Ted Baker Advertisement (Hofman, Graham and Apelqvist, 2013)

Financial
Analysis Report
January 2020

Managing Finance MSc Business Management

UMAD47-15-M 2019-2020
The University of the West
of England

Word Count - 2837

TABLE OF CONTENT

EXECUTIVE SUMMARY 4
1. INTRODUCTION 5
2. BACKGROUND 6

1.1 TED BAKER 6

1.2 BRITISH LUXURY SECTOR 6
1.3 GLOBAL LUXURY SECTOR 6

3. OBJECTIVES 7
4. METHODOLOGY 8

4.1 DATA COLLECTION AND CALCULATIONS 8

5. RATIO ANALYSIS 9

5.1 PROFITABILITY RATIOS 9

5.2 EFFICIENCY RATIOS 10
5.3 LIQUIDITY RATIOS 11
5.4 SOLVENCY RATIOS 12
5.5 INVESTMENT RATIOS 13
5.6 ALTMAN’S Z SCORE 14

6. FINDINGS 14
7. CONCLUSION 16
8. REFLECTIONS 17
9. REFERENCES 18
APPENDIX A 20

A.1 NOTES 20
A.2 TED BAKER FINANCIAL REPORT 2016-2017 21
A.3 TED BAKER FINANCIAL REPORT 2017-2018 25
A.4 TED BAKER FINANCIAL REPORT 2018-2019 28

APPENDIX B - TED BAKER COLLECTED DATA AND CALCULATIONS 32

APPENDIX C - BURBERRY COLLECTED DATA AND CALCULATIONS 40
APPENDIX D - MULBERRY COLLECTED DATA AND CALCULATIONS 48
APPENDIX E - COMPARISON OF RATIOS AND DIAGRAMS 56

EXECUTIVE SUMMARY
Found in 1988 in Glasgow, as a single shirt
specialist store, Ted Baker Plc is now a
Global Lifestyle Luxury Brand. It is well
known for high-quality, quirky apparel and
accessories (Ted Baker). British Luxury
to
analyse Ted Baker’s financial performance
over 2016-2018 to identify its strengths and
weaknesses. Profitability, efficiency, liquidity,
solvency and investment ratios were
calculated using data from financial reports
and compared with two
competitive organisations – Burberry and
Mulberry. It is important to note that financial
ratios are only as good as the data provided
on financial statements.
4
Numerous regulatory bodies are monitoring
the quality of the information provided.
However, there is a certain margin leaving
Financial Statements subject to optimistic or
pessimistic reporting.
The study had identified that despite reported
revenue growth and an overall optimistic
outlook (Ted Baker, 2019), Ted Baker
experienced a decline in profitability and
efficiency (Figure 1). The significant decline
happened in 2017; it could have been
affected by Brexit and consumer uncertainty
(Ted Baker, 2016, 2019). The second finding
indicates poor liquidity
(Figure 2). Much capital is held in inventory,
and it takes longer to sell it. Ted Baker should
identify and eliminate supply chain issues.
Even though liquidity is poor, long-term debt
and equity ratio is healthy. The third finding
showed that Ted Baker pays-out more
dividend than competitors (Figure 3).
Sometimes, the organisation pays out more to
indicate higher future profits; however, this
reduces funds available to invest into
organisation for long-term improvements
(DeFusco, Dunham and Geppert, 2014). Ted
Baker should not increase dividends any
further. Altman’s Z score analyses
demonstrated that overall, Ted Baker is in a
strong position and has a minimal risk of
bankruptcy.
 5

1. INTRODUCTION
 6

2. BACKGROUND

1.1 Ted Baker

(Walpole, 2019).

1.3 Global Luxury Sector

1.2 British Luxury Sector

(Deloitte LLP, 2018).


3. OBJECTIVES
Moyer, McGuigan
and Rao, 2007). Ted Baker performance
will be analysed for three years and
7
compared with two British Luxury
lifestyle brands which also are operating
globally: Burberry and Mulberry.
Deloitte
LLP, 2018). Both competing brands
focus on sustainable, ethical business
and unique, creative product designs.
While Burberry and Mulberry may have
similar prices ranges, one has been
established for over 164 years, while
the other one just 17 years longer than
Ted Baker (Burberry; Mulberry); Figures
5,6 and 7 represent product price
comparison.

