Strategic Financial management

Learning Outcome 1: Deploy appropriate accounting theory and tools to the critical evaluation and interpretation of financial reports.

Learning Outcome 2: Master critical awareness of how management accounting has developed tools and techniques in order to improve strategic decision making and performance management.

Learning Outcome 3: Deploy appropriate accounting theory and techniques to the evaluation and analysis of performance measurement.

Learning Outcome 4: Critically evaluate strategic and stakeholder analysis using appropriate accounting theory and tools.

Assessment Task: JD Group half year statement: Peter Cowgill, Executive Chairman, said:

"The Group continues to demonstrate outstanding resilience in the face of numerous challenges arising from the continued prevalence of the COVID-19 pandemic in many countries, widespread strain on international logistics and other supply chain challenges, materially lower levels of footfall into stores in many countries after reopening and the ongoing administrative and cost consequences resulting from the loss of tariff free, frictionless trade with the European Union.

Given these challenges, the record result that the Group has delivered in the first half with a profit before tax and exceptional items of £439.5 million (2020: £61.9 million; 2019: £158.6 million) is extremely encouraging.

Required:

Compile financial and non-financial information for the financial years 2018-2021. Using all of the data available, critically review the financial performance of the JD Group plc and report your findings.

Your report will need to include an analysis of any new plans and strategies. (Appendices are not required and must not be provided).

Calculate a selection of ratios for the financial years 2018-2021 and provide an evaluation and analysis of the results.

Look at the list of Ratios, as discussed in class, and seek to identify the underlying reasons for the financial performance.

Conduct a PEST analysis and critically evaluate significant developments within the company and the wider retail sector.
Provide a SWOT analysis and critically assess the challenges and opportunities for the company's foreseeable future. (Include financial and non-financial elements).