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Atrill. P & McLaney. E, (2004), ‘Accounting and Finance for
Transcript of Atrill. P & McLaney. E, (2004), ‘Accounting and Finance for
Atrill. P & McLaney. E, (2004), ‘Accounting and Finance for Non-Specialists’, 4th edit, UK: Pearson Education Limited.
Drake. P. P, et. al, (2013), ‘Financial Analysis Statement’, Canada: John Wiley & Sons, Inc.
Financial Analysis, UK: Select Knowledge limited.
Biafore. B, (2004), ‘Online Investing Hacks: 100 Industrial-Strength Tips & Tools’, US: O’Reilly Media, Inc.
Financial-dictionary.thefreedictionary.com. 2013. Financial Dictionary.
[online] Available at: http://financial-dictionary.thefreedictionary.com
[Accessed: 25 Nov 2013].
Axel Tracy, ratio analysis fundamentals; how 17 financial ratios can
allow you any business on the planet
Atrill, P. and McLaney, E. (2008) Accounting and Finance for Non-Specialists. Sixth Edition. Pearson Education. Prentice Hall. Financial Times. Harlow.
Carluccio’s Financial Report (2010) Financial Statement of Carluccio’s Restaurant Group [online] Available at: http://www.carluccios.com/about-us/aim/financial-statements/CA233_R&A2010_270110_Low.pdf [Accessed 29.10.2013]
Carluccio's (2013) Working Towards A More Sustainable Future [online] Available at: http://www.carluccios.com/about-us/sustainability [Accessed 30.11.2013]
Iyengar, A (2008) Hotel Finance. First Edition. Oxford University Press, New Delhi
Lindridge, A., Ali, H., Francis, G. and Lucas, M. (2011) Understanding Marketing and Financial Information. Second Edition. The Open University. Walton Hall. Milton Keynes.
Comparison of Inventory Turnover
Comparison of Asset Turnover
Financial Ratio Analysis of Carluccio’s Restaurant
for 2010 and 2011
It is an efficiency ratio
Relationship between borrowing and capital employed
The higher gearing ratio, the higher risk
Gearing ratio increased from 25.2% in 2010 to 26.4% in 2011
A bit higher risk in 2011 compared with 2010
Ability to pay off short-terms debts
Compares a company’s liquid assets with short-term liabilities
Doesn't give positive impression but company situation is positive comparison of competitor Prezzo and Carluccio's progress is not increase like competitor Bella Italia
Doesn’t have enough assets to pay liabilities but company current ratio increasing its positive indicates and competitor Prezzo current ratio has decreased but competitor Bella Italia has a positive current ratio
Asset Turnover Ratio
Slightly decreased from £3.92m in 2010 to £3.89m in 2011.
The assets have been used more productively and efficiently in 2011.
Negatively increased in 2011, as it takes longer to sell.
Managing assets more effectively than in 2011, as it takes less time.
Therefore, the results indicated the balanced market value.
Analyse how efficiently a company uses its assets and liabilities and manages its resources.
Calculate and analyse:
Inventory Turnover period
Receivables Collection period
Asset Turnover Ratio
Shows overall performance and efficiency
Gross profit margin
Lost the power of controlling the cost of inventories
Shows a bad sign for the company
Net profit margin
Increase net profit gives extra capacity and flexibility during the hard times
Return of capital employed
Increasing value of the business
The company was incorporated in 1986 and is based in London, United Kingdom by Antonio Carluccio
The financial statements have been prepared using International Financial Reporting Standards (IFRS) as adopted by the European Union and in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’.
Carluccio's PLC operates restaurants and an online food shop in the United Kingdom.
Carluccio’s total turn over in 2010 was 74.4 m which is increased by 14% in 2011 84.7 million.
The earning before interest and tax increased 14% to 9.3m 2011 and was 8.3 million in 2010.
The profit for the period before taxation was 5.865 Million 2011 and 5.214 million 2010.
The company effective tax rate for the year was 14% lower than the prior year( 2010 37%).
Despite on going global economic uncertainties the company continues its expansion opening 6 branches in different part of UK.
Analysis of the report
NIKITA JOSHI (931795)
KAMILLA MUSTAEVA (707195)
RIJU CHACKO (943286)
RANDEEP SINGH (938614)
XIUXIA XUE (866233)
DINESH RAJ GOTAME (851482)
Return on Equity Comparisons
Prezzo: decreases from 14.5% in 2010 to 14.9% in 2011.
Bella Italia: decreases from 24.8% in 2010 to 17.9% in 2011.
Higher ROE than a competitor
More efficiency of Carluccio’s of using its equity
Compared net income to shareholders’ equity (Drake, et. al, 2013, p122)
Caluccio's: increases from 18.2% in 2010 to 26.9% in 2011.
Return on equity
From the above analysis we can conclude that CALUCCIOU’S can be positioned on the 3rd rank when compared with the above competitors in the market.
The following are the points which brings CALUCCIOU’S on 3rd positions:
The growth rate
The ratio analysis seen in the presentation
Ability to meet interest payment
The ideal except for the fact that higher the ratio, better it is for creditors. (Biafore, 2004,p143)
Increased from 2.73 in 2010 to 7.19 in 2011
Higher than 1.5 but less than 5, are usually in good shape, more ability to handle interest expense. (Biafore, 2004,p143)
Useful indicator to investors in the company of the profitable use of their money.
Help to generate fund if profitability is not positive
Higher value of the goodwill
The relationship between the earnings made during an accounting period and the number of shares issued.