Renold Plc. Financial Analysis

Renold Plc. Financial Analysis

Introduction

Renold is well known for its innovation and strategy development, design and manufacturing skill. The company has a wide range of products that consists of industrial chains heavy gearboxes used for manufacturing and industrial machines and it also produces couplings for the line and power transmission, lifting, passing on and transforming requisitions far and wide. Handling many requesting working situations, Renold has a track record of victory offering numerous unique items and administrations.

Context

This study will portray the imperativeness of picking the right methodology. Inside and outer investigation of Renold Plc is made to support the status as the minimal effort attire, footwear and frill. It incorporates the model of the method being used. The key decision of Renold Plc makes the organization a guide in the industry. The organization has turned into a sample in the key administration on account of its great execution of the method. Inside and outside investigation of Renold Plc shows the set of managerial choices and movements that figure out the long run execution of a gathering (Jane, 2008). It incorporates natural examining, system plan, technique usage and assessment and control. Renold Plc is one of the heading attire, footwear and embellishments organizations in which offer an extremely sensible value, making the organization the guide in ease.

Overview

The financial performance of Renold Plc shows that the major portion of the assets is comprised of liabilities; which is a good indication for the company as the company's short term and the long-term debts are stable. In addition to this, the company's equity seems good or satisfactory, and it is high as compare to the liabilities. Moreover, the total assets per share and net assets per share reflect that the Renold Plc 's assets structure is in good shape which shows that the company can meet its financial obligations that is liabilities, if some sort of financial loss occur (Richard, 2007). Notwithstanding this, past studies states that the budgetary analysis are to figure out if there are liquidity issues, the investigation of profitability figures out the advancement of the organization and profit for contributed capital, administration and examination of related variables included in the transient financing, acquiring revolutions and time of gathering and installment implies.

Key Financials

Income Statement

Revenue

188m

Net Income

17m

EPS - Net Income - Diluted

0.42

Revenue per Share

4.52

Balance Sheet

Total Assets

117m

Total Liabilities

41m

Shareholders' Equity

76m

Total Assets per Share

2.81

Net Assets per Share

1.83

Cash Flows

Cash from Operations

18m

Cash from Investing

-11m

Cash from Financing

-8m

Cash Flow per Share

0.43

Ratios

Calculation Of Ratios For Renold Plc

Profitability Ratios

1/ 29/ 2012

1/ 2 9/ 2011

ROA % (Net)

=

Net Income X 100

=

17,327,473

=

16.28

=

13,613,297

=

14.14

Total Assets

106,448,500

96,244,000

ROE % (Net)

=

Net Income X 100

=

17,327,473

=

24.35

=

13,613,297

=

21.19

Stockholders' Equity

71,169,500

64,258,500

ROI % (Operating)

=

Operating Income X 100

=

17,876,978

=

25.12

=

14,248,036

=

22.17

Invested Capital

71,169,500

64,258,500

EBITDA Margin %

=

EBITDA X 100

=

24,119,000

=

12.85

=

19,566,000

=

11.96

Revenue

187,700,000

163,586,000

Calculated Tax Rate %

=

Taxation X 100

=

6,948,000

=

28.89

=

5,977,000

=

30.78

EBT Continuing

24,054,000

19,418,000

Liquidity Ratios

1/ 29/ 2012

1/ 29/ 2011

Quick Ratio

=

Quick Assets

=

40,920,000

=

1.04

=

33,396,000

=

1.17

Current Liabilities

39,186,000

28,594,000

Current Ratio

=

Current Assets

=

83,800,000

=

2.14

=

67,387,000

=

2.36

Current Liabilities

39,186,000

28,594,000

Net Current Assets % TA

=

Net Current Assets

=

44,614,000

=

38.21

=

38,793,000

=

40.35

Total Assets

116,757,000

96,140,000

Debt Management

1/ 29/ 2012

1/ 29/ 2011

Interest Coverage

=

Operating Income

=

17,828,000

=

594.27

=

14,209,000

=

102.96

Non-Op Net Interest Income

-30,000

-138,000

Asset Management

1/ 29/ 2012

1/ 29/ 2011

Total Asset Turnover

=

Revenue

=

188,215,659

=

1.77

=

164,035,412

=

1.7

Total Assets

106,448,500

96,244,000

Receivables Turnover

=

Revenue

=

188,215,659

=

8

=

164,035,412

=

8.17

Receivables - Net - Avg over Period

23,541,000

20,082,000

Accounts Payable Turnover

=

Revenue

=

188,215,659

=

12.86

=

164,035,412

=

11.94

Accounts Payable

14,640,000

13,743,500

Accrued Expenses Turnover

=

Revenue

=

188,215,659

=

67.06

=

164,035,412

=

52.17

Accrued Expenses

2,806,500

3,144,500

Property Plant &

Equip Turnover

=

Revenue

=

188,215,659

=

6.99

=

164,035,412

=

6.05

PPE - Net - Avg over ...