FINANCIAL AND GROWTH STRATEGY ANALYSIS

MCBRIDE PLC BENCHMARKING PZ-CUSSONS PLC FOR

FUTURE DECISION MAKING.

Module: Accounting for Decision Makers MS7SL80D

Student Number: 21452804
Assignment Name: Financial and Growth strategy analysis for Mc Bride PLC
benchmarking Pz Cussons PLC for Future Decision making
Lecturer Name: Chrishain Jayalath
Word Count: 1692 (10% Excluding Table of Content)

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Table of content

1. Introduction……………………………………………………………………………..……3
1.1 McBride Company…………………………………………………………………...............3
1.2 PZ Cussons Company………………………………………………………………………………3

2. Ratio analysis comparison for McBride and PZ Cussons Company for last 5 years...….4
2.1 Performance ratio……………………………………………………………………………………...4
2.2 Profitability ratios…………………………………………………………………………………..…4
2.3 liquidity ratios………………………………………………………………………………...….……6
2.4 Efficiency ratios………………………………………………………………………………...….….7
2.5 Investor ratios…………………………………………………………………………………....……9
2.6 Gearing ratios………………………………………………………………………………..………10

3. Horizontal Analysis Comparison of Income statements for Mc Bride and PZ Cusson...10

4. Vertical Analysis Comparison of Income statements for Mc Bride and PZ Cusson…...11

5. Comparison of Balance sheet of McBride and Pz Cusson….............................................12

6. McBride PLC Year on Year Performance Comparisons………………………………...16

7. Future Growth Plans of McBride and Financial Review………..……………………….17

8. Limitations in Ratio and trend analysis…………………………….……..…………….…19

9. Conclusion………………………………………………………………..………………….19

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1. Introduction.

Aim of this report is to interpret the financial performance of Mc Bride PLC for last 5 years benchmarking
competitor Pz Cussons PLC to make better decisions for future.

1.1 Mc Bride PLC.

Leading European Supplier and a Manufacturer Domestic

Households and Professional Cleaning. Headquartered in
London, UK and founded in 1927.

Size of Organization - Operates with 3,400 employees.

Legal Entity - Listed in London Stock exchange under the

Sector of Personal care, Drug and Grocery store and a Public limited company
(McBride PLC, 2020)
(Figure 1)
1.2 Pz Cussons PLC

British Manufacturer of Personal care products and

Consumer products. Operates globally mainly in Africa
and Commonwealth nations. Headquartered in
Manchester, UK and founded in 1879.

Legal Entity- Listed in London Stock exchange under

the Sector of Personal care, Drug and Grocery store.
(Pz Cusson, 2020)
(Figure 2)

1.3 Product Portfolios.

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2. Ratio analysis comparison for McBride and PZ Cussons Company for last 5 years

2.1 Performance Ratios

Return on Capital employed

Return on Capital Employed

20.00%
18.00% 17.86% 18.53%
16.00% 16.62%
15.35%
14.00% 13.82%
13.00%
12.00%
11.12% 11.07%
10.00%
8.00%
6.00% 5.90%
4.00%
2.00% 1.46%
0.00%
2019 2018 2017 2016 2015

Mcbride PZ Cusson

(Figure 3)
Purpose of ratio is to monitor effectivity of company in using its Capital to create profit.
Useful for investors.
Positive and Higher better and should be higher than capital cost.
McBride PLC Return on Capital employed value is on a positive note and comfortably above and
equal to the industry average of 12% and the Pz Cusson rate of 5.90% (SimplyWallStreet, 2020)

2.2 Profitability Ratios

Gross Profit Margin

Gross Profit Margin

42%

40% 40%
39%
38% 38%
37%
36% 36% 36%
35%
35%
34% 34%
33%
32%

30%
2019 2018 2017 2016 2015

McBride PZ Cusson

(Figure 4)

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 Minor Fluctuations reflects both companies managing costs well.
McBride PLC 6% rise in Cost of sales in 2019 had caused Gross profit ratio deduction, though
revenue had grown by 5%.
McBride has to be more conscious about rising Cost of Sales.
Pz Cusson PLC compared to Mcbride reducing the cost of sales and maintains a healthy gross profit
ratio.