4. METHODOLOGY
There are several techniques to analyse
organisations’ performance, such as
ratio, common-size and regression
analysis. Financial ratio analysis will be
used to identify Ted Baker’s strength
and weaknesses in the business area.
4.1 Data collection and calculations
(Moyer,
8
McGuigan and Rao, 2007). Ratio
analysis is not an alternative to impartial
thinking and judgment. It is important
to note that ratios are changing over
time; external factors like seasonality or
disasters can affect comparison;
company’s strategic plans to invest may
show lower profitability than next
period compared (Gill, 1992).
Data for analysis has been collected
from latest Annual Reports (Ted Baker,
2017, 2018, 2019; Burberry, 2017,
2018, 2019; Mulberry, 2017, 2018,
2019); share price history collected
from Yahoo Finance (Yahoo Finance,
2020c, 2020a, 2020b). Ratios for Ted
Baker and two competitor
organisations were calculated using
Microsoft Excel and the same methods
to provide consistency and accuracy.
Microsoft Word and Adobe Acrobat
pro DC were used to compile the
report. See Appendix A for ted Baker
financial statements, Appendices B, C,
D and E for collected data and
calculations.
 9

5. RATIO ANALYSIS

5.1 Profitability Ratios

Ready Ratios).
 10

5.2 Efficiency Ratios

(My
Accounting Course).
 11

5.3 Liquidity Ratios

oyer, McGuigan and Rao,

2007).

Ted Baker’s current ratio (Figure 12) has

business
generates cash daily.
 15

7. RECOMMENDATIONS
 16

7. CONCLUSION

This investigation aimed to analyse Ted

Baker’s financial strengths and
weaknesses. Profitability, efficiency,
liquidity, solvency and investment ratios
were calculated using data from
financial reports and compared with
two competitive organisations –

and
Geppert, 2014). Ted Baker should not
increase dividends any further and
reinvest remaining profits back into the
organisation. Altman’s Z score analyses
demonstrated that overall, Ted Baker is
in a strong position and has a minimal
risk of bankruptcy.

9. REFERENCES
Burberry (2017) Burberry Annual Report 2016-
2017 [online]. Available from:
https://www.burberryplc.com/en/investo
rs/results-reports.html [Accessed 10
January 2020].
Burberry (2018) Burberry Annual report 2017-
2018 [online]. Available from:
https://www.burberryplc.com/en/investo
rs/results-reports.html [Accessed 10
January 2020].
Burberry (2019) Burberry Annual report 2018-
2019 [online]. Available from:
https://www.burberryplc.com/en/investo
rs/results-reports.html [Accessed 10
January 2020].
Burberry (no date) Embossed Monogram Motif
Leather Tote. Available from:
https://uk.burberry.com/embossed-
monogram-motif-leather-tote-
p80196261 [Accessed 10 January 2020].
Davis, T. (1993) Effective supply chain
management. Sloan Management
Review. 34 (4), pp. 35–46.
DeFusco, R.A., Dunham, L.M. and Geppert, J.
(2014) An empirical analysis of the
dynamic relation among investment,
earnings and dividends. Managerial
Finance. 40 (2), pp. 118–136.
doi:10.1108/MF-04-2013-0090.
Deloitte LLP (2018) Global Powers of Luxury
Goods 2018 Shaping the future of the
luxury industry.
Gill, J.O. (1992) Practical financial analysis. US:
Crisp Publications Inc.
Hofman, S., Graham, I. and Apelqvist, L. (2013)
Tastefully Ted [photograph]. Available
from:
https://www.itsnicethat.com/articles/sa
m-hofman-tastefully-ted [Accessed 10
January 2020].
18
Investopedia (no date) Financial Ratios:
Compare and Analyze Performance.
Available from:
https://www.investopedia.com/financial-
ratios-4689817 [Accessed 10 January
2020].
Moyer, R.C., McGuigan, J.R. and Rao, R.P.
(2007) Fundamentals of Contemporary
Financial Management. 2nd edition.
Canada: Thomson.
Mulberry (no date) Bayswater Tote. Available
from:
https://www.mulberry.com/gb/shop/wo
men/bags/totes/bayswater-tote-black-
khaki-small-tartan-check [Accessed 8
January 2020].
Mulberry (2017) Mulberry Annual Report
2016-2017 [online]. Available from:
https://www.mulberry.com/gb/investor-
relations/reports [Accessed 8 January
2020].
Mulberry (2018) Mulberry Annual Report
2017-2018 [online]. Available from:
https://www.mulberry.com/gb/investor-
relations/reports [Accessed 9 January
2020].
Mulberry (2019) Mulberry Annual report 2018-
2019 [online]. Available from:
https://www.mulberry.com/gb/investor-
relations/reports [Accessed 6 January
2020].
My Accounting Course (no date) Financial
Ratios | Analysis | Formulas | Examples
online]. Available from:
www.myaccountingcourse.com/accounti
ng-dictionary [Accessed 8 January 2019].

