Contents

• 1 INTRODUCTION ……………………………………
• a. HMV Group Plc.………………………………………...
• b. GAME Group Plc. ………………………………………
• 2 FINANCIAL ANALYSIS ……………………………
• a Liquidity …………………………………………….
• b Cash flow ……………………………………………….
• c Gearing ……………………………………………
• d Efficiency ………………………………………………
• e Investment..……………………………………………..
• f Profitability……………………………………………
• 3 PYRAMID ANALYSIS
• 4 CONCLUSION ……………………………………….
• REFERENCES ……………………………………….
• APPENDICES…………………………………………
• 1. Profitability ratios …………………………
• 2. Liquidity ratios …………………………….
• 3. Gearing ratios ……………………………...
• 4. Efficiency ratios …………………………..
• 5. Investment ratios …………………………..
• 6. Cash flow ratios …………………………..

Description

Financial performance analysis can be said to be the evaluation of the firm’s financial well being through assessing the company’s financial statements in particular ways in order to determine the financial stance, for future planning, estimation of the firm’s size and growth over specific period.
This analysis is useful since it recognizes the threats that a firm confronting, the opportunities that are available to the firm, the strengths as well as the weakness that the firm is facing by using various techniques that draw a comparison between the profit & loss statement and balance sheet statement items.
In addition the importance of this analysis is provide the management with appropriate information for decision making in a timely manner, also to assist in putting up sufficient controls, as well as show the most proficient ways of utilization the resources at the disposal of the firm.
There are different analysis that can be used in examining the firm’s performance such the ratio analysis, horizontal analysis, vertical analysis and the trend analysis. This analysis will focus more on the ratio analysis which is a very resourceful tool. A ratio is an expression of one number in terms of another.
Then the ratio is examined so as to determine the strength of a relationship that exists between the two figures. Hence ratio analysis that will be undertaken will exhibit the profitability, efficiency, cash flow adequacy, liquidity, investment and gearing of the HMV Group plc and Game Group plc that operate in the same industry which signifies their overall performance over several financial years.