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Unit 7 - Management Accounting P3 Use accounting data and statistical information to measure business performance

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Unit 7 - Management Accounting P3 Use accounting data and statistical information to measure business performance. Measuring business performance using different accounting ratios. BTEC Business with accounting level 3 extended diploma. Please leave a review if you find this useful, thank you!

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P3 - measuring business performance


TESCO PLC
Ratios Formula Calculation 2018 Results 2018 Calculaion 2019 Results 2019 Improved or declined

Proftability ratios
Gross profit % (Gross profit / sales) x 100 () x100 5.83% () x100 6.48% Improved
Net profit % (Net profit / sales) x100 () x 100 2.10% () x100 2.06% Declined
ROCE % (Net profit / capital employed) x 100 () x 100 11.54% () x100 8.89% Declined

Liquidity ratios
Current ratio Current assets / current liabilities 2.47 1.56 Improved
Acid test ratio Current assets - stock / current liabilities 13600 - 11, 0.41 0.32 Declined

Efficiency
Debtor days (Debtors / sales) x 365 () x 365 9.54 () x 365 9.36 Improved
Creditor days (Creditors / purchases) 365 () x 365 60.63 () x 365 57.12 Improved

Investment ratios
Dividend cover Earnings per share/ dividends per share 0..03 4 0..06 2.228 Declined
Dividend yield (Net dividend / current share price) x 100 (0..10) x 100 0.0156 (0..50) x 100 0.02% Improved
Earnings per share Earnings / number of shares 1, 0.476 1, 5.1507 Improved
Price earnings ratio Current share price/earnings per share 192..12 1,600.83 255..1337 1,910.99 Improved
Market capitalisation Current share price x number of shares in issue 192.10 x 2731000000 5.24625E+11 255.50 x 3253000000 8.31142E+11 Improved
Gearing (Long term liabilities / total assets) x 100 () x 100 68.148 () x 100 38.2432 Improved

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Catherine Richards, Rob Dransfield BTEC Level 3 National Business Student Book 2
Publisher: mei 2010 ISBN: 9781846906343 Edition: 3

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