Great Portland Estates

Great Portland Estates

About the Company

Great Portland Estates is a property development and investment company located in Central London. Currently the company owns over £2.0 billion of real estate. The company aims to provide a portfolio that helps in generating returns that are huge and provide good returns to the shareholders (gpe.co.uk). The company provides the customers with the best services for managing properties that helps the investors in earning huge profits. The company has a distinct business model.

The company helps in asset management as it thinks that its tenants are a valuable part and help the company in earning more. It helps the company in understanding the needs of the tenants and also in knowing them in the best possible manner. The company is an expert in buying and selling properties at the right time. This helps the company in earning more and that too at the right time. The company has individuals who are experts in their own filed and can help in ensuring that they study the market closely so that they have opportunities of growth. Development management is also a key for the company that helps in earning profits for the company and that it is able to make sure that they manage their business in such a manner that it is able to meet the standards and the new ways of doing business. It further helps the company in knowing the tenants in the best manner so that quality is maintained and the tenants are provided with the best service (gpe.co.uk). Finance management is the major part of the business cycle that helps the company in ensuring that it is able to earn huge profits. This is how the company is able to provide huge returns to its shareholders. The company ensures that there is appropriate mix of capital and debt and that it ensures that it has sufficient funds to invest and expand in the future.

Performance Evaluation

Financial Ratio Analysis

Liquidity Ratios

Quick Ratio: This ratio was greater than 1 in 2010; therefore, it indicates that the company has enough cash on hand to pay-off its debts and fulfill other needs. The ratio has however, declined over the past couple of years and is now less than 1. This means that now the company is relying more on the inventory and other assets to pay off its short term liabilities. This is an important ratio for the investors as it does not include inventory and tells the actual and accurate position of the company (Bragg, 2006).

Current Ratio: This ratio helps in knowing whether the company is in a position to pay off its debts or not. A ratio higher than 1 is considered to be good for the company as it means that the company can pay back its debts without any difficulty. In 2010, the company was in a position to pay off its debts as it had enough current assets. The past two years have been bad for the company and the ratio ...