1 / 19

Business Performance Analysis (Part 1)

Business Performance Analysis (Part 1).

major
Download Presentation

Business Performance Analysis (Part 1)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Performance Analysis (Part 1)

  2. learning objectivesperformance review the stages of performance reviewan example of a SWOT analysisFlatco plc balance sheet as at 31 December 2005Flatco plc profit and loss account for the year ended 31 December 2005reconciliation of operating profit to net cash flow from operating activities Session Summary (1)

  3. cash flow statementreconciliation of net cash flow to movement in net debt/fundscash flow statement – gross cash flowscash flow statement – analysis of changes in net debt/fundsprofitability ratiosprofitability ratios calculationefficiency ratios Session Summary (2)

  4. efficiency ratios calculationliquidity ratiosliquidity ratios calculation investment ratiosinvestment ratios calculationthe best performance measure – cash or profit?the advantages and disadvantages of using cash flow as a measure of company performance Session Summary (3)

  5. the advantages and disadvantages of using earnings per share (eps) as a measure of company performance Tomkins plc EBITDA for 1998 to 2002 Session Summary (4)

  6. carry out a performance review of a business, including the use of a SWOT analysiscritically evaluate the limitations of the performance review processdifferentiate between divisional manager performance measurement and economic performance measurementanalyse business performance through the use of ratio analysis of profitability; efficiency; liquidity; investment; financial structure Learning Objectives (1)

  7. use both profit and cash flow in the measurement of business performance critically compare the use of cash flow versus profit as the best measure in the evaluation of financial performanceuse earnings before interest, tax, depreciation and amortisation (EBITDA) as a close approximation of a cash flow performance measure Learning Objectives (2)

  8. the main aims of a business performance review are to provide an understanding of the business and provide an interpretation of results care must be taken in reviewing business performance, primarily because of lack of consistency in definitions, and changes in economic conditions Performance Review (1)

  9. An important area of business performance review is the use of ratio analysis looking at profitabilityefficiencyliquidityinvestmentgrowthfinancial structure Performance Review (2)

  10. The Stages of Performance Review

  11. An Example of a SWOT Analysis

  12. Flatco plc Balance Sheet as at 31 December 2005

  13. Flatco plc Profit and Loss Account for the Year Ended 31 December 2005

  14. Reconciliation of Operating Profit to Net Cash Flow from Operating Activities

  15. Cash Flow Statement

  16. Reconciliation of Net Cash Flow to Movement in Net Debt

  17. Cash Flow Statement - Gross Cash Flows

  18. Format 1 Profit and Loss Account Cash Flow Statement – Analysis of Changes in Net Debt/Funds

  19. Profitability Ratios

More Related