accounting amp finance aaf044-6 assessment - case study

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Accounting & Finance ASSESSMENT - Case Study Centrica PLC

Individual assessment

You are to write a 2500 word report as though you were a consultant writing to the board of directors of a company considering embarking on a major new joint venture with Centrica. The board want to assess Centrica's performance over the past 3 years. Your report should cover the following:

(i) Background - Discuss the key opportunities and major problems that management of Centrica have had to face over the past three years.

(ii) Evaluate the financial statements and other financial information relating to Centrica to assess how the company has performed over the past three years taking into account any problems or opportunities identified in (i). This should be an interpretation of the ratios NOT the calculation of the ratios.

(iii) Discuss how the Centrica's performance over the past three years compares with its main competitors. Your answer should include some discussion as to whether the competitors identified faced the same opportunities and problems that Centrica faced. How were these reflected in the competitor's financial statements?

(iv) Conclusion - Discuss whether in your opinion the company the board should back a new joint venture with this company. Your answer should include some discussion as to the effectiveness of Centrica in dealing with the opportunities and problems they faced over the past three years.

Students are required to write a report, ON A STRICTLY INDIVIDUAL BASIS. This means no copying from other students or other published sources. The work that you submit through BREO will be plagiarism tested for copying from each other and from the internet and published sources.

Your Evaluation of the Financial Statements should include the following table:

 

2016

2015

2014

Gross profit margin

 

 

 

Operating Profit Margin

 

 

 

Net Profit Margin

 

 

 

 

 

 

 

Current ratio

 

 

 

Acid test ratio

 

 

 

Stock days

 

 

 

Debtor days

 

 

 

Creditor days

 

 

 

 

 

 

 

Return on Assets

 

 

 

Return on Capital Employed

 

 

 

Gearing

 

 

 

Interest coverage

 

 

 

 

 

 

 

P/E Ratio

 

 

 

Earnings per Share

 

 

 

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