Operating Profit Ratio

Operating Profit Ratio

12.00%
11.22% 10.94% 10.94%
10.00%
8.76%
8.00%

6.00% 6.34%
5.71%
4.61% 4.83%
4.00% 3.69%
2.00%
1.38%
0.00%
2019 2018 2017 2016 2015

McBride Pz Cusson

(Figure 5)

Purpose of Ratio is to monitor the control over costs of the company. Operating profit ratio
determines the profits the company makes after paying for variable costs.
In both companies due to poor cost management the operating profit ratio is degrading.
McBride noted a 16% growth in selling and distribution cost in 2019 and the raw material costs.
(to be discussed)

Net profit Margin

Net profit Margin

10.00%
8.00% 8.15%
7.07%
6.00% 5.60% 6.03%
4.00% 3.74%
2.00% 2.50%
1.12% 1.26%
0.00% 0.49% -0.10%
-2.00% 2019 2018 2017 2016 2015

Mc Bride PZ Cusson

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(Figure 6)
Purpose of ratio is to monitor actual profits over sales. High net profit margin means company is
more efficient. In net profit margin calculations all profits are included.
2018 Mcbride Net profit margin degraded due Sales decline of 2% to prior year (Figure 13).
2019 the revenue of McBride increased by 5% prior year. Based on that Profit margin increased,
comparatively to PZ cusson poor revenue performance due to sales decline in Africa region.

2.3 Liquidity Ratios

Current Ratio

Current Ratio
2.00
1.80 1.86
1.60 1.67
1.40
1.20
1.09 1.05 1.09
1.00 1.01
0.85 0.88 0.90 0.86
0.80
0.60
0.40
0.20
0.00
2019 2018 2017 2016 2015

McBride PZ Cusson

(Figure 7)

Purpose of ratio is to monitor the companies’ ability to pay short term debts. (Liquidity).
Standardized current ratio is 2:1.
McBride Current ratio is above 1 for last 5 years which is effective since Mcbride into retail
industry.
Compared to Mcbride, PZ Cusson is having issues with regard to current ratio. Pz Cusson Current
assets degrades gradually and that had caused a current ratio of below 1 for PZ Cusson, except in
year 2019.

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ACID Test Ratio

ACID Test ratio

1.40
1.31
1.20
1.00 1.03
0.80 0.75
0.69 0.70 0.69
0.60 0.57 0.60 0.63
0.52
0.40
0.20
0.00
2019 2018 2017 2016 2015

McBride PZ Cusson

(Figure 8)
Purpose of ACID Test ratio is to identify capability of companies’ liquid assets to pay its current
liabilities. If a company’s ACID test ratio is lower than Current ratio it means current assets of
company is relying on the inventory.
Mcbride ACID test ratio is below 1 from 2016 to 2018 which means the Mcbride current assets are
more relying on inventories.
2019 Mcbride ACID ratio has grown since Current liabilities decreased by 7%, similar incident
caused for PZ Cusson also.

2.4 Investor Ratios

Earnings Per share

Earnings Per Share

0.18
0.16 0.16
0.14 0.14
0.12
0.11
0.10 0.10 0.09
0.08
0.06 0.06
0.04 0.05
0.04
0.02 0.02
0.00
2019 2018 2017 2016 2015

McBride PZ Cusson

(Figure 9)

Useful for Investors current shareholders

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 Both companies’ Earnings per share is significantly degrading which is unfavorable. Low Earnings
per share means investors have less concern on investing over the company.
Reason for degrading of Earnings per share in both companies is the percentage decrease of Net
profit. Refer figure 13 and 14.

