A Ratio Analysis Of WH Smith

A Ratio Analysis Of WH Smith As a public limited company majority of the funds available for WH Smith to operate at any point in time is provided by owners in form of share capital and several forms for capital reserves and retained earnings. But for the purpose of this analysis, share capital will be referred to as funds provided by owners, which was  £35million for both 2008 and 2009. However it is important to note that the total equity increased from  £161m in 2008 to  £188m in 2009. The main reason for this was in increase in the retained earnings from  £329m in 2008 to  £365m in 2009. FUNDS PROVIDED BY CREDITORS Non -current liabilities (including trade and other payables, tax obligations, bank overdrafts and borrowings and short-term provisions) added up to  £303m in 2008 and  £281m in 2009, while non-current or long-term liabilities amounted to  £24m in 2008 and  £25m in 2009. Thus, total liabilities and accrued payments reduced from  £327m in 2008 to  £306m in 2009. This is largely due the fact that  £25m bank overdrafts were drawn in 2008 while no overdrafts were drawn in 2009. This means WH Smith is relying mainly on retained earnings and share capital as the major source of cash for the business year. PROFITABLITY Profitability measures the profit margin of the business (WH smith) in a financial year. In this analysis however, the profitability of WH Smith will be calculated and compared for the 2008 and 2009 financial years by relating pre-tax profit as a percentage of sales; and also pre-tax profit as a percentage of fixed asset. This can be represented using the formula below: CONCLUSION WH Smith has improved its profit margin by a small percentage of 0.5% in 2009 from 5.62% to 6.12% as a result of more sales in higher margin categories such as confectionery and books. This means that out of  £100 sales the company made  £5.62p in 2008 and  £6.12p in 2009. Fixed assets generated 4.57% more profit in 2009 than in 2008, which signifies a more efficient use of capital and fixed assets. Thus we can conclude that the company is being managed well despite stiff competition from other large companies such as Borders and the prevailing economic circumstances. GROWTH Turnover Increase total sales reduced from  £1352m in 2008 to  £1340 in 2009 Profit after tax increased from  £59m in 2008 to  £64m in 2009 Total fixed assets reduced from  £247m in 2008 to  £232m in 2009 CONCLUSION From the above point we can conclude that total sales and total fixed assets have reduced considerably between 2008 and 2009, whereas, profit after tax has increased. This signifies that WH Smith is not focused on growth at the present (due to the prevailing economic conditions), rather they are focused on consolidation and profit maximization (which in essential in the survival of any business especially in the short run). This was done by getting rid of unused or unnecessary fixed assets e.g. properties, plants and equipment was reduced from  £177m in 2008 to  £163m in 2009 and utilizing the available resources efficiently. TRADING PERFORMANCE The performance analysis of any company does not carry adequate validity without making reference to the performance of other companies in the same sector, because a comparison of its performance must be measured against that of its competitors. Trading performance is calculated by using the gross profit as a percentage of share holders funds: Earnings per share for 2008 and 2009 were 35.3p and 41.3p respectively. Please refer to page 9 of the financial statement for details. CONCLUSION In an industry where demand and sales are greatly influenced by consumer income and demographics, the performance of WH Smith will depend largely on the marketing strategy and their ability to offer specialized products at lower prices. In 2008 WH smith had a return on share holders fund for 2008 was 47.20% while it was -1.93 for Amazon.co.uk ltd for the same year. At the end of the financial year, earnings per share went up 17% from 35.3p to 41.3p LIQUIDITY Current ratio also known as the working capital ratio measures the amount of cash available to a business in form of stock and creditors and is referred to as the working capital. WH Smith has been able to increase its level of liquidity from 0.8 in 2008 to 0.93 in 2009. This increase could be attributed to an increase in the bank balance from  £22m in 2008 to 47m in 2009 however, not a large proportion of resources were tied up in stock during the same period as inventories only increased by  £4m from  £147m in 2008 to  £151m in 2009. However, WH Smith was able to increase its ability to meet short-term obligations and settlement of a major proportion of their current liabilities. It is important to note however that the ratio of current assets to current liabilities is still less than 1, this means that WH Smith still needs to improve on these figures further by reducing the total current liabilities or increasing their total current assets. Although it is widely believed that a reasonable current ratio should fall between 1.5:1 and 2:1, given the prevailing economic conditions in this period, we can safely conclude that