Ready Ratios (no date) Apparel And Other
Finished Products Made From Fabrics And
Similar Materials: industry financial ratios
benchmarking. Available from:
https://www.readyratios.com/sec/industr
y/23/ [Accessed 12 January 2020].
Ted Baker (no date) About Ted | Ted Baker UK.
Available from:
https://www.tedbaker.com/uk/about-
ted?int_cmpid=_Footer_all-about
[Accessed 8 January 2020a].
Ted Baker (no date) SPIRITZ Leather tote bag.
Available from:
https://www.tedbaker.com/uk/Womens/
Accessories/Bags/SPIRITZ-Leather-tote-
bag-Grey/p/156188-GREY [Accessed 8
January 2020b].
Ted Baker (2017) Ted Baker Annual Report
2016-2017 [online]. Available from:
http://www.tedbakerplc.com/investor-
relations/results-and-reports/2019
Ted Baker (2018) Ted Baker Annual Report
2017 -2018 [online]. Available from:
http://www.tedbakerplc.com/investor-
relations/results-and-reports/2019
Ted Baker (2019) Ted Baker Annual Report
2018 -2019 [online]. Available from:
http://www.tedbakerplc.com/investor-
relations/results-and-reports/2019
Tersine, R.J. and Wacker, J.G. (2000)
19
Customer‐aligned inventory strategies:
agility maxims. International Journal of
Agile Management Systems. 2 (2), pp.
114–120.
doi:10.1108/14654650010337122.
Walpole (2019) Economic contribution to the
UK and policy recommendations [online].
Available from: www.thewalpole.co.uk
Walsh, C. (2006) Key Management Ratios. 4th
edition. Harlow: Pearson Education
Limited.
Yahoo Finance (2020a) BURBERRY GROUP PLC
(BRBY.L) stock price, quote, history &
news – Yahoo Finance. Available from:
https://uk.finance.yahoo.com/quote/BRB
Y.L?ltr=1 [Accessed 11 January 2020].
Yahoo Finance (2020b) MULBERRY GROUP PLC
(MUL.L) - stock price, quote, history &
news – Yahoo Finance. Available from:
https://uk.finance.yahoo.com/quote/MU
L.L/history?period1=1490745600&period
2=1490918400&interval=1d&filter=histor
y&frequency=1d [Accessed 11 January
2020].
Yahoo Finance (2020c) TED BAKER PLC (TED.L)
stock price, quote, history & news – Yahoo
Finance. Available from:
https://uk.finance.yahoo.com/quote/TED.
L/ [Accessed 11 January 2020]
 20

APPENDIX A

A.1 Notes

Ted Baker reports have been published (a) 2019 January 26t for 2018 calendar year; (b)
2018 January 27th for 2017 calendar year; (c) 2017 January 29th for 2016 calendar year.
Burberry and Mulberry had published their reports (a) 2019 March 30th for 2018-2019
financial year; (b) 2018 March 31st 2017-2018 financial year; (c) 2017 March 31st for
2016-2017 financial year. For comparison and calculations, each period has been
marked as follows: (a) 2018, (b) 2017, (c) 2016.

Year for Ted Baker Annual Burberry Annual Mulberry Annual

calculations and Report publishing Report publishing Report publishing
comparison date date date
2018 2019 January 26th 2019 March 30th 2019 March 30th
2017 2018 January 27th 2018 March 31st 2018 March 31st
2016 2017 January 29th 2017 March 31st 2017 March 31st
A.2 Ted Baker Financial report 2016-2017
21

FINANCIAL STATEMENTS

GROUP AND COMPANY PRIMARY FINANCIAL STATEMENTS

GROUP INCOME STATEMENT

FOR THE 52 WEEKS ENDED 28 JANUARY 2017 NOTE 52 WEEKS ENDED 52 WEEKS ENDED
28 JANUARY 2017 30 JANUARY 2016

£’000 {)))
Revenue 2 530,986 456,169
Cost of sales (207,257) (183,147)
GROSS PROFIT 323,729 273,022

Distribution costs (208,221) (169,762)

Administrative expenses (70,103) (57,435)
Administrative expenses before exceptional costs (65,590) (57,435)
Exceptional costs 3 (4,513) -
Licence income 18,237 14,384
Other operating expense (1,145) !1-)"
OPERATING PROFIT 62,497 59,369