Dividend per Share

Dividend Per Share

0.05
0.04 0.04 0.04 0.04
0.04
0.03 0.03
0.03
0.02 0.02 0.02 0.02 0.02 0.02
0.02
0.01
0.01
0.00
2019 2018 2017 2016 2015

Mcbride PZ Cusson

(Figure 10)

Purpose of the ratio to monitor share of profits with shareholders.

Both companies pays dividend on a fixed rate since companies issue preference shares.
There are no major fluctuations caused in dividend per share ratio.

Dividend Yield Ratio

Dividend Yield Ratio

4.50%
4.00% 4.10%
3.50% 3.50%
3.20%
3.00%
2.50% 2.40%
2.30% 2.30%
2.00%
1.50%
1.00%
0.50%
0.00%
2019 2018 2017 2016 2015

McBride PZ Cusson

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(Figure 11)
Purpose of ratio is to monitor annual value of dividend in relation to market value.
The increase in dividend yield ratio of both companies is favorable.
Both companies are meeting the Dividend yield UK industry average of 4.0%. This means
Dividend Yield of both companies are favorable. (Dividend Yield-FTSE 100, 2020)

Dividend Cover ratio

Dividend Cover ratio

3.50

3.00 3.09
2.93 2.95
2.50
2.25
2.00 2.12
1.98
1.57 1.64
1.50 1.47
1.00

0.50

0.00
2019 2018 2017 2016 2015

McBride PZ Cusson

(Figure 12)

Purpose of ratio is to identify number of times that company can pay dividend to its shareholders.
Growing dividend cover ratio is favorable for Investors. Mcbride’s dividend cover ratio increased
significantly since 2017.
Compared to PZ cusson dividend cover ratio, the Mcbrides Dividend cover ratio growing
significantly which is favorable to attract investors.

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3. Horizontal Analysis Comparison of Income statements for Mc Bride and PZ Cusson

Mcbride Percentage growth

Figure 2019 2018 2017 2016 2015

Revenue 5% -2% 4% -3.3% 100%
Cost of sales 6% 0% 4% -5% 100.0%
Gross profit 2% -7% 4% 0% 100.0%
Selling, general and admin expenses 16% 6% -1% -3% 100.0%
Other operating charges 1% -7% 1% -12% 100.0%
Operating profit -16% -20% 21% 239% 100.0%
Interest -13% -74% 190% 0% 100.0%
Profit before tax -17% 38% -26% 892% 100.0%
tax 33% -26% 16% 167% 100.0%
Profit after tax 138% -62% -48% 2529% 0.0%

(Figure 13)

PZ Cusson Percentage Growth

Figure 2019 2018 2017 2016 2015

Revenue -7% -9% -1% 0.3% 100%
Cost of sales -8% -4% -2% 3% 100.0%
Gross profit -4% -16% 0% -8% 100.0%
Selling, general and admin expenses 1% -23% -2% -8% 100.0%
Other operating charges 11% 5% 2% -3% 100.0%
Operating profit -33% -29% 2% 0% 100.0%
Interest 11% 18% -10% -5% 100.0%
Profit before tax -37% -33% 5% 0% 100.0%
tax -35% -19% 50% -46% 100.0%
Profit after tax -38% -37% -5% -22% 0.0%

(Figure 14)

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4. Vertical Analysis Comparison of Income statements for Mc Bride and PZ Cusson

McBride vertical Analysis

Figure 2019 2018 2017 2016 2015
Revenue 100% 100% 100% 100% 100%
Cost of sales 67% 66% 64% 64% 65%
Gross profit 33% 34% 36% 36% 35%
Selling, general and admin. Expenses 8% 7% 7% 7% 7%
Other operating profit 22% 22% 24% 24% 26%
Operating profit 4% 5% 6% 5% 1%
Interest 1% 1% 3% 1% 1%
Profit before tax 3% 4% 3% 4% 0%
tax 1% 1% 1% 1% 0%
Profit after tax 1% 0% 1% 2% 0%
(Figure 15)

