1 2 3 4 5 HOLDING DEBTOR PAYMENT 28 2 17 13 29 3 18 14 2 3 16 20 14 1 35 -20 13 1 39 -25 15 1 37 -22 PERIOD CREDITOR PAYMENT PERIOD WORKING CAPITAL CYCLE Sales Revenue per employee 110904. 6 113193. 4 119672. 6 104768. 4 116752. 9 118125. 8 Analysis; Table 14 Here again the type of business matters a lot with supermarket having a smaller inventory holding days and so on. But the efficiency of MS is showing a decline as far as inventory holding and creditor payment period is analysed. A negative working capital is far but advantageous for Sains by investing the cash from sales much ahead of paying the creditors. 19 ) Liquidity Ratios-These ratios measure the ability of the firm to meet the short term financial obligations and give an idea of financial health. 4. a)Current ratio- This ratio compares the current assets to the current liabilities. The drawback of current ratio is that the inventory in the current asset may be difficult to quickly liquidate . Current ratio Current Asset Current Lia bilities CURRENT RATIO 2006 MARKS SPENCER CURRENT RATIO J SAINSBURY CURRENT RATIO 1142/2007. 8 0. 57 3845/4719 0. 81 2007 846. 4/1600. 5 0. 53 1940/2707 0. 72 2008 1181. 7/1977. 8 0. 1722/2595 0. 66 Current ratio Table15 Current Ratio Analysis 0. 66 2008 0. 6 J SAINSBURY MARKS SPENCER 0. 72 2007 0. 53 0. 81 2006 0. 57 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8 0. 9 Current Ratio Fig 11 AnalysisThe number should be above 1 and if its exceeding 2, its usually a sign of strength for the company. The reason for a low current ratio is because of the type of business, but both the companies are maintaining an average, with a slight advantage for Sainsbury. 4. b) Quick Ratio-The ratio compares the current assets (excluding inventory) by current liabilities. The minimum level for this ratio is 1. 0 times/1:1, where current assets (excluding inventory) equals current liability. 20 Quick Ratio Current asset less Inventory stock Current liability QUICK/ACID TEST RATIO 2006 MARKS SPENCER QUICK RATIO J SAINSBURY QUICK RATIO (1142-374. 3) /2007. 8 0. 38 (3845-576) /4719 0. 69 2007 (846. 4-416. 3) /1600. 5 0. 27 (1940-590) /2707 0. 5 2008 (1181. 7-488. 9) /1977. 8 0. 35 (1722-681) /2595 0. 4 QUICK/ACID TEST RATIO Table 16 Quick Ratio Analysis 0. 4 2008 0. 35 J SAINSBURY MARKS SPENCER 2007 0. 5 0. 27 2006 0. 69 0. 38 0 0. 1 . 2 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8 Quick Ratio Analysis; Fig 12 The low ratios could be attributed to the type of business with inventory forming a major part of the asset and also to a high short term debt and a high investment of capital on inventory. But this ratio ignores stock. Also a vast development is seen in MS which would have increased the liabilities 21 Summary of Liquidity Ratios SAINSBURY MARKS AND SPENCER 2006 2007 2008 LIQUIDITY RATIOS 2006 2007 2008 1 2 CURRENT RATIO QUICK RATIO 0. 57 0. 38 0. 53 0. 27 0. 60 0. 35 0. 81 0. 69 0. 72 0. 50 0. 66 0. 0 Table 17 Analysis; Both the companies are nowhere near the ideal as far as current ratio is concerned, but Sains has a better value and could be due to only high stock of inventory. Even in quick ratio, both the companies are not touching the ideal ratio of 1. The ratios are decreasing in the case of Sains, which is a very bad sign of poor liquidity, but Marks is able to maintain or rather increase the liquidity in 2008. 5) Financial Gearing-The level of gearing of a business shows the extent to which it is financed from sources that require a fixed return. 5. ) Gearing ratio-The ratio measures the non current liabilities to the long term capital structure (share capital+ Reserves + Non current liability) of a business. Gearing ratio Long term borrowing(debt) Long term borrowing + Equity LEVERAGE 2006 MARKS SPENCER LEVERAGE 2013*100/(2013+1 203. 7) 63 2007 2102. 5*100/(2102. 5+1646. 8) 56 2269*100(2269+4349) 2008 2821. 4*100/(2821. 4+1956. 7) 59 2191*100/(2191+4935) J SAINSBURY 3877*100/(3877+3886) 50 LEVERAGE 34 Table 18 31 LEVERAGE 22 GEARING RATIO 31 2008 59 J SAINSBURY MARKS SPENCER YEAR 34 2007 56 50 2006 63 0 20 40 LEVERAGE 60 80 Analysis; Fig 13 There is a significant decrease (38%) in gearing in Sains because of the reduction in long term borrowing by 43% in the 3 years. With a decrease in gearing ratio, the debt of the company and hence the risk of the company also comes down. MS is a much highly geared group and any decrease in the operating profit will bring down the ROSF ratio by a higher degree. 