Analysing firms financial performance and position

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Reference no: EM133164604

Financial Statement Analysis

Alpha-Mart Plc is a discount grocery retailer which has been in business for several years. It operates a large store-base across Europe with a significant presence in the UK, where it currently operates over 500 stores. Alpha-Mart has steadily increased its market share within the UK retail industry in recent years.

According to a recent retail analysis, UK grocery shoppers are increasingly relying on more channels than ever before and in response, retailers are developing new store formats that cross traditional boundaries. For instance, superstores such as Tesco have successfully moved into convenience (Tesco Metro) and online shopping. As consumers are increasingly leading busy lives, "convenience" has been identified as the key to future growth in the UK grocery retail sector. Alpha-Mart's directors are keen to keep to pace with recent trend and are considering additional investment to expand its convenience outlets. However, before embarking on the new project, they would like to get an assessment of their financial performance and position over the past couple of years. You have been presented with the financial statements for Alpha-Mart plc for the year ended 31st March 2017 and 2016 as follows.

Required

a. Calculate 9 ratios (see below) that can help illustrate the financial performance and financial position of the business in the years ended 31st March 2017 and 2016. The ratios should include the following:
- 3 profitability ratios
- 3 liquidity / gearing ratios
- 3 efficiency ratios

b) Using the information in the question and the ratios you have calculated, analyse the financial performance and position of the company.

c) Briefly explain the information contained in the cash flow statement and its relevance in analysing firm's financial performance and position.

Reference no: EM133164604

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