PZ Cusson Vertical Analysis

Figure 2019 2018 2017 2016 2015

Revenue 100% 100% 100% 100% 100%
Cost of sales 63% 65% 61% 62% 60%
Gross profit 37% 35% 38% 38% 41%
Selling, general and admin. Expenses 15% 14% 16% 16% 18%
Other operating profit 16% 13% 11% 11% 11%
Operating profit 6% 9% 11% 11% 11%
Interest 1% 1% 1% 1% 1%
Profit before tax 5% 8% 11% 10% 10%
tax 2% 2% 3% 2% 3%
Profit after tax 4% 6% 8% 8% 7%
(Figure 16)

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5. Comparison of Balance Sheet for Mc Bride and PZ Cusson

McBride Horizontal analysis of Balance Sheet

Figure 2019 2018 2017 2016 2015

Assets
Current assets
Cash and cash equivalent 23% -55% 5% 6% 0%
Current tax asset 163% - - 0%
Recievables -6% 13% 1% -21% 0%
Inventories 7% 13% 4% 13% 0%
0%
Total Current assets -4% 10% 2% 6% 0%

Non current assets

Property plant and equipment 0% -4% 3% 5% 0%
Deffered tax payment -16% 8% 29% -16% 0%
Goodwill 0% 17% 0% -1% 0%
Other intangible assets -4% 126% 68% 25% 0%
Total Assets -3% 7% 0% 145% 0%

Current liabilities
Account payables and accrued expenses -10% 4% 7% 5% 0%
Borrowings 0% 11% 30% -14% 0%
Current tax Liability 1% 26% 100% -22% 0%
Total current liabilities -7% 10% 1% 0%

Non Current Liability

Borrowings 11% 32% -27% 6% 0%
Pensions and other post employee payments 1% -27% 28% 5% 0%
Deffered income tax liability -3% -6% 5% 25% 0%
Total Non Current Liabilities 8% 8% -12% 8% 0%

Total liabilities -3% 7% 2% 3% 0%

Net Assets -5% 5% -7% 20% 0%

Equity
Issued share capital 0% 0% 0% 0% 0%
Share premium account -10% -9% -7% -6% 0%
Other reserves 13% 15% 21% 25% 0%
Accumulated loss 4% -4% 8% -192% 0%
Equity attribute to shareowners of the company -5% 6% -7% 20% 0%

Total Equity -5% 5% -7% 20% 0%

(Figure 17)

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PZ Cusson Horizontal Analysis of Balance sheet.

Figure 2019 2018 2017 2016 2015

Assets
Current assets
Cash and cash equivalent -48% -32% -14% 218% 0%
Current tax asset - - - 0%
Recievables -4% -14% 9% -2% 0%
Inventories -1% -19% 9% -8% 0%
0%
Total Current assets -13% -21% 1% 21% 0%

Non current assets

Property plant and equipment -5% -12% -22% 9% 0%
Deffered tax payment - - - 0%
Goodwill -8% -2% 14% 0% 0%
Other intangible assets 9% 693% -92% 29% 0%
Total Assets -6% -10% -4% 11% 0%

Current liabilities
Account payables and accrued expenses -2% -30% 25% -3% 0%
Borrowings -99% -15% -9% 51% 0%
Current tax Liability 30% -11% 4% -43% 0%
Total current liabilities -56% 4% 15% 0%

Non Current Liability

Borrowings 0%
Pensions and other post employee payments
-8% -29% 0% -37% 0%
Deffered income tax liability 11% 7% 27% 2% 0%
Total Non Current Liabilities 269% -1% 22% -13% 0%

Total liabilities -10% -16% 6% 12% 0%

Net Assets -3% -1% -15% 11% 0%

Equity
Issued share capital 0% 0% 0% 0% 0%
Share premium account -2% 4% 3% 8% 0%
Other reserves 0% 3% 5329% -42% 0%
Accumulated loss 1% 27% 253% -39% 0%
Equity attribute to shareowners of the -3%
company 0% -14% 11% 0%

Total Equity -3% -1% -15% 11% 0%

(Figure 18)

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McBride Vertical Analysis of Balance sheet.

