Introduction
Travis Perkins plc operates as a merchant of builders and home improvement retailer in the UK. The company provides various different types of building material employed in repair, improvement, and maintenance projects along with the material for new residential and commercial construction projects. Travis Perkins and Benchmarx are two brands under which it is operating. It serves national housebuilders along with individual businesses. The business equally well supplies joinery and kitchen products to local authorities, house builders, and specialist joiners. Contracts division of the company provides civils, drainage, and heavy building materials. The consumer side of the business provides domestic decorative and building material …show more content…
In case of Travis Perkins, it can be seen that the company has earned net margin of 0.21%, whereas, the same was 2.83% and 4.62%, in 2015 and 2014, respectively. Industry average is 3.54%. Similarly in case of ROA, the company has made 0.26% in 2016, whereas the same was higher in previous years. Overall the industry is performing better than Travis Perkins doing, and the company is continuously losing its profitability. Hence negative trend is observed in the profitability (Travis Perkins, …show more content…
The capital structure is observed to have added long-term liabilities. Currently, the capital structure is showing that Travis Perkins is operating with higher amount of debt on balance sheet as compared to its industry average of 10% for debt to equity. The increase in capital structure is primarily due to an increase in the total non-current liabilities, amounting to £285 million, whereas, equity is observed to drop by £142 million. The increase in liabilities is due to increase in capital leases along with pensions & other benefits, whereas, the drop in equity is primarily because of drop in retained earnings. So, overall there is a negative trend in the capital structure in a way that company is adding to its liabilities, and simultaneously, shareholders equity is decreasing which is further impacting the ratio (Travis Perkins,
Travis Perkins plc operates as a merchant of builders and home improvement retailer in the UK. The company provides various different types of building material employed in repair, improvement, and maintenance projects along with the material for new residential and commercial construction projects. Travis Perkins and Benchmarx are two brands under which it is operating. It serves national housebuilders along with individual businesses. The business equally well supplies joinery and kitchen products to local authorities, house builders, and specialist joiners. Contracts division of the company provides civils, drainage, and heavy building materials. The consumer side of the business provides domestic decorative and building material …show more content…
In case of Travis Perkins, it can be seen that the company has earned net margin of 0.21%, whereas, the same was 2.83% and 4.62%, in 2015 and 2014, respectively. Industry average is 3.54%. Similarly in case of ROA, the company has made 0.26% in 2016, whereas the same was higher in previous years. Overall the industry is performing better than Travis Perkins doing, and the company is continuously losing its profitability. Hence negative trend is observed in the profitability (Travis Perkins, …show more content…
The capital structure is observed to have added long-term liabilities. Currently, the capital structure is showing that Travis Perkins is operating with higher amount of debt on balance sheet as compared to its industry average of 10% for debt to equity. The increase in capital structure is primarily due to an increase in the total non-current liabilities, amounting to £285 million, whereas, equity is observed to drop by £142 million. The increase in liabilities is due to increase in capital leases along with pensions & other benefits, whereas, the drop in equity is primarily because of drop in retained earnings. So, overall there is a negative trend in the capital structure in a way that company is adding to its liabilities, and simultaneously, shareholders equity is decreasing which is further impacting the ratio (Travis Perkins,