ACFI5020 Accounting for Managers Assignment.

ACFI5020 Accounting for Managers Assignment:

As you will recall at the beginning of the course, we discussed the important role that the capital market plays in matching investors with companies. Investors are attracted to companies that are able to generate healthy returns that are commensurate with the risks that the investment entails. Recently, we have witnessed much coverage relating to a much loved brand of the UK high street, Thomas Cook. After a prolific trading career of over 170 years, Thomas Cook finally went into administration in September 2019.

In the attached file you can see what the trajectory of their share-prices looked like.

The fortunes of Thomas Cook have been suffering for some time now but there had been signs of recovery but these signs were short-lived and did not gain the momentum that was required to turn around this ailing company.

Your task will be to take a closer look at this company and see if the ultimate demise could have been predicted.

Task One -

Using the Annual Report and Accounts of Thomas Cook for the period 2015, 2016, 2017 and 2018, you are required to evaluate the performance of the company.

You are required to:

(a) Evaluate the performance of Thomas Cook in the following areas, using ratio analysis:

- Profitability

- Liquidity/Solvency

- Working capital efficiency

- Long term financial structure

- Investors` perspective

In addition you could also consider the performance of Thomas Cook in comparison with its peer group of competitors - for example, other travel agents in the industry.

You should summarise your findings and make particular reference to the interests of the different stakeholders of the company.

When undertaking any calculations use the `Total` figures from the financial statements.