Figure 2019 2018 2017 2016 2015

Assets
Current assets
Cash and cash equivalent 22% 17% 40% 36% 41%
Current tax asset 3% 1% - - 3.7
Recievables 227% 231% 214% 196% 300%
Inventories 148% 132% 123% 110% 116%

Total Current assets 402% 398% 381% 347% 392%

Non current assets

Property plant and equipment 212% 201% 219% 197% 226%
Deffered tax payment 17% 19% 19% 13% 19%
Goodwill 32% 30% 27% 25% 31%
Other intangible assets 14% 14% 7% 4% 3%
Total Assets 678% 663% 654% 606% 297%

Current liabilities
Account payables and accrued expenses 284% 299% 302% 263% 300%
Borrowings 68% 64% 61% 44% 61%
Current tax Liability 12% 11% 9% 4% 6%
Total current liabilities 369% 379% 376% 318% 379%

Non Current Liability

Borrowings 143% 122% 97% 124% 140%
Pensions and other post employee payments 48% 46% 66% 48% 55%
Deffered income tax liability 10% 9% 11% 9% 9%
Total Non Current Liabilities 208% 184% 178% 188% 210%

Total liabilities 578% 563% 554% 506% 589%

Net Assets 100% 100% 100% 100% 100%

Equity
Issued share capital 29% 27% 29% 26% 32%
Share premium account 115% 121% 140% 140% 178%
Other reserves 109% 91% 83% 64% 62%
Accumulated loss -152% -139% -153% -132% 173%
Equity attribute to shareowners of the company 100% 100% 99% 99% 99%

Total Equity 100% 100% 100% 100% 100%

(Figure 19)

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PZ Cusson Vertical Analysis of Balance sheet.

Figure 2019 2018 2017 2016 2015

Assets
Current assets
Cash and cash equivalent 12% 22% 32% 32% 11%
Current tax asset 0% - - - 3.7
Recievables 35% 35% 41% 32% 36%
Inventories 29% 29% 35% 27% 33%

Total Current assets 77% 86% 108% 91% 83%

Non current assets

Property plant and equipment 33% 34% 38% 41% 42%
Deffered tax payment 2% - - - -
Goodwill 82% 86% 87% 65% 72%
Other intangible assets 8% 7% 1% 10% 9%
Total Assets 210% 218% 240% 213% 212%

Current liabilities
Account payables and accrued expenses 38% 38% 53% 36% 41%
Borrowings 0% 54% 63% 59% 43%
Current tax Liability 7% 5% 6% 5% 9%
Total current liabilities 46% 101% 123% 101% 96%

Non Current Liability

Borrowings 45% - - - -
Pensions and other post employee payments2% 3% 4% 3% 5%
Deffered income tax liability 16% 14% 13% 9% 9%
Total Non Current Liabilities 64% 17% 17% 12% 15%

Total liabilities 110% 118% 140% 113% 112%

Net Assets 100% 100% 100% 100% 100%

Equity
Issued share capital 1% 1% 1% 1% 1%
Share premium account 120% 119% 114% 94% 96%
Other reserves 9% 8% 8% 0% 0%
Accumulated loss 19% 18% 14% 3% 6%
Equity attribute to shareowners of the94%
company 94% 93% 91% 91%

Total Equity 100% 100% 100% 100% 100%

(Figure 20)

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6. McBride PLC Year on Year Performance Comparisons.

Income Statements interpretations of McBride PLC.