Finance income 4 1,597 531

Finance expense 4 (3,373) (1,931)
Share of profit of jointly controlled entity, net of tax 12 550 695
PROFIT BEFORE TAX 3 61,271 58,664

PROFIT BEFORE TAX AND EXCEPTIONAL COSTS 65,784 58,664

Exceptional costs (4,513) -
Income tax expense 6 (14,703) (14,429)
PROFIT FOR THE PERIOD 46,568 44,235

EARNINGS PER SHARE 9

Basic 105.7p *))'/i
Diluted 104.5p 22',i

GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE 52 WEEKS ENDED 28 JANUARY 2017 52 WEEKS ENDED 52 WEEKS ENDED
28 JANUARY 2017 30 JANUARY 2016

£‘000 £‘000
PROFIT FOR THE PERIOD 46,568 44,235
OTHER COMPREHENSIVE INCOME
ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT
Net effective portion of changes in fair value of cash flow hedges 10,521 951
Net change in fair value of cash flow hedges transferred to profit or loss (5,435) (669)
Exchange differences on translation of foreign operations net of tax 5,580 2,599
OTHER COMPREHENSIVE INCOME FOR THE PERIOD 10,666 2,881

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 57,234 47,116

78
 22

FINANCIAL STATEMENTS

GROUP AND COMPANY BALANCE SHEET

AT 28 JANUARY 2017 NOTE GROUP GROUP COMPANY COMPANY
28 JANUARY 30 JANUARY 28 JANUARY 30 JANUARY
2017 2016 2017 2016
£’000 £’000 £’000 £’000
Intangible assets 10 24,445 17,247 - -
Property, plant and equipment 11 144,354 123,397 - -
Investments in subsidiary 12 - - 23,102 21,482
Investment in equity accounted investee 12 1,897 1,641 - -
Deferred tax assets 13 4,446 6,313 - -
Prepayments 401 414 - -
NON-CURRENT ASSETS 175,543 149,012 23,102 21,482
Inventories 14 158,500 125,323 - -
Trade and other receivables 15 59,251 49,303 51,932 47,486
Amount due from equity accounted investee 12 653 563 - -
Derivative financial assets 16 8,974 2,850 - -
Cash and cash equivalents 17 21,401 13,295 2,238 615
CURRENT ASSETS 248,779 191,334 54,170 48,101
Trade and other payables 18 (80,995) (61,088) (23) (10)
Bank overdraft 17 (58,074) (37,869) - -
Term loan 23 (6,000) (1,500) - -
Income tax payable (10,327) (8,382) - -
Provisions for liabilities and charges 19 (915) - - -
Derivative financial liabilities 16 (616) (352) - -
CURRENT LIABILITIES (156,927) (109,191) (23) (10)
Deferred tax liability 13 (2,349) (56) - -
Provisions for liabilities and charges 19 (2,002) - - -
Term loan 23 (52,500) (58,500) - -
NON-CURRENT LIABILITIES (56,851) (58,556) - -
NET ASSETS 210,544 172,599 77,249 69,573

EQUITY
Share capital 20 2,208 2,199 2,208 2,199
Share premium 20 9,935 9,617 9,935 9,617
Other reserves 20 6,736 1,650 20,680 19,060
Translation reserve 20 7,891 2,311 - -
Retained earnings 20 183,774 156,822 44,426 38,697
TOTAL EQUITY ATTRIBUTABLE TO EQUITY
SHAREHOLDERS OF THE PARENT COMPANY 210,544 172,599 77,249 69,573
TOTAL EQUITY 210,544 172,599 77,249 69,573

These financial statements were approved by the Board of Directors on 23 March 2017 and were signed on its behalf by:

