Accounting and Finance for Decision making of Greggs
The main purpose of this topic is to evaluate the current financial analysis of the business and examine the key financial performance. By determining the change and examining the most recent qualities, the business values can be addressed. For the determination of the best position and the valid areas, the organizational change can be examined. The profitability ratio helps to increase the organizational profit and determine the most suitable plan in terms of taking valid techniques. By determining the change and addressing the instant operations, the organizational core values will be reliable.
The profitability of the company addressed the change and determined the higher operations to get the instant and reliable position. The profitability margin indicates a better response and addresses the change toward the cleared values. Greggs company provides fresh food to consumers by focusing on the entire factory and determining reliable operations in the strategic plans. By giving greater representation and taking the most reliable techniques, the business changes are reliable tools. Several locations are provided by the Greggs company through certain feelings and the generation of active areas towards the change.
Managing the change and taking the most useful terms that help to take the reliable operations. Greggs company implements profitability and generates the best position in terms of validating success by doing the greater and the most sustainable techniques. Greggs company developed advanced techniques by providing fresh foods to its consumers leading the greater processes and implementing the higher changes in the current records. Building the change and taking the cleared processes, the firm’s advanced learning plans will be reliable. To proceed with the business forms and attract instant changes the current operations become attached as dealing with the change and addressing the most useful areas towards the learning.
Financial ratios:
Profitability ratios:
Two profit margin ratios:
| Gross profit margin: | 2021 | 2022 |
| Gross profit/revenue = | 782.0 / 1,229.7 = 0.635. | 938.3 / 1,512.8 = 0.620. |
According to the profit margin ratios, the Gross profit margin of the Greggs company in the year 2021 was high as compared to the next year. Because the gross profit and the revenue relationship are positive in terms of the company’s success. Addressing the operations and managing the current roles, the business processes must be valuable. To attach the profitability and take the instant parts, the business roles can be addressed in the updating terms. The evaluation of certain plans and taking the higher achievements, the business resource must be addressed.
| Net profit margin: | 2021 | 2022 |
| Net income/revenue = | 122.9 / 1,229.7 = 0.099. | 122.8 / 1,512.8 = 0.0811. |
The relationship between the net income and the sales of the company shows the net profit margin. It is one of the valuable and the key reliable facts that represent the success of the business. In the year 2021, the net profit margin of the business will increase as compared to the previous year. It is valid till the change and adding the greater process through the change. Evaluate certain practices and proceed with the activities, the business roles can be updated in an advanced manner.
Return ratios:
| Return on assets: | 2021 | 2022 |
| Net income / average total asset = | 122.9 / 888.4 = 0.138. | 122.8 / 974.4 = 0.126. |
In the return ratio, the analysis of the resent-on assets based on the income statement and the average total assets are defined. To determine the large values and take the valuable plans, the organizational cleared values become addressed. Having the change and the organized resurrects the business plans must be referred to. In the year 2022, the average total asset amount is important which refers to the fluctuation and takes the valuable term.
| Return on equity: | 2021 | 2022 |
| Net income / average total equity = | 122.9 / 429.2 = 0.286. | 122.8 / 446.0 = 0.275. |
The evaluation of return on equity is the ratio that depends on the net income as well as the average total equity. To proceed with the operations and manage the change, the current forms can be addressed.
Giving detailed values and taking reliable sources, to increase the business operations. Determine the organizational values and take the sustainable changes, the organizational; performance are the cleared forms. Return on equity based on the net income and the average total equity of the Greggs company.
| Current ratio: | 2021 | 2022 |
| Current assets / current liabilities = | 266.1 / (206.9) = (1.286). | 283.0 / (244.1) = (1.159). |
The development of the liquidity ratio depends on the current assets and the current liabilities in terms that proceeding with the changes and managing the future roles. The eluviation of current assets and the generation of certain liabilities, the business roles can be addressed. The value of current assets in the year 2022 increases as the change element toward the cleared forms. Building reliable challenges and addressing the instant activities, the business roles can be taken in the most updated terms. For the determination of better operations and taking valid sources, the current plans become valid.
| Quick ratio: | 2021 | 2022 |
| Current assets – inventory/liabilities = | 266.1 – 27.9 / (206.9) = ((1.151). | 283.0 – 40.6 / (244.1) = (0.99) |
The development of a quick ratio depends on the current assets, inventory, and liabilities of the Greggs company. In the year 2021, the total quick ratio will rise affecting clear planning. The amount of current assets of Greggs company in the year 2022 is effective in leading the change and tracking the most useful areas of the successes for the determination of success and taking the most uniform areas the current operations can be examined.