Revenue growth in McBride PLC (Figure 13) has contributed from Different regions, especially
from Asia’s contribution of £21.4 Million in 2019 with 9.2% Progress express results of
promotional and sales contracts gains with key customers. (Mcbride, 2019)

The 6% growth in Cost of Sales 2019 for McBride PLC (Figure 13). Direct Raw material,
packaging and energy cost increased by further net £6.6 Million (1.9%) prior year and direct labor
increased £1.1 million due to effect of labor cost inflation. (Mcbride, 2019)

Significant growth of Distribution cost which impacted negatively on both companies Operating
profits. McBride distribution cost increased by £6.5 Million to prior year (13.3%) and so as the Pz
Cusson. This Distribution cost increased due to transport capacity issues and tight labor market for
Drivers.

Net profits increased in McBride due to growth of Sales as discussed though there is an increase in
direct and indirect costs in the year 2019.

Poor performance from PZ Cusson with decrease in Net profits due to poor performance in African
region in terms of sales with 6.4% below par to prior year revenue of African region. (Pz Cusson,
2019)

Balance Sheet.

McBride Balance sheet 2019 overall net debt increase by £6.6m due to high working capital. There
is an increase in cash and cash equivalents of 23% prior to 2018, due to disposal of PC liquids
business and £1.6m cash received from disposal of manufacturing site in Italy. There is a -6%
decrease in receivables which means the company had collected its debts.

2018 there is 55% Cash and cash equivalents decrease in McBride plc due to £10.4million paid to
acquire Danlind. The Danlind acquisition increased borrowing of 2018 to 32% for McBride under
non-current liability.

Overall the Current ratio of the McBride PLC is at a rate of 1:1 which is fairly fine the industry
concerns.

Above are major financial information and transaction occurred with regard to McBride There are several
favorable and unfavorable transactions occurred for company last few years.

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7. Future Growth Plans of McBride and Financial Review

Future strategy for McBride is Repair, Prepare and Grow. (Mcbride, 2019) McBride has been
involving in the Preparing section for a future growth.
1. Asia performance increase from break even
2. Exit from loss making Pc Liquid business
3. Reducing loss making Aerosols business into single site.
(Mcbride, 2019)

Followings are some of growing strategies McBride concerns,

(Mcbride, 2019)

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Financial Review of McBride PLC with regard to Future growth.

Above are some of examples for strategy implications in McBride PLC. Followings are some of financial
interpretations of McBride with regard to Growth strategies of above.

According to Annual report 2019 the future plan is to reach ROCE of 25% - 30% which is far
ahead than the current ROCE performance of McBride. (Figure 3)

McBride focusing on Digital Transformation as a future preparation. Digital transformation may

need more funds compared to other investments. Current ratio performance of 1:1 of McBride
may be an issue for investment and decrease in Cash and cash equivalents.

Cost management would be an issue for McBride future strategies. As discussed there is a
significant increase is direct costs and indirect costs of McBride.
Ex; Cost management plans.

ACID test ratio (figure 8) will be an issue for McBride since liquid assets are underperforming,
when implementing mentioned growth strategies liquid assets, (cash in hand) would be an added
advantage for an Organization. *noted increasing inventories. (figure 17)

Increasing revenue of McBride would be an advantage when performing above growth strategies.
(figure 13)

Concerning to current investor performance of McBride (figure 9, 10, 11, 12) it reveals fairly
positive signs for investors to invest more on McBride plc for future growth.

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8. Limitations in Ratio and trend analysis.

Ratios calculated on accounting data not according to market performance. Inflation or any real
market condition had not taken into consideration in above calculations other than Pz Cusson
benchmark.
Global events (non-financial) are not taken into consideration. The impacts of the Brexit.
There are no standard definitions for ratios. When calculating Gearing ratio there are two ways
given for the calculation.
Ignores qualitative factors of the company. Where company McBride costs may be reduced due to
the attitudes of the employees which is not taken into accounts.
Difficult to select correct base year in trend analysis.

9. Conclusion.

Overall financial performance of McBride is favorable according to findings of report. Several important
factors to be noted,
 Effective cost management would be important.