Lindsay Page
Director
Company number: 03393836

82
 23

FINANCIAL STATEMENTS

GROUP AND COMPANY CASH FLOW STATEMENT

FOR THE 52 WEEKS ENDED 28 JANUARY 2017 GROUP GROUP COMPANY COMPANY
52 WEEKS 52 WEEKS 52 WEEKS 52 WEEKS
ENDED ENDED ENDED ENDED
28 JANUARY 30 JANUARY 28 JANUARY 30 JANUARY
2017 2016 2017 2016
£’000 £’000 £’000 £’000
CASH GENERATED FROM OPERATIONS
Profit for the period 46,568 44,235 27,246 24,016
Adjusted for:
Income tax expense 14,703 14,429 - -
Depreciation and amortisation 20,966 14,929 -
Impairment - 188 -
Loss on disposal of property, plant and equipment 416 58 - -
Share-based payments 1,839 2,019 219 247
Net finance expense 1,776 1,400 - -
Net change in derivative financial assets and liabilities carried at fair value
through profit or loss 677 840 - -
Share of profit in joint venture (550) (695) - -
Decrease in non-current prepayments 59 52 - -
Increase in inventory (27,128) (12,142) - -
Increase in trade and other receivables (16,335) (10,805) (4,446) (5,977)
Increase in trade and other payables 20,392 1,566 13 -
Increase in provisions for liabilities and charges 2,917 - - -
Interest paid (2,886) (1,376) - -
Income taxes paid (10,644) (13,127) - -
NET CASH GENERATED FROM OPERATING ACTIVITIES 52,770 41,571 23,032 18,286
CASH FLOW FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangibles (43,753) (89,535) - -
Proceeds from sale of property, plant and equipment 93 - - -
Investment in subsidiaries - - - -
Dividends received from joint venture 294 344 - -
Interest received 15 - - -
NET CASH FROM INVESTING ACTIVITIES (43,351) (89,191) - -
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from term loan - 60,000 - -
Repayment of term loan (1,500) - - -
Dividends paid (21,736) (18,543) (21,736) (18,543)
Proceeds from issue of shares 327 289 327 289
NET CASH FROM FINANCING ACTIVITIES (22,909) 41,746 (21,409) (18,254)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (13,490) (5,874) 1,623 32
Net cash and cash equivalents at the beginning of the period (24,574) (18,824) 615 583
Exchange rate movement 1,391 124 - -
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (36,673) (24,574) 2,238 615
Cash and cash equivalents at the end of the period 21,401 13,295 2,238 615
Bank overdraft at the end of the period (58,074) (37,869) - -
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (36,673) (24,574) 2,238 615

83 Ted Baker Plc Annual Report and Accounts 2016/17

 24

FINANCIAL STATEMENTS

7. PROFIT ATTRIBUTABLE TO TED BAKER PLC

The profit after tax for the 52 weeks ended 28 January 2017 of Ted Baker Plc, the parent company was £27,246,000
(2016: £24,016,000). The Directors have approved the income statement for the parent company.

8. DIVIDENDS PER SHARE

52 WEEKS ENDED 52 WEEKS ENDED
28 JANUARY 30 JANUARY
2017 2016
£’000 £’000
Final dividend paid for prior period of 34.6p per ordinary share (2016: 29.0p) 15,215 12,739
Interim dividend paid of 14.8p per ordinary share (2016: 13.2p) 6,521 5,804
21,736 18,543

A final dividend in respect of 2017 of 38.8p per share, amounting to a dividend payable of £17,137,466 is to be
proposed at the Annual General Meeting on 13 June 2017.

9. EARNINGS PER SHARE

52 WEEKS ENDED 52 WEEKS ENDED
28 JANUARY 30 JANUARY
2017 2016
Number of shares: No. No.
Weighted number of ordinary shares outstanding 44,034,459 43,950,203
Effect of dilutive options 516,310 612,138
WEIGHTED NUMBER OF ORDINARY SHARES OUTSTANDING – DILUTED 44,550,769 44,562,341

EARNINGS: £’000 £’000

Profit for the period – basic and diluted 46,568 44,235
Profit for the period – adjusted* 50,178 44,235

Basic earnings per share 105.7p 100.6p

Adjusted earnings per share* 114.0p 100.6p
Diluted earnings per share 104.5p 99.3p
Adjusted diluted earnings per share 112.6p 99.3p

Diluted earnings per share and adjusted diluted earnings per share have been calculated using additional ordinary shares of 5p each available under
the Ted Baker Sharesave Scheme and the Ted Baker Plc Long-Term Incentive Plan 2013.
There were no share related events after the balance sheet date that may affect earnings per share.
* Adjusted profit for the period and adjusted earnings per share are shown before the net exceptional costs (net of tax) of £3.6m (2016: £nil).

