FINANCIAL MANAGEMENT

Understanding the Concept of Financial Management

FINMO02 Assignment2

Overview of the Selected Company2

Discussion3

UK's Aerospace Industry3

Q1-Evaluation of Meggit's financials (Profits, Earnings and Dividends)4

Balance Sheet Analysis4

Income Statement Analysis5

Cash Flow Statement Analysis (Cash generating capability)6

Q2-Ratio Analysis (Financial Stability & Liquidity)7

Profitability Ratio7

Valuation ratio8

Efficiency Ratio9

Management Effectiveness Ratio9

Return on Equity9

Q3- The information disclosed to assist stakeholders' understanding10

Q4- Meggit PLC's responsiveness towards Ethical, Social & Environmental issues10

Business Conduct and Ethical Policy of Meggit PLC11

Meggit's Code of Conduct12

Conclusion12

References14

Understanding the Concept of Financial Management

FINMO02 Assignment

Overview of the Selected Company

Meggit PLC is name renowned for its engineering expertise. Company is considered as one of the major player in the aerospace manufacturing industry. There is a history of success and achievements associated with the Meggit plc. From its inception in 1940, company is continually ensuring high standards of development and quality enhancement in its products and offerings. Wilson Lathes is the earlier or foundation name of Meggit PLC. This shift of name across in 1947 when Meggit a Dorset based engineering group was bought by the company. Shares of Meggit PLC are publically traded on the LSE (London Stock Exchange). Headquarter of company is located in Boumemouth Airport, UK. The success of Meggit PLC is entirely dependent upon its professional team that work day in and day out in order to gain competitive advantage. More than 10,000 employees are currently working under the shelter f Meggit PLC.

Meggit offers a wide range of products and services. It provides engineering equipment related to the helicopters, jet plane, commercial planes, in addition, it also deals in the defence sectors. In its defence unit Meggit plc manufactures highly technologies marine threat precautionary frameworks. Radar systems, night vision gaggles and military aircrafts. On the other hand, Meggit plc also plays a significant role in the long term sustainability of nation by introducing new and modernise technologies in other industries such as health and care industry

Discussion

UK's Aerospace Industry

Aerospace & Defence industry of United Kingdom is recognising all over the world due to its innovative nature. The industry has supported the military and Para military forces f United Kingdom. The role of Aerospace and defence industry in the strengthening of country's economy is admirable and significant. Based on the global market share and its product range, Aerospace and defence industry of United Kingdom is ranked n second number. It has a global market share of 17%. A&D industry has reported a turnover of 20 billion pounds during 2010 (Aerospace Defence Security, 2010). A&D industry has also supported the entire economy in terms of many things. It provides direct employment to 113,000 individuals; however, around 275,000 employees are also associated with the same industry (HM Government, 2013). Aerospace and defence industry is also playing its role in balancing the balance of payments and trade deficits of the country.

World big corporate names operate under the shelter of UK's Aerospace and defence industry. Major players of the industry include Rolls Royce, Thales group, QinetiQ, Ultra electronic, Cobham, Britten Norman, Meggit, BAE System and General ...