Efficiency ratios:
| Inventory turnover ratio: | 2021 | 2022 |
| Cost of goods sold / average inventory = | (447.7) / 27.9 = (16.04) | (574.5) / 40.6 = (14.150). |
The efficient ratio indicates that the amount of cost of goods sold and the average inventory are the core terms that intake the values and determine the change. For the determination and the instant values, the current performance of the business can be reliable. For managing the change and determining the best position, the advanced activities will be applicable that lead the change and take the higher process. In the year 2022, the amount of average investor becomes increased as it required rot demine the reliable change.
| Asset turnover ratio: | 2021 | 2022 |
| Net sales / average total assets = | 1,512.8 / 888.4 = 1,702. | 1,229.7 / 974.4 = 1.262. |
The evaluation of the asset turnover ratio depends on the entire sales and the average total sales. Interacting with the organizational performance and taking instant values toward the change. Managing the activities that lead the better roles and determining the most updated version, the asset turnover ratio is reliable.
Solvency ratios:
| Debt to equity ratio: | 2021 | 2022 |
| Total debt / total shareholder’s equity = | (459.2) / 429.2 = (1.069). | (528.4) / 446.0 = (1.184). |
The debt-to-equity ratio of Gregg company indicates that the total debt and shareholder’s equity are the instant forms that addressed the familiar changes. Managing the current operations and taking the advanced values, the business growth must be examined. In the year 2022, the overall debt-to-equity ratio will increase representing the positive attitude and image of the business
| Debt to asset ratio: | 2021 | 2022 |
| Total debt / total assets = | (459.2) / 888.4 = (0.516) | (528.4) / 974.4 = (0.542). |
The debt-to-asset ratio evaluates the total debt and the total assets in terms of the proper success and examines the change toward the actions. In the year 2022, the ratio’s value is higher indicating the large operations and taking the decisions that are valid till the change. For the determination of best operations and reliable plans, the organizational changes become strongly attached. The amount of total assets becomes raised that observer the success.
Investment ratio:
| Working capital ratio: | 2021 | 2022 |
| Current assets / current liabilities = | 266.1 / (206.9) = (1.286). | 283.0 / (244.1) = (1.159) |
This ratio indicates that the higher current liabilities of Greggs in the year 2022 represent the larger operations toward the actions. The company can improve its profitability to take the most valuable operations and proceed with the executive terms regarding certain plans. Working capital ratio must be developed related to the advanced success plans.
| Price-earnings ratio: | 2021 | 2022 |
| Share price/earnings per share = | 2,853,870 / 14.3 = 199.571. | 2,385,870 / 117.5 = 20305.27 |
The evaluation of price price-earnings ratio depends on the price of a share and the earnings per share. To develop the e advanced resources and take better processes, the business plans must have proceeded. In the year 2022, the price-earnings ratio value will become higher as compared to the advanced operations in terms of taking valiant reliable techniques.
Conclusion:
In this financial report, the evaluation of the current practices and the role of financial statements in examining the position of the business are defined. Greggs company gives fresh food services to the customer in the global market by proving the core Examining the change and taking the clear process, the business plans can be examined in the future. Greggs company’s innovation and the core efforts toward the achievement of reliable terms helped to raise the instant plans and examine the most successful areas. Various strategies help the company to manage the financial operations in reliable terms for certain operations.
The price-earnings ratio, investment traitor, and liquidity ratio are effective ratio that increases the business responses and takes the most valuable changes in the sustainable eras. The financial ratio analysis helps to investigate better plans and addresses the clear change in the broad roles. Having the greater parts and taking the most appraised practices, the business roles become valid. The financial report indicates the larger operations and the cleared plans through the processed terms. Addressing the higher change and taking the best forms, the business plans can be applicable in the cleared change.
By giving the best resources and addressing reliable change, organizational planning becomes reliable to achieve success. Gregg’s investment ratio indicates that the share price of a company becomes raised from time to time as it enhances the quality of the business or the most examined areas in the processed forms. The development of strong and effective profitability operations of the business depends on advanced practices and leading the higher tools. Interacting the large operations and proceeding the greater values, the organizational spirit can be addressed to take the valuable change. By managing effective processes and implementing the higher changes, the business roles can be addressed toward the clear and the most valuable changes. It helps to transform the plans and addresses the most valid options to take the cleared and the transformed operations.