WH Smith is doing exceptionally well. Also, the liquid ratio reveals that a large amount of resources are tied up in liquid form, which could affect the companys performance in the long run if the sales is not improved upon. SAFETY Gearing Gearing measures the relationship between a companys capital employed and its long time liabilities. It gives us an idea of any companys ability to pay back its long term liabilities. However, the acceptable gearing ratio for most companies is 50%, but the lesser the better. It is calculated as follows: WH Smith has been able to reduce the gearing of the business 1.81% from 14.90% to 13.29% and the gearing ratio for both 2008 and 2009 is almost at zero, this means that WH Smiths propensity to generate profit and returns on capital employed is high. Therefore, shareholders can expect some dividend at the end of the business year. Also, the business will not have to struggle to service long term liabilities (e.g. loans with interest) especially in bad years. EFFICIENCY This is also known as return on capital employed and is used to measure how effective a business has used its available resources to generate profit within a certain period. It is usually represented by the formula below: It can be deduced from the above figures that WH Smith has been able to use their fixed assets more efficiently in 2009 than in 2008 by 3.3%, despite the reduction in the total amount from  £247m to  £232m. Although the efficiency of the total assets has hardly improved in the same period, with the difference being 0.7%, the most noticeable increase in efficiency is that of fixed assets which has increased by 3.3%. CONCLUSION In the year ending 31 August 2009, WH Smith recorded a total (including non-book sales) turnover of  £1,340m which was lower than  £1,352m recorded in the previous year. Pre-tax profit increased from  £76m in 2008 to  £82m in 2009. And also, earnings per share increased from 35.3p in 2008 to 41.3p in 2009 Total sales reduced to  £1,340m from  £1,352m in 2008 (where like for like sales dropped 5%, travel sales grew by 8% and high street sales also dropped by 5%). Whereas, WH Smith has improved its profit margin by 0.5% in 2009 from 5.62% to 6.12%. This improvement in gross profit margin was enhanced by tight cost control and a reduction of the total fixed assets. WH Smith has also been able to increase its level of liquidity from 0.8 in 2008 to 0.93 in 2009. This increase could be attributed to an increase in the bank balance from  £22m in 2008 to 47m in 2009. Although a substantial amount is still tied up in stock, which could be a problem in the future. Therefore, WH Smith needs to come up with sale strategies that will quickly clear up the stock. In 2009 however, WH Smith was able to increase its ability to meet short-term obligations and settlement of a major proportion of their current liabilities. Although, WH Smith still needs to improve on these figures further by reducing the total current liabilities or increasing their total current assets. WH Smiths propensity to generate profit and returns on capital employed is very high with gearing being reduced by 1.81% from 14.90% to 13.29%, and also, the gearing ratio for both 2008 and 2009 is almost at zero, this means that shareholders can expect some dividend at the end of the business year even in bad years (Dividend per share increased to 16.7p in 2009). Also, the business will not have to struggle to service long term liabilities (e.g. loans with interest) especially in bad years. Finally it is worthy of note that WH Smith has been able to employ their fixed assets more efficiently in 2009 than in 2008 by 3.3%, despite the reduction in the total amount from  £247m to  £232m. RECOMMENDATIONS WH Smith is doing very well given their financial performance in the past year despite the prevailing economic circumstances. It is important to note that a large proportion of WH Smiths profit in the 2009 financial year was generated from the travel business (which includes outlets in train stations, airports, highway service stations etc.) where total sales increased by 8% driven mainly by new business wins and acquisitions. Therefore, WH Smith should focus on setting up more travel shops in areas not yet covered. Competition to sell the highest number of bestsellers is tough, as high-street bookshops are being undercut on price by supermarkets and online booksellers. Publishers appear to be offering supermarkets and online booksellers the highest discounts on their highest-profile books, allowing lower prices to be offered in these outlets. -Isla Gower ed. 2008, marketing report, pg1 Another important area that WH Smith should focus on is the online book sales, which makes companies like Amazon.co.uk ltd a major competitor. Although WH Smith already sells books online, there should be more marketing and promotion in this area, which would eventually lead to a market expansion if harnessed properly. Also, the digitization of books through the use of e-books has made remote downloads and print-on-demand possible, and this has remarkably reduced the cost of production and can easily put booksellers such as WH Smith out of business.

