Thursday, October 24, 2019
COMMENT | ||||||
All the performance ratios are in decline and are poor . The improvement in the utilistion of the asset | ||||||
base prevented the return on operating assets from declining further in 2019. | ||||||
The company converts 6% of its revenues into funds available for investment. As can be seen, this is | ||||||
due to its operating expenses consuming 89 % of its sales revenue, with financial charges consiming a | ||||||
further 5%, partly because of the company’s generous dividend policy. | ||||||
Working capital ratios are almost constant and satisfactory. The receivable days have to be | ||||||
interpreted with caution as sales are paid for with a mixture of cash and credit cards. | ||||||
Shareholder performance is poor and the dividends are not covered. The debt ratio is constant and the | ||||||
interest cover is satisfactory. | ||||||
In October 2019, Thomas Cook Management attended before a selection committee in Parliament. The | ||||||
view expressed by the committee was that exceptional item were not, in fact exceptional; they | ||||||
occurred every year. For this reason theM &S profit figures used are after charging the adjustment | ||||||
items shown in the income statements. |
Read other Cashflows (2)Current News (9)