Using the financial statements and using these ratios from the picture, discuss the performance of Cobham PLC in 2016.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the financial statements and using these ratios from the picture, discuss the performance of Cobham PLC in 2016.
Below you will find the financials of Cobham PLC for 2014-2016:
Income statement £m
2016
2015
2014
Revenue
1,943.9
(1.567.3)
376.6
1,851.7
(1.408.2) (1.290.1)
561.6
(504.0)
57.6
2,072.0
Cost of sales
Gross profit
663.8
(1,155.7)
(779.1)
4.1
SG&A
(651.8)
12.0
Operating (loss) profit
Finance income
5.2
6.4
(72.9)
(847.9)
52.8
(795.1)
Finance cost
(57.0)
(39.8)
2.1
(37.7)
(39.7)
24.3
(Loss)/profit before taxation
Таxation
4.7
(Loss)/profit after taxation
29.0
Balance sheet £m
2016
2015
2014
Non-current assets
PPE & Intangibles
Investment properties
Investment in joint ventures and associates
Trade and other receivables
1,588.8
2,109.4
4.3
3.0
2,430.8
3.6
10.4
3.6
3.1
66.0
71.3
51.1
Deferred tax asset
42.3
11.4
10.5
25.8
1,730.1
Financial assets
12.6
2,212.0
13.7
2,519.6
Current assets
Inventories
405.3
410.4
429.5
Trade and other receivables
409.8
366.0
435.3
0.4
236.4
1,101.6
Current tax receivables
3.1
8.6
Financial assets (including cash)
244.7
1,062.9
320.6
1,105.6
Current liabilities
Borrowings and other financial liabilities
Trade and other payables
199.7
398.1
103.1
22.2
430.8
505.5
Provisions
180.6
74.3
60.5
Current tax liabilities
149.5
864.0
125.1
797.2
119.2
707.4
Non-current liabilities
Borrowings and other financial liabilities
Trade and other payables
1,235.7
31.5
1,359.0
24.8
1,462.3
36.2
Provisions
57.3
27.6
87.0
68.2
66.5
Deferred tax liabilities
102.0
134.5
Retirement benefit obligations
56.7
102.0
1,801.5
1,439.1
1,610.7
Equity
489.9
909.7
1112.3
Transcribed Image Text:Below you will find the financials of Cobham PLC for 2014-2016: Income statement £m 2016 2015 2014 Revenue 1,943.9 (1.567.3) 376.6 1,851.7 (1.408.2) (1.290.1) 561.6 (504.0) 57.6 2,072.0 Cost of sales Gross profit 663.8 (1,155.7) (779.1) 4.1 SG&A (651.8) 12.0 Operating (loss) profit Finance income 5.2 6.4 (72.9) (847.9) 52.8 (795.1) Finance cost (57.0) (39.8) 2.1 (37.7) (39.7) 24.3 (Loss)/profit before taxation Таxation 4.7 (Loss)/profit after taxation 29.0 Balance sheet £m 2016 2015 2014 Non-current assets PPE & Intangibles Investment properties Investment in joint ventures and associates Trade and other receivables 1,588.8 2,109.4 4.3 3.0 2,430.8 3.6 10.4 3.6 3.1 66.0 71.3 51.1 Deferred tax asset 42.3 11.4 10.5 25.8 1,730.1 Financial assets 12.6 2,212.0 13.7 2,519.6 Current assets Inventories 405.3 410.4 429.5 Trade and other receivables 409.8 366.0 435.3 0.4 236.4 1,101.6 Current tax receivables 3.1 8.6 Financial assets (including cash) 244.7 1,062.9 320.6 1,105.6 Current liabilities Borrowings and other financial liabilities Trade and other payables 199.7 398.1 103.1 22.2 430.8 505.5 Provisions 180.6 74.3 60.5 Current tax liabilities 149.5 864.0 125.1 797.2 119.2 707.4 Non-current liabilities Borrowings and other financial liabilities Trade and other payables 1,235.7 31.5 1,359.0 24.8 1,462.3 36.2 Provisions 57.3 27.6 87.0 68.2 66.5 Deferred tax liabilities 102.0 134.5 Retirement benefit obligations 56.7 102.0 1,801.5 1,439.1 1,610.7 Equity 489.9 909.7 1112.3
2 Year
2016
2015
3 ROE
-1.623 -0.0414
4 B)
5 Year
6 Gross Profit Margin
7 C)
2016|
19.4%
2015
32.0%
7
2016
2015
0.60
8 Year
9 Total Asset Turnover
0.64
10 D)
2016
4.77
2015
4.93
11 Year
12 Inventory Turnover
13 E)
14 Year
2016
2015
15 Current Ratio
1.23
1.39
16 F)
2016
2.52
17 Year
2015
18 Debt to equity
19 F)
1.49
2016
-10.69
2015
0.21
20 Year
21 Interest Coverage ratio
Transcribed Image Text:2 Year 2016 2015 3 ROE -1.623 -0.0414 4 B) 5 Year 6 Gross Profit Margin 7 C) 2016| 19.4% 2015 32.0% 7 2016 2015 0.60 8 Year 9 Total Asset Turnover 0.64 10 D) 2016 4.77 2015 4.93 11 Year 12 Inventory Turnover 13 E) 14 Year 2016 2015 15 Current Ratio 1.23 1.39 16 F) 2016 2.52 17 Year 2015 18 Debt to equity 19 F) 1.49 2016 -10.69 2015 0.21 20 Year 21 Interest Coverage ratio
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