Financial statement analysis of richard pieris
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Financial Statement Analysis of
Richard Pieris Exports PLC
Financial Statement Analysis of
Richard Pieris Exports PLC
UCD12.2:Financial Accounting (Group Assignment)
Richard Pieris Exports PLC
OverviewCompany Background
Financial Ratios
Liquidity Ratios
Activity Ratios
Financial Leverage Ratios
Profitability Ratios
Per Share Ratios
Company BackgroundIt is one of the largest employment provider in the private sector.The group enjoys of it’s local market leadership in its traditional sectors of Rubber, Tires, Plastics, Retail and Distribution.In addition the Group has in recent times ventured into Plantations, Financial Services, Construction Logistics.
Financial Ratios
Liquidity RatiosUsed to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
RecommendationTo improve this ratio we have to increase funding of
inventory by short term creditors and trying to maximize
the cash balance and also reduced the current liabilities. To
reduce the current liabilities we have to pay our attention
to following strategies,
Pay off some current liabilities.
Funding of long term assets through equity
and long term loans.
Activity Ratios
Recommendations
Debtor’s collection period ratio was reduced. It’s
good for the company. For that it is better to
improve the credit sales further.
Total assets turnover is in a improvable rate in this
company. To improve that sales have to be improved
furthermore (finding new market etc.)
Financial Leverage RatiosUsed to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations.
Equity of the company is reduced leap &
bounds. To increase that we have to
achieve large amount of profit.
Using of fixed and variable rate borrowing
to strike a balance.
Reducing long term debts.
Recommendations
Profitability Ratios
Recommendations
Decreasing cost of sales percentage and
increases sales percentage. To upward
movement of customer demand and
minimizing costs to help increase to profit.
Reduce direct cost & to maximize the
profit.
Per Share RatiosPer-share data can involve any number of items in a company's financial position. In corporate financial reporting - such as the annual report.
Recommendations
Share value is improvable rate.
Existing rate is good. To improve
that introducing new product to
increase net profit.
Improve the working capital cycle.
Our Crew Nipuna Hasinthaka.
Tharushika Ruwangi.
Sudeepa Dahanayake.
Dilki Malsarani.
Prashan Charuka.
This is the time for Questions.
Thank You all for lending us your kind
ears!