A Comparison of Wealth in Antony and Cleopatra and The Tempest Essay

The Importance of Wealth in Antony and Cleopatra and The Tempest  Ã‚     Ã‚  Ã‚   Wealth and it’s relationship to poverty figures in heavily in two of the plays we have read thus far in class. In both Antony and Cleopatra and The Tempest we are treated to characters and situations that deal with wealth and poverty. Specifically however, both plays have visions of an abundance of wealth that seems at times both corruptible and foolish. In Antony and Cleopatra we have their excessive behavior and flaunting, which proves to be a vice that grips them much to tightly. In The Tempest, characters stranded on a deserted island have their own unique versions of achieving that said abundance. Shakespeare treats the topic similarly in both plays, and uses it to expose the very nature of abundance.    For example, in Antony and Cleopatra we are treated to many scenes describing the level of excess the title characters are involved in. In Act 3, scene 6 Shakespeare writes, Here’s the manner of’t: I’th’ market-place, on a tribunal silver’d, Cleopatra and himself in chairs of gold Were publicly enthron’d. At their feet sat Caesarian, whom they call my father’s son, And all the unlawful issue that their lust Since then hath made between them. Unto her He gave the stablishment of Egypt, made her Of lower Syria, Cyprus,Lydia, Absolute Queen  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (2-10).    With that passage, Shakespeare (through Caesar) is criticizing the lavishness and public showings of both Antony and Cleopatra. He seems to think it grotesque to have them sitting in front of everyone in â€Å"chairs of gold†.    Even earlier, Antony’s abundant behavior is made obvious. Shakespeare writes, â€Å"he fishes, drinks, and wastes/The lamps of night in ... ... riches? His want of this abundance is like the others, made worse by the fact that he at first had no idea what it was. He had something better (although some would view him as poor), and now a glimpse of wealth has changed him.    In the end, by looking at these two plays, we can see that wealth can indeed be a corrupting force in Shakespeare’s world. Although wealth may not necessarily be just money. It can come in many forms; power, idleness, etc. And in today’s world where money-winning game shows are what pass for culture and entertainment, it seems all the more relevant.    Works Cited:    The Riverside Shakespeare: Second Edition Houghton Mifflin Company Boston/New York   G. Blakemore Evans and J.J.M Tobin eds. Shakespeare’s The Tempest: World’s Classics The Oxford Shakespeare. Oxford University Press New York/London.   Ed. Stanley Wells   

Chinese Artifacts Essay

The artist of this calligraphy scroll, Zhao Mengfu, was highly praised by the Yuan emperor Renzong as unrivaled traditional Chinese polymath (for a lack of a better word). It is said that the emperor admired him for possessing the following seven outstanding qualities: wide learning, Song royal ancestry, elegant and charismatic appearance, pure character and righteous conduct, literary accomplishment, mastery of calligraphy and painting skills, and profound knowledge of Buddhist and Daoist teachings. As an leading and influential calligraphy during his era, Zhao was able to successfully advocate and promote many of the views that he had on Chinese calligraphy. Zhao supported a return to the ancient models, which integrated the Jin (265 – 420AD) and Tang (618 – 906AD) dynasty styles to synthesize a new norm for standard and cursive scripts. In later eras, many printed texts were modeled after the standard script that he helped create. Furthermore, the cursive style script, depicted in this scroll titled Four Anecdotes from the Life of Wang Xizhi, became the foundations of the informal calligraphic styles of those how succeeded him. One of the four anecdotes from the â€Å"Life of Wang Xizhi† tells the story of a time when Xizhi, a ‘calligraphic’ sage, was extremely fond of the [graceful appearance of] geese. In Shanyin there was a Daoist monk who had raised a flock of more than ten fine geese. One morning Wang decided to take a small boat and go there. He was delighted with the geese and wanted to buy them, but the monk refused to sell. Wang tried in vain to persuade him. Finally, the monk told Wang that he loved Daoist philosophy and had always wanted a transcription of Laozi’s