StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Amec Plc and Carillion Plc - Math Problem Example

Cite this document
Summary
The company that is the subject of this paper is Amec Foster Wheeler, a consultancy, engineering, and project management corporation set up fifty years ago with a wide global presence, managing oil, gas, minerals, and metals exploration as well as energy generation and infrastructure development…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
Amec Plc and Carillion Plc
Read Text Preview

Extract of sample "Amec Plc and Carillion Plc"

Download file to see previous pages

The firm has about 40,000 employees, a turnover of just over four billion, and a net income of one hundred million pounds in the last financial year (Carillion, 2013, 3). These two companies are quite similar in their operations with minimal differences emerging in various operational structures and ventures. Consequently, this paper seeks to examine and compare their financial performance in the last trading year using the following financial ratios:i) Return on Capital EmployedROCE = Income prior to taxation and interst charges / Capital EployedAmec = 243,000,000 / 253,000,000 = 0.

9604743083003953Carillion = 187,800,000 / 236,300,000 = 0.7947524333474397These figures indicate that Amec has a higher income per capital employed compared to Corillion.ii) GearingVarious ratios can be used to determine the gearing ratio of the companies. These include:Debt to Equity Ratio = Total Debt / Total EquityAmec = 129,000,000 / 1,124,000,000 = 0.1147686832740214Carillion = 628,900,000 / 983,600,000 = 0.6393859292395283Equity Ratio = Equity / AssetsAmec = 1,124, 000,000 / 2,384,000,000 = 0.

4714765100671141Carillion = 983,600,000 / 3,639,900,000 = 0.2702272040440671Debt Ratio = Total Debt / Total AssetsAmec = 129,000,000 / 2,384,000,000 = 0.0541107382550336Carillion = 628,900,000 / 3,639,900,000 = 0.1727794719635155The gearing ratios indicate that Amec is a better place in terms of financial standing than Carillion. The debt ratios for Carillion indicate that a lot of revenue and equity is required to service debt and in terms of dismal financial performance the company could operate unsustainably. iii) Liquidity RatiosCurrent Ratio = Current Assets / Current liabilitiesAmec = 1,224,000,000 / 1,004,000,000 = 1.

219123505976096Carillion = 1,683,200,000 / 1,661,600,000 = 1.012999518536351Quick Ratio = (Cash & Cash Equivalent + Short term Investments + Accounts Receivable) / Current LiabilitiesAmec = 1,224,000,000 / 1,004,000,000 = 1.219123505976096Carillion = 1,683,200,000 / 1,661,600,000 = 1.012999518536351The liquidity ratios indicate that Amec is better placed to handle short term cash demands that may arise compared to Carillion whose liquidity ratios are lower.iv) Sales Per Capital EmployedSales Per Capital Employed = Sales / Capital EmployedAmec = 3,974,000,000 / 253,000,000 = 15.

70750988142292Carillion = 4,080,900,000 / 236,300,000 = 17.26999576809141The sales per capital employed indicate higher figures for the Carillion PLC compared to Amex.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Amec Plc and Carillion Plc Math Problem Example | Topics and Well Written Essays - 250 words, n.d.)
Amec Plc and Carillion Plc Math Problem Example | Topics and Well Written Essays - 250 words. https://studentshare.org/finance-accounting/1889318-financial-statement-comparison-of-amec-plc-and-carillion-plc
(Amec Plc and Carillion Plc Math Problem Example | Topics and Well Written Essays - 250 Words)
Amec Plc and Carillion Plc Math Problem Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1889318-financial-statement-comparison-of-amec-plc-and-carillion-plc.
“Amec Plc and Carillion Plc Math Problem Example | Topics and Well Written Essays - 250 Words”. https://studentshare.org/finance-accounting/1889318-financial-statement-comparison-of-amec-plc-and-carillion-plc.
  • Cited: 0 times

CHECK THESE SAMPLES OF Amec Plc and Carillion Plc

Concepts on Strategic and Quality Management

The succeeding discussions below will detail the evolution of quality mostly observed in manufacturing and service companies.... Although manufacturing is different from construction, quality is a major aspect that needs to be implemented in both industries.... … Quality in relation to PPP has to be viewed both in the government and private partner perspectives....
31 Pages (7750 words) Dissertation

Analysis of Balfour Beatty plc Business and Competitive Environment

Balfour Beatty with 4,938 million total revenues and 134m profits in 2005 and having 27,592 employees in over 20 principal countries is leading provider of construction, rail engineering and investments to international markets.... Balfour Beatty draws a major part of its revenues from building and maintaining large-scale public infrastructure and private sector assets....
16 Pages (4000 words) Essay

Private Finance Initiative and UKs Construction Industry

The high profit available to investors in PFI schemes explains why John Laing plc has sold off its basic construction company and bought up stakes held in such projects by hard-pressed Amey plc.... According to the Major Contractors Group (MCG), a major construction trade association which represents UK firms such as carillion (formerly part of Tarmac), Costain and Amec, construction companies engaged in the private finance initiative expect to make between three and ten times as much money as they do on traditional contracts....
6 Pages (1500 words) Essay

Research Balfour Beatty plc

In the year 2000, BICC changed its name to Balfour Beatty plc.... Balfour Beatty is a U.... based company and a pioneer worldwide in the Fields of Construction, Engineering, and Management Services with its business segments as Building, Rail and Engineering.... hellip; The Engineering sector is concerned with the constructions of tunnels, bridges and towering of electric cables....
6 Pages (1500 words) Essay

Finance and Accounting of Carillion Plc

In the paper “Finance and Accounting of carillion plc” the author discusses Carillion's balance sheet for the year 2013, which shows that they had £14.... hellip; The author states that from the balance sheet of carillion Company, the issue of insolvency and bankruptcy is addressed....
4 Pages (1000 words) Research Paper

Employee training at B&Q Plc

This paper “EMPLOYEE TRAINING AT B&Q plc” aims at discussing Mentoring and Vestibule Training as two of the training methods that are used at B&Q plc.... There has been a various change in the employment policy at B&Q plc.... About a decade ago, many business analysts criticized B&Q plc.... As for the case of B&Q plc....
8 Pages (2000 words) Essay

Analysis of balance sheet and income statement

On a similar note, carillion plc is headquartered in Wolverhampton, United Kingdom.... carillion plc offers services on management in the following fields: efficient energy, buildings and infrastructure, project management and facility management.... carillion plc operates in the following business segments: construction services, support services, Middle East construction services and support services (Annual report: carillion plc 2013, pp....
2 Pages (500 words) Essay

Sources of Capital in Duke Plc

This study “Sources of Capital in Duke plc.... hellip; The author states that Duke plc.... For large multi-national organizations like Duke plc.... uke plc.... rdquo; is about all the sources of capital available to the company to finance its long-term projects....
10 Pages (2500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us