Liquidity ratio= (current assets excluding inventories) / current liabilities
2009: (2,302-849)/2,509=1: 1.73
2008: (2,635-767)/3,388=1: 1.81
Delphi+Access图书管理系统 2007: (2600-821)/4,614=1: 2.59
Liquidity ratio is frequently used to determine whether a company will be able to continue as a going concern. The average liquidity ratio in Food Industry is generally expected to be 1:1, while Cadbury, with 1:1.81 in 2008 and 1:2.59 in 2007 is quite low. That means Cadbury’s ability to pay off its short-terms debts obligations is questionable. The problem here is not caused by Cadbury being stuck with too many inventories, but its high short-term debts.
Cadbury’s ability to turn short-term assets into cash to cover debts leaves no reason for its executives to be optimistic.
Gearing ratio=fixed interest borrowings/ (equity + fixed interest borrowings)
2009 :( 729+1,396)/ (729+1396+3,087) =40.8%
2008 :( 1,189+1,194)/ (1,189+1,194+3,534) =40%
2007 :( 2,562+1,120)/ (2,562+1,120+4,173) =47%
Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. In case of Cadbury, we can see a big decrease in gearing ratio from 2007 to 2008, and it almost maintain the same in 2009.Actually, gearing ratio of
2007 is a little bit risky, since it almost amounted to 50%, but it turned out to be better in 2008 and
2009.Still, we can see Cadbury are mainly financed by the company’s own money (with 3,087m in equity in 2009) and long-term borrowings (1,396m). It’s very hard to say the financing structure of Cadbury is good or not, because gearing can work in both ways, for a high-gearing company, a small increase (decrease) in revenues might bring a much larger return (loss) to shareholders.
Interest times cover
Interest times cover=EBIT/interest
2008: 398/50=8.0
2007: 286/88=3.3
Interest times cover is a ratio used to determine how easily a company can pay interest on outstanding debt. The ratio of 2007 is pretty low, suggesting the company might be burdened by debt expense. It has, however, improved dramatically in 2008, this is owing to the fact that a substantial proportion of the short-term debts has been repaid (as has mentioned above), which has the effect of reducing the relative contribution of short-term debts to the financing structure of the company and reducing the amount of interest payables.
Return on shareholders’ funds (ROSF)VB+Access成绩管理系统需求分析说明书
Return on shareholders’ funds=profit for the period/total equity
2008:366/3,534=10.36%
2007:407/4,173=9.75%
The ROSF shows a slight increase in 2008 over 2007, which is mainly due to the decrease on total equity (especially in share premium account), maybe in writing off the company's preliminary expenses. The increase in ROSF is a good sign, since it indicates that Cadbury is profitable and has more profit available for shareholders.
上一页 [1] [2] [3] [4] [5] [6] [7] 下一页
MN5441财务会计信息和分析论文英文文献和翻译 第2页下载如图片无法显示或论文不完整，请联系qq752018766