100
 A.3 Ted Baker Financial report 2017-2018
FINANCIAL STATEMENTS FINANCIAL STATEMENTS
25
GROUP AND COMPANY PRIMARY FINANCIAL STATEMENTS GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED
GROUP INCOME STATEMENT 27 JANUARY 2018 27 JANUARY 28 JANUARY
2018 2017
FOR THE 52 WEEKS ENDED NOTE 52 WEEKS ENDED 52 WEEKS ENDED
27 JANUARY 2018 27 JANUARY 28 JANUARY æã æã
2018 2017 PROFIT FOR THE PERIOD 52,744 46,568
æâ æâ OTHER COMPREHENSIVE INCOME/(EXPENSE)
5HYHQXH    ITEMS THAT MAY BE RECLASSIFIED TO THE INCOME STATEMENT

&RVWRIVDOHV   1HWHσHFWLYHSRUWLRQRIFKDQJHVLQIDLUYDOXHRIFDVKñRZKHGJHV  

GROSS PROFIT 360,805 323,729 1HWFKDQJHLQIDLUYDOXHRIFDVKñRZKHGJHVWUDQVIHUUHGWRSURðWRUORVV  

([FKDQJHGLσHUHQFHVRQWUDQVODWLRQRIIRUHLJQRSHUDWLRQVQHWRIWD[  

'LVWULEXWLRQFRVWV   OTHER COMPREHENSIVE (EXPENSE)/INCOME FOR THE PERIOD (17,664) 10,666

$GPLQLVWUDWLYHH[SHQVHV  

$GPLQLVWUDWLYHH[SHQVHVEHIRUHH[FHSWLRQDOLWHPV   TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 35,080 57,234

([FHSWLRQDOLWHPV   

/LFHQFHLQFRPH   GROUP STATEMENT OF CHANGES IN EQUITY

2WKHURSHUDWLQJLQFRPHH[SHQVH   FOR THE 52 WEEKS ENDED SHARE SHARE CASH FLOW TRANSLATION RETAINED TOTAL EQUITY
27 JANUARY 2018 CAPITAL PREMIUM HEDGING RESERVE EARNINGS ATTRIBUTABLE
OPERATING PROFIT 70,727 62,497 RESERVE TO EQUITY
SHAREHOLDERS
OF THE PARENT
)LQDQFHLQFRPH   
æâ æâ æâ æâ æâ æâ
)LQDQFHH[SHQVH   
BALANCE AT 28 JANUARY 2017 2,208 9,935 6,736 7,891 183,774 210,544
6KDUHRISURðWRIMRLQWO\FRQWUROOHGHQWLW\QHWRIWD[   
COMPREHENSIVE INCOME
PROFIT BEFORE TAX  68,789 61,271 FOR THE PERIOD

3URðWIRUWKHSHULRG      

PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS 73,465 65,784 ([FKDQJHGLσHUHQFHVRQWUDQVODWLRQ

RIIRUHLJQRSHUDWLRQV      
([FHSWLRQDOLWHPV  
&XUUHQWWD[RQIRUHLJQFXUUHQF\WUDQVODWLRQ      
,QFRPHWD[H[SHQVH   
(σHFWLYHSRUWLRQRIFKDQJHVLQIDLUYDOXHRI
,QFRPHWD[H[SHQVHEHIRUHH[FHSWLRQDOLWHPV   FDVKñRZKHGJHV      
,QFRPHWD[UHODWLQJWRH[FHSWLRQDOLWHPV   1HWFKDQJHLQIDLUYDOXHRIFDVKñRZKHGJHV
PROFIT FOR THE PERIOD 52,744 46,568 WUDQVIHUUHGWRSURðWRUORVV      

'HIHUUHGWD[DVVRFLDWHGZLWKPRYHPHQWLQ
KHGJLQJUHVHUYH      
EARNINGS PER SHARE
TOTAL COMPREHENSIVE INCOME
%DVLF  S S FOR THE PERIOD - - (9,738) (7,926) 52,744 35,080

'LOXWHG  S S TRANSACTIONS WITH OWNERS

RECORDED DIRECTLY IN EQUITY

,QFUHDVHLQLVVXHGVKDUHFDSLWDO      

6KDUHEDVHGSD\PHQWFKDUJHV      

0RYHPHQWRQFXUUHQWDQGGHIHUUHGWD[RQ
VKDUHEDVHGSD\PHQWV      

'LYLGHQGVSDLG      

TOTAL TRANSACTIONS WITH OWNERS 16 552 - - (22,142) (21,574)

