Financial Statement Analysis of

Richard Pieris Exports PLC

Financial Statement Analysis of

Richard Pieris Exports PLC

UCD12.2:Financial Accounting (Group Assignment)

Richard Pieris Exports PLC

OverviewCompany Background

Financial Ratios

Liquidity Ratios

Activity Ratios

Financial Leverage Ratios

Profitability Ratios

Per Share Ratios

Company BackgroundIt is one of the largest employment provider in the private sector.The group enjoys of it’s local market leadership in its traditional sectors of Rubber, Tires, Plastics, Retail and Distribution.In addition the Group has in recent times ventured into Plantations, Financial Services, Construction Logistics.

Financial Ratios

Liquidity RatiosUsed to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

RecommendationTo improve this ratio we have to increase funding of

inventory by short term creditors and trying to maximize

the cash balance and also reduced the current liabilities. To

reduce the current liabilities we have to pay our attention

to following strategies,

Pay off some current liabilities.

Funding of long term assets through equity

and long term loans.

Activity Ratios

Recommendations

Debtor’s collection period ratio was reduced. It’s

good for the company. For that it is better to

improve the credit sales further.

Total assets turnover is in a improvable rate in this

company. To improve that sales have to be improved

furthermore (finding new market etc.)

Financial Leverage RatiosUsed to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations.

Equity of the company is reduced leap &

bounds. To increase that we have to

achieve large amount of profit.

Using of fixed and variable rate borrowing

to strike a balance.

Reducing long term debts.

Recommendations

Profitability Ratios

Recommendations

Decreasing cost of sales percentage and

increases sales percentage. To upward

movement of customer demand and

minimizing costs to help increase to profit.

Reduce direct cost & to maximize the

profit.

Per Share RatiosPer-share data can involve any number of items in a company's financial position. In corporate financial reporting - such as the annual report.

Recommendations

Share value is improvable rate.

Existing rate is good. To improve

that introducing new product to

increase net profit.

Improve the working capital cycle.

Our Crew Nipuna Hasinthaka.

Tharushika Ruwangi.

Sudeepa Dahanayake.

Dilki Malsarani.

Prashan Charuka.

This is the time for Questions.

Thank You all for lending us your kind

ears!