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List the Entrepreneurial Cultural Practices in Kenya
Date posted:
November 10, 2021
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Give the Advantages and Disadvantages of Paid Employment
Date posted:
November 10, 2021
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Give the Advantages and Disadvantages of Self-Employment
Date posted:
November 10, 2021
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Give the characteristics of Self-employment and salaried (paid) employment
Date posted:
November 10, 2021
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Outline the Contribution of entrepreneurship towards national development
Date posted:
November 10, 2021
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Who is an entrepreneur?
Date posted:
November 10, 2021
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Rights of Aliens according to Article 5-10 of the Declaration on the Human Rights
Date posted:
November 9, 2021
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List some of the Alcoholic Support Groups
Date posted:
November 9, 2021
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Identify the factors that lead to increase in unethical behavior in an organization
Date posted:
November 9, 2021
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Describe three Principles of Ethical Behaviour
Date posted:
November 9, 2021
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Explain the Strategies for Implementing Social Responsibility
Date posted:
November 9, 2021
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Describe two Perspectives on Corporate Social Responsibility
Date posted:
November 9, 2021
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Describe the employment law
Date posted:
November 9, 2021
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Discuss some of the Laws Affecting the Operation of Markets
Date posted:
November 9, 2021
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Outline the steps in installation of management accounting system.
Date posted:
November 8, 2021
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Discuss the tools and techniques used in management accounting.
Date posted:
November 8, 2021
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Outline the differences between financial accounting and management accounting.
Date posted:
November 8, 2021
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Outline the differences between cost accounting and management accounting.
Date posted:
November 8, 2021
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Outline the advantages of management accounting.
Date posted:
November 8, 2021
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What are the objectives of management accounting?
Date posted:
November 8, 2021
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State and explain the characteristics/nature of management accounting.
Date posted:
November 8, 2021
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Why is Teamwork Important at Workplace?
Date posted:
November 8, 2021
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Common Problems at Work with their possible solutions
Date posted:
November 8, 2021
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How to deal with Absenteeism in the Workplace
Date posted:
November 8, 2021
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Importance of Confidentiality at Work
Date posted:
November 8, 2021
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Ways to Deal with Unethical Behavior in the Workplace
Date posted:
November 8, 2021
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RATIO ANALYSIS CASE STUDY
The financial statements below were extracted from the books of E. A. Portland Cement Company ltd. The excerpts below were also extracted from the key managers reports;
The business environment in the year continued to present challenges such as competition, high energy costs and importation of cheap cement into the market which reduced sales in the local and regional markets.
The Group’s performance in the year was affected by these factors resulting to a loss of Kshs 385 million. Earnings per share reduced to a loss of Kshs (4.30) from Kshs 19.73 in the year 2013. Clinker production increased in the year reducing the quantity of purchased clinker by 39%.
Major improvements in production efficiencies however resulted in 3% savings in cost of production. However, the cost of energy increased marginally in the year averaging Kshs.13.36 per kwh compared to kshs 12.70 per kwh in 2013. Power consumption averaged 69.1 million kwh in the current year compared to 67.7 million kwh in the previous year resulting in additional costs of Kshs. 70 million during the year in focus due to the higher production of clinker. As a result of the cost savings, Gross Margin returned an impressive 26% despite a 3% slump in cement prices.
Administrative and Selling Costs increased by Kshs 700m (or 34%) attributed to higher staff and administration expenses incurred in the year. There was an increase in staff costs driven by restructuring management levels and staff compensation.
For the year under review, the Company returned an operating loss of Kshs. 92 million compared to prior year operating profit of Kshs. 340 million while the loss before tax was Kshs. 374 million compared to a profit before tax of Kshs. 1,419 million the previous year.
The previous year’s results included Fair Value Gain on revaluation of the investment property amounting to Kshs. 730 million. Cash flows generated from operations remained relatively stable at above Kshs 700 million similar to the previous year. Investments in long term capital projects used up Kshs. 597 million while servicing of loan obligations used up another Kshs. 541 million during the year.
Required
a. Calculate the key ratios under each of the categories below to evaluate the financial performance of the company
1. Liquidity ratios.
- Current ratio
- Cash ratio
2. Gearing/leverage/capital structure ratios.
- Debt ratio
- Capital gearing ratio
- Interest cover ratio
3. Profitability ratios.
- Gross profit margin
- Net profit margin
- Return on capital employed
- Return on equity
4. Growth and valuation ratios.
- Earnings per share
- Price-earnings ratio given average share price for 2014 to be sh 53
- Earning yield
b. Provide a detailed analysis of the company performance, indicating whether you concur with the report provided by the management on the financial performance of the company.
Date posted:
November 8, 2021
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List some of the Bioethical Issues in Ethics and Social Responsibility
Date posted:
November 8, 2021
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What are various contemporary issues in HRM today?
Date posted:
November 8, 2021
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State and explain the limitations of ratio analysis.
Date posted:
November 8, 2021