BALANCE AT 27 JANUARY 2018 2,224 10,487 (3,002) (35) 214,376 224,050

82 Ted Baker Plc Annual Report and Accounts 2017/18 83

FINANCIAL STATEMENTS FINANCIAL STATEMENTS
26
GROUP AND COMPANY BALANCE SHEET GROUP AND COMPANY CASH FLOW STATEMENT
AT 27 JANUARY 2018 NOTE GROUP GROUP COMPANY COMPANY FOR THE 52 WEEKS ENDED GROUP GROUP COMPANY COMPANY
27 JANUARY 28 JANUARY 27 JANUARY 28 JANUARY 27 JANUARY 2018 52 WEEKS 52 WEEKS 52 WEEKS 52 WEEKS
2018 2017 2018 2017 ENDED ENDED ENDED ENDED
27 JANUARY 28 JANUARY 27 JANUARY 28 JANUARY
æâ æâ æâ æâ 2018 2017 2018 2017
,QWDQJLEOHDVVHWV      æâ æâ æâ æâ
3URSHUW\SODQWDQGHTXLSPHQW      CASH GENERATED FROM OPERATIONS
,QYHVWPHQWLQVXEVLGLDU\      3URðWIRUWKHSHULRG    
,QYHVWPHQWLQHTXLW\DFFRXQWHGLQYHVWHH      $GMXVWHGIRU
'HIHUUHGWD[DVVHWV      ,QFRPHWD[H[SHQVH    
3UHSD\PHQWV     'HSUHFLDWLRQDQGDPRUWLVDWLRQ    
NON-CURRENT ASSETS 179,808 175,543 24,793 23,102 ,PSDLUPHQWV    
,QYHQWRULHV      /RVVRQGLVSRVDORISURSHUW\SODQWDQGHTXLSPHQW    
7UDGHDQGRWKHUUHFHLYDEOHV      6KDUHEDVHGSD\PHQWV    
$PRXQWGXHIURPHTXLW\DFFRXQWHGLQYHVWHH      1HWðQDQFHH[SHQVH    
'HULYDWLYHðQDQFLDODVVHWV      1HWFKDQJHLQGHULYDWLYHðQDQFLDODVVHWVDQGOLDELOLWLHVFDUULHGDWIDLU
&DVKDQGFDVKHTXLYDOHQWV      YDOXHWKURXJKSURðWRUORVV    

CURRENT ASSETS 269,356 248,779 56,172 54,170 6KDUHRISURðWLQMRLQWYHQWXUH    

7UDGHDQGRWKHUSD\DEOHV      'HFUHDVHLQQRQFXUUHQWSUHSD\PHQWV    

%DQNRYHUGUDIW      ,QFUHDVHLQLQYHQWRU\    

7HUPORDQ      ,QFUHDVHLQWUDGHDQGRWKHUUHFHLYDEOHV    

,QFRPHWD[SD\DEOH     ,QFUHDVHGHFUHDVHLQWUDGHDQGRWKHUSD\DEOHV    

3URYLVLRQVIRUOLDELOLWLHVDQGFKDUJHV      'HFUHDVHLQFUHDVHLQSURYLVLRQVIRUOLDELOLWLHVDQGFKDUJHV    

'HULYDWLYHðQDQFLDOOLDELOLWLHV      ,QWHUHVWSDLG    

CURRENT LIABILITIES (176,841) (156,927) - (23) ,QFRPHWD[HVSDLG    

'HIHUUHGWD[OLDELOLWLHV      NET CASH GENERATED FROM OPERATING ACTIVITIES 43,886 52,770 22,687 23,032

3URYLVLRQVIRUOLDELOLWLHVDQGFKDUJHV      CASH FLOW FROM INVESTING ACTIVITIES

7HUPORDQ      3XUFKDVHVRISURSHUW\SODQWDQGHTXLSPHQWDQGLQWDQJLEOHV    

NON-CURRENT LIABILITIES (48,273) (56,851)  - 3URFHHGVIURPVDOHRISURSHUW\SODQWDQGHTXLSPHQW    

NET ASSETS 224,050 210,544 80,965 77,249 'LYLGHQGVUHFHLYHGIURPMRLQWYHQWXUH    

,QWHUHVWUHFHLYHG    

EQUITY NET CASH FROM INVESTING ACTIVITIES (35,808) (43,351) - -

6KDUHFDSLWDO      CASH FLOW FINANCING ACTIVITIES

6KDUHSUHPLXP      5HSD\PHQWRIWHUPORDQ    

2WKHUUHVHUYHV      'LYLGHQGVSDLG    

7UDQVODWLRQUHVHUYH      3URFHHGVIURPLVVXHRIVKDUHV    

5HWDLQHGHDUQLQJV      NET CASH FROM FINANCING ACTIVITIES (29,985) (22,909) (23,985) (21,409)

