Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Rolls Royce
The principle activities of Rolls Royce are to provide "integrated power solutions for customers in civil and defense aerospace, marine and energy markets." The breakdown is as following: Rolls Royce has grown in the past year. The company's sales have increased 9.3% from £11,124 to £12,161. The company's operating profit has also increased, from £1186 to £1373, which is a gain of 15.8%. The stock price has increased from 757 to 873, which is a gain of 15.3%.
The auditor's report conveys the following findings.
"The financial statements give a true and fair view of the state of the company's affairs"
The financial statements have been properly prepared in accordance with IFRS and UK GAAP
The director's remuneration report has been properly prepared and is consistent with the financial statements
There is nothing to report under the Companies Act of 2006.
The ratios for Rolls Royce are as follows:
Ratio
Expression
Industry
Average
Eg Trade receivables period
days
days
ROE
1559/6105
736/4519
19%
Gross profit margin
2745/12161
2448/11124
22%
10%
Net profit margin
1559/12161
848/11124
3%
Current ratio
8522/7194
8108/6916
Inventory turnover period
2726/9416 x365
2561/8841 x 365
105 days
105 days
50 days
Payables' turnover period
9581/6387 x 365
8841/6236 x 365
243 days
259 days
20 days
Gearing ratio
4816/11278
4988/9880
5.
The company has experienced a fairly normal growth trajectory over the 2011-2012 period. The figures used are exclusive of restructurig that the company undertook, which allows the figure to be more comparable with each other. The gains in the operating profit and share price are almost identical.
On the whole, the company's operating metrics are positive. Rolls Royce has healthy margins and a strong balance sheet. Most of its metrics outperform the industry average. The cash conversion cycle is very long for Rolls Royce -- the fictional industry figures make it look bad but really RR probably performs in line with its peers. The long lead times and high development costs in this industry highlight the need for an extended cash conversion cycle. The payables period is especially interesting -- RR seems to want to receive payment for a good before paying its own bills. Normally, that would be considered a sign of financial distress, but with an otherwise healthy balance sheet it seems this is more the industry norm.
The P/E ratio is interesting. The stock price has increased 15.3%,…
Works Cited:
Rolls Royce Holdings plc Annual Report 2012.
Note the figures are indicative and do not represent actual industry averages. Nevertheless, you are required to assume these are the actual industry averages and use these in your analysis.
The figures used in calculating the trade receivables period ratio serve as an example and do not reflect items on Rolls-Royce's annual reports. You are not required to calculate this ratio.
Corporate Personality Separate Corporate Personality Explain the meaning of and the rationale for the principle of separate corporation personality. Personality in this case does not have anything to do with an actual person, but that personhood is given to something. Also, this does not mean that the corporation in question has the traits or quirks given to it by the people who work there. The concept of identity in the corporate realm is
Aside quality and financials, control techniques are also present in other organizational departments, such as engineering, logistics, information systems, pre-series center, production technical support, purchasing and sales and marketing. While all these organizational processes are thoroughly controlled, incremental emphasis is placed on control techniques at the level of logistics operations. At this organizational stage, the control functions refer to the following: Timely delivery of the vehicles Adequate supply of automobile components (achieved
From this perspective, luxury brands may be desired be many consumers, but the more affluent are clearly more readily capable of such acquisitions, making them a natural target for luxury brands marketers. Although there is a growing body of contemporary knowledge concerning the influence of self-perception and self-image on luxury brand purchases, the study of these issues is certainly not new. In fact, as early as 1899, Thorstein Veblen developed
Engineers should focus on the improvement of the performance of the economy. This relates to the transformation of the theories of controlling the world and adopting new frameworks in the operating in conjunction with the planet. New engineers need to adopt and implement new theories of focusing on the economic, social, and political concepts in relation to both technical and nontechnical disciplines (Cameron 2010 p.40). Leaders in British Engineering According to
Improvement of Supply Chain Management Tools and Processes for Ultimate Strategic Achievement of Success in Military and Civil Business Today, both public and private sector organisations of all sizes and types are faced with the same need to optimize their supply chain management processes to the maximum extent possible in order to achieve and sustain high levels of performance and productivity. Because supply chain management systems are frequently highly complex,
Other important information for each item is also available such as details of the suppliers, lead-time, and lot size policy. The inventory record also contains changes in order that may result from withdrawals, canceled orders, stock receipts, or similar events. 4. What benefits and what problems would you expect given the company's level production policy? The company's policy of level output works in such a way that prior to peak demand