Hope I have addressed your concern, if in need of further information please be kind enough to contact
Thankyou
(Finance Manager)

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References

Dividend Yield-FTSE 100, 2020. Dividend Yield-FTSE. [Online]

Available at: https://www.dividenddata.co.uk/dividendyield.py?market=ftse100
[Accessed 21st July 2020].

McBride PLC, 2020. Mcbride. [Online]

Available at: https://www.mcbride.co.uk/
[Accessed 14th July 2020].

Mcbride, 2019. Annual Report- Mcbride, London: Lyons Bennet.

Pz Cusson, 2019. Annual Report Pz Cusson, s.l.: FSC.
Pz Cusson, 2020. Pz Cusson. [Online]
Available at: https://www.pzcussons.com/
[Accessed 14th July 2020].

SimplyWallStreet, 2020. SimplyWall. [Online]

Available at: https://simplywall.st/news/dont-buy-mcbride-plc-lonmcb-until-you-understand-its-roce/
[Accessed 7th July 2020].

*Includes all the Annual reports of both the companies from year 2015 to 2019

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Annexures.

Financial Reports of McBride 2019/18

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22 | P a g e
McBride Financial statements 2017/16

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McBride Financial Statements 2015

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Financial Statements PZ Cusson 2019/2018

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28 | P a g e
Financial Statements Pz Cusson 2017/16

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Financial Statements Pz Cusson 2015.

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Excel Workings.

McBride Plc Workings.

Ratio Analysis for Mc Bride and Pz Cusson. (Pounds £ millions)

Mcbride Ratio Analysis

Performance ratios for McBrides PLC

Return on capital employed

Year Profit before tax Shareholder equity
Ratio
and long term borrowings
2019 22 197.9 11.12%
2018 26.5 191.7 13.82%
2017 19.7 178 11.07%
2016 25.8 198.5 13.00%
2015 2.6 177.8 1.46%

Profitability Ratios

Gross profit margin

Year Sales Cost of sales Ratio
2019 721.3 480.9 33%
2018 689.8 454.4 34%
2017 705.2 452.4 36%
2016 680.9 437.1 36%
2015 704.2 460.5 35%

Operating profit ratio

Year Operating profit Sales Ratio
2019 26.6 721.3 3.69%
2018 31.8 689.8 4.61%
2017 40.3 705.2 5.71%
2016 32.9 680.9 4.83%
2015 9.7 704.2 1.38%

Net profit margin

Year Net profit Sales Ratio
2019 8.1 721.3 1.12%
2018 3.4 689.8 0.49%
2017 8.9 705.2 1.26%
2016 17 680.9 2.50%
2015 -0.7 704.2 -0.10%

Liquidity ratios

Current ratio
Ye ar Curre nt as s e ts Curre nt liabilitie s Ratio
2019 258 237.2 1.09
2018 269 256.4 1.05
2017 244.6 241.3 1.01
2016 240 219.6 1.09
2015 225.4 120.9 1.86

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ACID test ratio
Year Current assets Inventory Current liabilities Ratio
2019 258 95 237.2 0.69
2018 269 88.9 256.4 0.70
2017 244.6 78.8 241.3 0.69
2016 240 75.7 219.6 0.75
2015 225.4 66.8 120.9 1.31

Inventory turnover in Days

Year Opening inventory Closing inventoryAverage inventory Cost of sales Ratio (Days)
2019 95 88.9 91.95 480.9 70
2018 88.9 78.8 83.85 454.4 67
2017 78.8 75.7 77.25 452.4 62
2016 75.7 66.8 71 437.1 59
2015 66.8 66.6 67 460.5 53

Investor Ratios

Earnings per share

Year Profit after tax Share outstandingRatio (per share)
2019 8.1 182.9 0.04
2018 3.4 182.6 0.02
2017 8.9 182.1 0.05
2016 17 182.5 0.09
2015 -0.7
Dividend Per share in GBP
*The Ratio is given in Annual reports
Year Dividend paid Shares outstanding
Ratio
2019 5.4 182.2 0.03
2018 7.3 182.6 0.04
2017 7.2 182.1 0.04
2016 7.3 182.5 0.04
2015