5. b. )Interest cover ratio-The interest cover ratio measures the operating profit to the interest payable . Interest cover Profit before interet and tax Interest expense INTEREST COVER MARKS SPENCER INTEREST COVER J SAINSBURY INTEREST COVER 2006 850. /104. 4 8. 1 229/125 1. 8 2007 1045. 9/109. 2 9. 6 520/43 12. 1 Table 19 2008 1211. 3/82. 2 14. 7 530/51 10. 4 INTEREST COVER INTEREST COVER RATIO 2008 2008, 10. 4 2008, 14. 7 2007, 12. 1 2007, 9. 6 2006, 1. 8 YEAR J SAINSBURY MARKS SPENCER 2007 2006 2006, 8. 1 0 5 10 15 INTEREST COVER Fig 14 23 Analysis; The ratio gives the value of how many times operating profit is to the int erest paid by the business and MS is much ahead of Sains in 2006. But Sains has made an increase of 572% in 2007, which is incomparable. MS also has made an improvement of 53 % in 2008. Summary of Financial Gearing Ratios SAINSBURY MARKS AND SPENCER 2006 2007 2008 FINANCIAL STRUCTURE 2006 2007 2008 1 2 LEVERAGE% INTEREST COVER (times) 63 8. 1 56 9. 6 59 14. 7 50 1. 8 34 12. 1 31 10. 4 Table 20 Analysis In the financial gearing ratios, Sainsbury has shown a marked improvement in the past three years with leverage going down and the interest cover increasing. But the leverage of MS is at a high level throughout which is not good comparatively. 24 6) Investment ratios- The investment ratios that are designed to help investors assess the returns on their investment are distinct from those that are used to interpret financial statements. The ratio also tells us about the dividend policy and the prospects for future growth of the business. 6. a) Dividend cover ratio –The ratio compares the profit for the year to the dividend announced for the year. Dividend cover ratio Profit for the year Dividend announced for the year DIVIDEND COVER 2006 MARKS SPENCER DIVIDEND COVER J SAINSBURY DIVIDEND COVER 520. 6/234. 6 2. 2 58/131 0. 4 DIVIDEND COVER 2007 659. 2/310 2. 1 324/140 2. 3 2008 821/358 2. 3 329/178 1. 8 Table 21 Analysis; The profit for the year which is the earnings available for the dividend cover is compared to the actual dividend. MS is maintaining a steady dividend cover along the 3 years , whereas Sains has shown an increase of more than 400% in 2007. 6. b) Dividend yield ratio- The ratio compares dividend per share to the market value of the share Since this ratio provides a direct measure of the return on investment in the shares of a company, investors can assess the merits of different investments. Dividend yield ratio Dividend per share * 100 Market value per share DIVIDEND YIELD RATIO 2006 2007 18. 3*100/676. 5 2. 71 7. 35*100/549. 5 1. 34 2008 22. 3*100/396. 3 5. 63 5. 85*100/332. 8 1. 76 MARKS SPENCER DIVIDEND YIELD J SAINSBURY DIVIDEND YIELD 4*100/556. 5 2. 52 9*100/330. 8 2. 72 DIVIDEND YIELD RATIO Table 22 Analysis; A drop in the dividend yield ratio in the case of Sains is contributable to the increase in Market price of the shares. Sainsbury has shown a higher profitability in the year 2006-07 and the share price has doubled. But the group was not able to maintain the dividend yield or the mark et price in 2007-08, and seen 25 here is a drastic drop. The case is not different for MS with a sharp fall of share price. 6. c) Earnings per share – The ratio compares the profit for the year to the number of ordinary shares in issue. Earnings per share Profit for the year Number of ordinary shares in issue EARNINGS PER SHARE MS EARNINGS PER SHARE JSAINSBURY EARNINGS PER SHARE 2006 523. 1/168. 24*100 31. 1 58*100/171. 05 3. 4 2007 659. 9*100/169. 98 38. 8 324*100/173. 42 18. 7 Table 23 2008 821*100/158. 65 51. 7 329*100/174. 7 18. 8 EARNINGS PER SHARE Analysis; As it does not value much to compare the earning per share of two companies, the EPS for both the companies can be compared with their previous values. Both the companies show an increasing EPS which need not necessarily be due to an increased profit. In the case of MS in 2008 the ordinary shares issued has been down considerably and the EPS has gone up by 33%. 6. d) Price /earning ratio- The ratio compares the market value of a share to the earnings per share Price/Earnings ratio(P/E ratio) Market value per share Earnings per share PRICE/EARNING RATIO 2006 MARKS SPENCER PRICE/EARNING RATIO J SAINSBURY PRICE/EARNING RATIO 556. 5/31. 3 17. 8 330. 8/3. 8 87. 