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Term Paper Dlmba Afm

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The Warwick MBA

Assignment Cover Sheet

Submitted by: 1168212

Date Sent: 6th December, 2012

Module Title: Accounting and Financial Management

Module Code: IB8010

Date/Year of Module: July 2012

Submission Deadline: 11:00 AM 6th December, 2012.

Word Count:1688

Number of Pages:13

Question: [Question Number and Title, or Description of Project]

“This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of Warwick regulation concerning plagiarism and collusion.

No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses …show more content…

Kesko performance overview

The table above shows that despite the increase in sales and number of employees, cash flow has fallen by more than half, profit from operations is down and profit for the year is even lower. There is no significant change in debt. The only bright figure is the capital expenditure which according to their strategy is as a result of expansion in other regions. (Annual reports, 2011 pg 2). The CEO’s statement that “The growth of Kesko's business operations strengthened in 2011 …Profitability improved” (annual reports, 2011 pp 6) suggest that there has been worse performance in previous years. A look at previous years’ annual reports will confirm that.

Performance Ratios
Performance Kesko 2011 2010 Change €million €million 281.00 10.96% 307.00 12.04% -9.0% 2,565.00 2,550.00 1,297.00 13.71% 1,230.00 14.02% -2.2% 9,460.00 8,776.00 281.00 2.97% 9,460.00 9,460.00 3.69 2,565.00 9,460.00 4.66 2,029.00 1,721.00 18.19% 9,460.00 9,460.00 2.35 4,032.00 307.00 3.50% 8,776.00 8,776.00 3.44 2,550.00 8,776.00 4.99 1,759.00 1,622.00 18.48% 8,776.00 8,776.00 2.25 3,908.00 -15.1% 7.2% -6.6% -1.6% 4.5% Ahold 2011 2010 12.99% 12.56% 26.17% 26.82%

PBIT/TA-CL GP/Sales

RoCE Gross Margin

Operating Profit Sales Sales/TA-CL

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