Daodejing with its commentary by Heshanggong. He had already prepared the silk, but no one was qualified to write it. He asked if Wang would condescend to transcribe two chapters each from the Dao and De sections, for which he would give Wang the whole flock. Wang stayed for half a day to write out the chapters, then he caged the geese and returned home. (Citation) In many ways, this story possesses many aspects of traditional Daoist philosophies. Firstly, the events and interactions between the Monk and Xizhi is highly reflective of the ‘interdependence’ between beings. Furthermore, the fact that the Monk refuse to trade his geese through monetary means underlines Daoist de-emphasis of material objects, especially something as superficial as money. Rather, the Monk was willing to give up his geese for an implementation Xizhi’s skill and mastery of calligraphy. In a way, this reveals belief that an individual should play the role of what he or she was ‘meant’. In other words, the Monk’s offer of his geese for calligraphy mirrors some sort of a natural guidance for Xizhi to walk in accordance to the Way. In summary, the story told through the calligraphy of this scroll is highly relavent to the Daoist themes that were studied throughout the course. Object : Buddhist stele, Tang dynasty (618–906), ca. 700 Origins: China Material: Black limestone Size: H. 64 1/2 in. (163. 7 cm) This relic originates from the temple in the Xinxiang County in the central Chinese province of Henan. A stele is a stone or wooden slab, generally taller than it is wide, erected for funerals or commemorative purposes, most usually decorated with the names and titles of the deceased or living — inscribed, carved in relief or painted onto the slab. In this case, the Buddhist stele is made of black limestone and is curved to give the outline of the figure of Guanyin. In this stele, we see many of the symbolism commonly studied in the Chinese Buddhism. Firstly, the graceful of stance the pair of bodhisattvas implicates a noble yet welcoming gesture which is reflective of the characters theor sage-hood. Secondly, judging by the small objects inscribed on the crown – a figure of the Buddha – they represent Guanyin (Avalokiteshvara), one of the principal bodhisattvas associated with the Pure Land cult. Despite the damages accumulated over time, the gentle S-shape swing of the bodhisattvas’ bodies gives an essence of individuality to each of the figures. The Western Pure Land sect, derived from the teachings of the Buddha Amitabha, was the sect that attracted the largest number of followers. As we have discussed in class, this was most likely due to the motivation that salvation awaits each and every devotee in a paradise situated in the western realm of Buddhist cosmology. The ability of Buddhism to discuss subjects like the afterlife was one of the largest sources of its popularity. This black limestone stele is one of the best examples of Buddhist devotional art in the Tang period of Chinese history. Object: Central watchtower, architectural model, Eastern Han dynasty (25–220), 1st–early 3rd century Origin: China Material: Earthenware with green lead glaze Size: H. 41 in. (104. 1 cm) The Han dynasty (206 B. C. –220 A. D. ) is deemed to be one of the most important and inflectional dynasties in pre-modern China due to it lasting effects in imperial structure and formation of a national consciousness. Chinese people, until today, still refer to themselves as ‘Han Chinese†. Furthermore, the architecture styles that were established during the Han period layed the ground works for the architecture of the eras to follow. Han architecture was a grand improvement to the architecture of those that precede them; it includes vast palatial complexes, towered gateways, and city walls were built as symbols of power and prestige as well as for defense. This model art piece embodies many of the essential features of Han architecture: the overhanging tiles supported by the roof, the four sided style infrastructure and the stacking effect. In many ways, this specific model, less a few details, is reminiscent of the temple building the class visited for the lecture on Buddhism. In relation to our studies, a great variety of these architectural models were used in the decoration of the tomb in the Han era to show the status of the person being buried. Object: Spouted ritual wine vessel (guang), Shang