1 2007 676. 5/39. 1 17. 3 549. 5/19. 2 28. 6 2008 396. 3/49. 2 8. 1 332. 8/19. 1 17. 4 PRICE/EARNING RATIO Table 24 Analysis; The value of this ratio tells us how many times the share value is higher than the EPS. An unusually high P/E value of Sainsbury in 2006, is due to a fall in EPS value and an optimistic view of the investors that the company will perform better in the future.. But the decreasing P/E ratio of MS indicates a low share price compared to the EPS. But it should be noted that the earning per share of MS has steadily increased and doubled in the past 5 years, from 2003 to 2008. 26 SUMMARY OF INVESTMENT RATIOS SAINSBURY MARKS AND SPENCER 2006 2007 2008 INVESTMENT RATIOS 2006 2007 2008 1 2 3 4 DIVIDEND YIELD EARNINGS PER SHARE DIVIDEND COVER PRICE/EARNING RATIO 2. 52 31. 3 2. 2 17. 8 2. 71 39. 2. 1 17. 3 5. 63 49. 2 2. 3 8. 1 2. 72 3. 8 0. 4 87. 1 1. 34 19. 2 2. 3 28. 6 1. 76 19. 1 1. 8 17. 4 Table 25 Analysis; A fall in the EPS gives way to the abnormally high P? E ratio in 2005-06. And the high P/E ratio suggests the investors evaluation and assessment of the future. But both companies have shown a steady increase in EPS in 2007-08. The drop in P/E ratio in 2007-08 could be a result of the financial crisis wave and the sub prime crisis, which had its first taste in mid 2006. 7)RESULT OF THE ANALYSIS; On the basis of profitability, Marks and Spencer has done much better than J Sainsbury. There is a margin of 68% and 20% on an average for ROCE and Net profit for the past three years between the two companies with Marks and Spencer leading the show. But in the Efficiency ratios Sainsbury is much ahead of Marks and the financial structure also has improved to a considerable value for Sainsbury in these 3 years. As far as Investment ratios are studied, both the companies have shown a decreasing order, which could be explained by the global turmoil. The analysis provides an in-depth knowledge of the financial status and performance of the 2 companies. Results interpreted in Abstract) 8)Limitations of Financial Reports- The published financial report provide only a starting point for understanding the entity’s performance. And it should not be the last resort. The managers who prepare the reports know that the statements will be read by potential critics, who can harm the company. So they are unlikely to present the unvarnished truth. o The reports are historical in nature and highlight the past performance of the company, with very little information about the future prospects of the company . 27 o o o o o o o o o o Inflation affects the information in the reports as many of the company’s assets are undervalued because in a fairly high inflation. The company only discloses minimum amount of information which rarely satisfies the need of the users. The assets appear in the balance sheet at their original cost and it is assumed that the purchasing power of money will remain the same. The report restricts themselves to matters that can be measured in monetary terms only. The income appears on the profit and loss account when a consignment of goods is despatched and this is much before the cash is received. Unless one understands the accounting ‘jargon’, the report may be incomprehensible. As companies adopt different methods of financial accounting methods, an inter company comparison is inevitably distorted. The annual reports are often published several months after the financial year-end, by which time the information is to some extent outdated. The statements could be deliberately distorted by creative accounting. Many organisations regard these statements as marketing documents to promote the company and the management. 28 9)Reference: 1. 2. 3. 4. 5. 6. 7. 8. 9. http://uk. finance. yahoo. com/q/pr? s=mks. , company profile of Marks and Spencer http://uk. finance. yahoo. com/q/pr? s=SBRY. L, company profile of J Sainsbury plc http://en. wikipedia. org/wiki/Marks__Spencer, history of Marks and Spencers ‘Accounting and finance for non specialist’,Atrill. p,McLaney. E,Pearson Education Limited,UK,pg 27-181 ‘Financial and Management Accounting’, Ciancanelli. P, Dunn. J, Koch. B, Stewart. M, University of Strathclyde Business School, pg 17-115 www. jsainsbury. uk, Annual Report-2007 2008 www. marksandspencer. com, Annual Report-2007 2008 http://www. studentinvestor. org/downloads, 29 30 31 32 33 34 35 36 37 38 39 40 41