Dividend Yield Ratio

Year Dividend Per Share Market Price Ratio
2019 3.3 80.4 4.10%
2018 4.3 134.37 3.20%
2017 4.3 186.95 2.30%
2016 3.6 156.52 2.30%
2015 3.4

Dividend Cover Ratio

Year Profit after tax Dividend Ratio
2019 8.1 23.7 2.93
2018 3.4 10.0 2.95
2017 8.9 27.5 3.09
2016 17 24.9 1.47
2015 -0.7

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Pz Cusson Workings.

Pz Cusson Ratio Analysis

Performance Ratios for Pz Cussons PLC

Return on capital employed

Year Profit before tax Shareholder equity and long term borrowings Ratio
2019 37 627 5.90%
2018 66.6 434 15.35%
2017 88 492.7 17.86%
2016 83.7 503.7 16.62%
2015 84 453.2 18.53%

Profitability Ratios

Gross profit margin

Year Sales Cost of sales Ratio
2019 689.4 437.5 37%
2018 739.8 477.5 35%
2017 809.2 497.4 39%
2016 821.2 510.1 38%
2015 819.1 493.3 40%
Operating profit ratio
Year Operating profit Sales Ratio
2019 43.7 689.4 6.34%
2018 64.8 739.8 8.76%
2017 90.8 809.2 11.22%
2016 89.8 821.2 10.94%
2015 89.6 819.1 10.94%

Net profit margin

Year Net profit Sales Ratio
2019 25.8 689.4 3.74%
2018 41.4 739.8 5.60%
2017 48.8 809.2 6.03%
2016 66.9 821.2 8.15%
2015 57.9 819.1 7.07%

Liquidity ratios

Current ratio
Year Current assets Current liabilities Ratio
2019 346.9 207.9 1.67
2018 399.5 470.9 0.85
2017 506 575.9 0.88
2016 500.4 553.7 0.90
2015 413 479 0.86

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ACID test ratio
Year Current assets Inventory Current liabilities
Ratio
2019 346.9 131.9 207.9 1.03
2018 399.5 132.6 470.9 0.57
2017 506 163.3 575.9 0.60
2016 500.4 150.5 553.7 0.63
2015 413 163.7 479 0.52

Inventory turnover in Days

Year Opening inventoryClosing inventory Average inventory
Cost of sales
Ratio (Days)
2019 131.9 132.6 132.25 437.5 110
2018 132.6 163.3 147.95 477.5 113
2017 163.3 150.5 156.9 497.4 115
2016 150.5 163.7 157 510.1 112
2015 163.7 162.2 163 493.3 121
Investor Ratios

Earnings per share

Year Profit after tax Share outstanding Ratio (per share)
2019 25.8 428.72 0.06
2018 41.4 428.72 0.10
2017 48.8 428.72 0.11
2016 66.9 428.72 0.16
2015 57.9 428.72 0.14

Dividend Per share Ratio

Year Dividend paid Shares outstanding Ratio
2019 8.8 428.72 0.02
2018 8.2 428.72 0.02
2017 8.1 428.72 0.02
2016 8.1 428.72 0.02
2015 8 428.72 0.02

Dividend Yield Ratio

Year Dividend Per Share Market Price Ratio
2019 8.2 200 4.10%
2018 8.2 234 3.50%
2017 8.2 341.6 2.40%
2016 8.2 356.5 2.30%
2015 3.4
Dividend Cover Ratio
Year Profit after tax Dividend Ratio
2019 25.8 16.4 1.57
2018 41.4 25.2 1.64
2017 48.8 24.6 1.98
2016 66.9 31.55 2.12
2015 57.9 25.7 2.25

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