MORRISON'S PLC - FINANCIAL ANALYSIS

Morrison's Plc - Financial Analysis

Table of Contents

Introduction3

Scope of the Paper3

Discussion4

Financial Information for Shareholders4

Objectives of Shareholders6

Financial Control8

Company Financials14

Ratio Analysis15

Conclusions27

Introduction

Shareholders are an important part of organization and have varying needs with respect to financial information of the company. Shareholder is one individual (natural person) or entity that owns shares of the different types of corporations or limited partnerships that can exist in the legal framework of each country. A shareholder is a financial partner that participates in the management of the company in the same measure that provides capital to it. Therefore, the one who own more shares have more votes and standing in the decision making process. In the case of a corporation, there may be a large number of shareholders who are not necessarily involved in the management of the company, and whose interest is only to receive a dividend payment in exchange for their investment. However, the shareholders themselves are interested in a company's development and for this purpose, accounting information that allows them to achieve these purposes. In today's business, decisions are made on the financial information of the company for the proper conduct of the management process. The financial analysis method allows the company to make effective decision and this decision directly impact on the operations and on the investors.

Scope of the Paper

The purpose of the paper is to evaluate the financial objectives of Morrison Plc and assess its financial with the help of ratios. Based on the results, the paper presents detailed evaluations based on trend analysis and economic turns that the firms has evidenced. The paper also highlights the importance of financial information for shareholders and recommend on the coincidence of company's objectives with that of the shareholders.

Discussion

Financial Information for Shareholders

Financial information is the raw material for the investors (and other economic agents, lenders, customers, employees, government) to make their decisions. Shareholders are in prime need of this information for investing and decision making purposes. The obligation to disseminate financial information is different depending on the company, especially after the fact that the company is listed or not. But the mere obligation to file annual accounts with the Registry lies for most commercial companies. The companies at risk are required to publish their accounts in a legal gazette (Banking institutions, credit institutions or subsidiaries of listed companies for example) (Nasi 2005, 45-47). Companies listed on the regulated market and financial institutions above a certain threshold publish the bulletin of mandatory legal announcements, a branch of the Official Journal.

Financial statements are a set of indicators of accounting, as reflected in the form of certain tables and characterizing the movement of assets, liabilities and financial position of the reporting period. Financial reporting is a system of information on the financial situation of the company, the financial results of its operations and changes in its financial position made on the basis of accounting data (Ishola 2009, 178-191).

There are four main types of financial statements:

Balance sheet includes the assets and liabilities of the company in ...