Write a report on Dairy Crest Group plc.

Please use the following guidelines:
The questions should be answered on the case study of the Dairy Crest Group plc. that i will upload shortly after this document, please contact me if anything is unclear.
• Your report should not exceed 1,500 words (excluding tables and calculations)
• Your report should be word-processed and presented in a professional manner
• The font used should be Times New Roman, Size 12, Line Spacing 1.5

Question 1:
What is (are) the principal activity(ies) of this business?
2 marks

Question 2:
Comment on the outcome of the auditor’s report for Dairy Crest Group plc. Briefly discuss the importance the auditor’s report with respect to financial information.
4 marks

Question 3:
Compute the following ratios, using the table provided below as a template:
32 marks
Profitability
• Return on equity (ROE)
• Gross profit margin
• Net profit margin

Liquidity
• Current ratio

Asset Management
• Inventory (stock) turnover period
• Trade payables’ (creditors’) turnover period

Other
• Gearing ratio
• Price earnings ratio

Ratio Expression 2014 2013 2014
result 2013
Result Industry
Average
Eg Trade receivables period 39 days 26 days –
ROE
19%
Gross profit margin
10%
Net profit margin
3%
Current ratio
1.70
Inventory turnover period
50 days
Payables’ turnover period
20 days
Gearing ratio
4%
P/E ratio
9.0 x

Question 4
Calculate the yearly percentage change in the following items stating, in each case, whether the change is a rise or fall:
12 Marks
• Sales
• Operating Profit
• Share Price

Question 5
Comment and reflect upon the ratios and percentage changes in items computed in your answers to questions 3 and 4.
30 marks
Question 6
Using the DuPont analysis technique, evaluate and comment on any changes in profitability (ROE) from 2013 to 2014. In particular, use the DuPont method to assess which aspects of the company’s performance have played a key role on the change in its profitability (if any).