Complete 12 page APA formatted essay: WPP PLC Financial Report.
The comparison of these ratios shows that current asset has not been utilized well as compared to fixed assets. The stock turnover ratio indicates that WPP PLC has replaced its stock almost 62.4 times during the year. In other words, it can be said that the company generated $62.4 worth of sales for every $1 invested in stock.
Debtor Day’s Collection Period
Debtors__x 365
Cash Sales= 50 days
Creditor Day’s Payment Period
Creditorsx 365
Purchases= 125 days
Difference between creditor and debtor days for 2004 is positive:
Creditor days – Debtor days= 125 days – 50 days= 75
The firm takes considerably longer (75 days longer, on average) to pay its creditors than it does to obtain payment from its debtors, having a good sign for the business.
4- LIQUIDITY
The ability of WPP PLC to ‘pay its way’ or to satisfy financial obligations without difficulty as and when they become due can be analyzed with the help of following ratios:
Current Ratio
Current Assets___
Current Liabilities= 0.87: 1
Acid Test (Or Quick) Ratio
Current Assets- Stock
Current Liabilities= 0.82: 1
Thus, the above ratios don’t show a good position of the company in terms of its current assets and liabilities. It reveals that the company doesn’t have enough liquid assets to pay off its short-term liabilities when they become due.
5- SOLVENCY
To obtain an indication of the company’s longer-term solvency and its degree of financial risk, following ratios would be used:
Gearing (Or Leverage) Ratio
Total Debt Capitalx 100
Total Equity Capital= 33.28%
Debt Ratio
Total Debt Capital_________x 100
Total Assets (Fixed + Current)= 11.
We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreThe Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.
Read moreThe Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.
Read moreThe Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.
Read moreBy placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.
Read more