dynasty, early Anyang period (ca. 1300–1050 b. c. ), 13th century b. c. Origin: Possibly Anyang, Henan Province, China Material: Bronze Size: W. 13 in. (33 cm) This artifact, a bronze casted vessel, dates back to the late Shang era (ca. 1300–1050 B. C. ). The shape of the wine vessel is said to be loosely based on a figure of a bird; this is identifiable through the hooked beak feature and glaring eyes effect from the face on view. As we have studied, the Shang people had many beliefs about the spiritual world. This vessel is believed to have been used to pour wine and other beverages in ceremonies involving Shang ruler and their ancestors and supernatural forces. Other feature on the vessel includes coiled serpents emerging from the wings, roaring tiger-dragons prowling along the sides, horned bird that serves as a handle. This existence an artifact of this age gives us insights into the superior technology of casting in ancient China. The complicated multilayered designs are unparalleled by other cultures of the time. It is believed that the technique used for this the bronze casting is through a ceramic mold and the usage of an interior clay core. Motel bronze is then poured into filled the empty space between the intricate design and the core. Once the clay core was emptied out, the result is the astonishing bronzed vessel with complex designed as described. Again, such artifacts can be used to validate the hypotheses and speculations about the technologies and lifestyle during an ancient civilization like the Shang.

The Overlooked Rights of Men in Abortion Essay - 715 Words

Abortion is a controversial topic regarding the rights mainly of the fetus and the mother. Men’s rights and involvement are generally overlooked in the abortion process. Since females are the carriers of the embryo, most of the time male’s decisions are not incorporated into the final conclusion. There are several debates regarding abortion and whose choice it should be to decide in terminating the fetus. Every father has different outcomes in a pregnancy and how much their decision should be included in the abortion depends solely on their involvement in the mother’s life. When the female deliberately engages in sexual intercourse, it becomes her responsibility to carry the embryo to term and to allow the fetus to have a right to her†¦show more content†¦According to the Pleading Men and Virtuous Women article it states, â€Å"In this case, the man has voided any possible claim he has to the fetus when he decided to impose his will violently upon the w oman against her consent. The violence done unto her nulliï ¬ es any requirement on her to regard the man’s feelings or interests concerning the termination of the fetus† (Manninen 11). When a rapist violates a woman’s autonomy, he invalidates his reasoning to have a say in the decision of terminating the fetus. If the rapist’s desire was to have the female carry the embryo to term, the female would be obligated to proceed with an abortion. In the Decision To Abort article it states, â€Å"Because of its origin, this fetus is not a legitimate object of interest for the rapist and hence is not his. Consequently, if she decides to abort, she doesnt harm the rapist in anyway† (Hanrahan 28). Obtaining an abortion for the sake of the mother does not violate the rapist’s autonomy. Terminating the pregnancy does not result in any harm done to the rapist by the mother. The offspring is not considered to be the rapist’s because it is a result of an unlawful interest for him nor is it the mothers because she did not pursue her interest in a morally legitimate way. The Decision To Abort article states, â€Å"What we learn from this case is that if a fetus is the product of someones illegitimate pursuits, then the fetus shouldnt be considered that persons† (Hanrahan 28). When a man pursues hisShow MoreRelatedSince Its Beginning, Women’S Reproduction Has Been A Controversial1393 Words   |  6 Pagestopic in the United States. Views on sexuality and gender, civil rights movements, and religious views have all had an effect on the control of women’s reproduction. While historical events have had some effect on current debates, some events have been overlooked or ignored by those involved in disputes involving reproductive rights. One of these time periods that is often not discussed is the colonial period. 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