Measuring performance 评估绩效
PLC: public limited company
Earnings per share
Dividend per share
what information is used to measure the performance of a company?
Where you can find this information?
the company is committed to a performance management culture
performance appraisal system
track performance of the company
standardized benchmarks to measure the performance of the company
the company’s annual report
the company’s data put into charts and graphs
key performance indications include: profits, turnover, share price, sales volume, dividend, etc.
shares peak at
the price falls/goes down
go into steady decline
share price is marginally up
share are up slightly by 1.3 pence
Speaking: which company has the best results? Which has the worst?
The company with the best results is C. Company B made steady progress only. Companies A and D both had disappointing years.
For D, trading profit fell by 7%; however, as the company was able to spend ￡4.8 on an acquisition, we assume profits were still reasonable. On the other hand, A made losses that were only almost balanced by gains from cost savings. Therefore, A seems to have the worst results.
Work in pairs. Your company has a large cash surplus and wants to invest in shares. Loot at the information about Ramsden Breweries plc and Bute Chemicals plc. Which company would you invest in?
factors to consider when making investment options
yield the desired level of profits
with limited export performance
smaller scale industry adds to the flexibility
an industry with clear growth potential, particularly in export markets
the restructuring programme would deliver the company’s performance improvement
the consolidation strategy increase its investment and bring in greater operating margins.
Write a 120-140 word report comparing the two companies and recommending the most suitable investment. Before you write, think carefully about the following.
How many parts will the report have?
What heading will each part have?
What information will each part contain?
Ramsden Breweries and Bute Chemicals: investment potential.
This report aims to assess which company, either Ramsden Breweries or Bute Chemicals, this company should invest in.
The company had mixed results last year, although turnover increased by approximately 25%, net profit rose by less than 4%, however, restructuring may be to eliminate these inefficiencies and expected growth in the drinks industry suggests opportunities for increased profits.
Results were disappointed, with turnover and profit both falling slightly. Nevertheless, the company managed to increase its dividend to shareholders. The rumoured merger seems likely to push up the share price considerably.
Despite the merger rumours, any investment in Bute Chemicals would involve a risk. Ramsden, on the other hand, despite its present inefficiency, is still profitable and has definite potentials for further growth.
We would recommend investment in Ramsden Breweries.