TOTAL EQUITY ATTRIBUTABLE TO EQUITY SHAREHOLDERS NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (21,907) (13,490) (1,298) 1,623
OF THE PARENT COMPANY 224,050 210,544 80,965 77,249 1HWFDVKDQGFDVKHTXLYDOHQWVDWWKHEHJLQQLQJRIWKHSHULRG    
TOTAL EQUITY 224,050 210,544 80,965 77,249 ([FKDQJHUDWHPRYHPHQW    
7KHVHðQDQFLDOVWDWHPHQWVZHUHDSSURYHGE\WKH%RDUGRI'LUHFWRUVRQ0DUFKDQGZHUHVLJQHGRQLWVEHKDOIE\ NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (59,331) (36,673) 940 2,238

&DVKDQGFDVKHTXLYDOHQWVDWWKHHQGRIWKHSHULRG    

Lindsay Page %DQNRYHUGUDIWDWWKHHQGRIWKHSHULRG    
&KLHI2SHUDWLQJ2τFHUDQG*URXS)LQDQFH'LUHFWRU
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (59,331) (36,673) 940 2,238
&RPSDQ\QXPEHU

86 Ted Baker Plc Annual Report and Accounts 2017/18 87

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS
27
7. PROFIT ATTRIBUTABLE TO TED BAKER PLC 10. INTANGIBLE ASSETS
7KH SURðW DIWHU WD[ IRU WKH  ZHHNV HQGHG  -DQXDU\  RI 7HG %DNHU 3OF WKH SDUHQW FRPSDQ\ ZDV æ
KEY MONEY COMPUTER COMPUTER TOTAL
æ7KH'LUHFWRUVKDYHDSSURYHGWKHLQFRPHVWDWHPHQWIRUWKHSDUHQWFRPSDQ\ SOFTWARE SOFTWARE UNDER
DEVELOPMENT

8. DIVIDENDS PER SHARE æâ æâ æâ æâ

COST
52 WEEKS ENDED 52 WEEKS ENDED
27 JANUARY 28 JANUARY $W-DQXDU\    
2018 2017
$GGLWLRQVWUDQVIHUV    
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([FKDQJHUDWHPRYHPHQW    
,QWHULPGLYLGHQGSDLGRISSHURUGLQDU\VKDUHS  
AT 27 JANUARY 2018 1,381 27,800 13,115 42,296
24,553 21,736

$ðQDOGLYLGHQGLQUHVSHFWRIRISSHUVKDUHDPRXQWLQJWRDGLYLGHQGSD\DEOHRIæLVWREHSURSRVHGDWWKH AMORTISATION
$QQXDO*HQHUDO0HHWLQJRQ-XQH $W-DQXDU\    

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9. EARNINGS PER SHARE 'LVSRVDOV    

52 WEEKS ENDED 52 WEEKS ENDED ([FKDQJHUDWHPRYHPHQW    

27 JANUARY 28 JANUARY AT 27 JANUARY 2018 - 7,923  7,923
2018 2017

1XPEHURIVKDUHV 1R 1R

NET BOOK VALUE
:HLJKWHGQXPEHURIRUGLQDU\VKDUHVRXWVWDQGLQJ  
AT 28 JANUARY 2017 624 8,967 14,854 24,445
(σHFWRIGLOXWLYHRSWLRQV  
AT 27 JANUARY 2018 1,381 19,877 13,115 34,373
WEIGHTED NUMBER OF ORDINARY SHARES OUTSTANDING – DILUTED 44,595,375 44,550,769

EARNINGS: æâ æâ KEY MONEY COMPUTER COMPUTER TOTAL

SOFTWARE SOFTWARE UNDER
3URðWIRUWKHSHULRGEDVLFDQGGLOXWHG   DEVELOPMENT
3URðWIRUWKHSHULRGDGMXVWHG   æâ æâ æâ æâ

COST
%DVLFHDUQLQJVSHUVKDUH S S $W-DQXDU\    
$GMXVWHGHDUQLQJVSHUVKDUH S S $GGLWLRQVWUDQVIHUV    
'LOXWHGHDUQLQJVSHUVKDUH S S 'LVSRVDOV    
$GMXVWHGGLOXWHGHDUQLQJVSHUVKDUH S S ([FKDQJHUDWHPRYHPHQW    
'LOXWHGHDUQLQJVSHUVKDUHDQGDGMXVWHGGLOXWHGHDUQLQJVSHUVKDUHKDYHEHHQFDOFXODWHGXVLQJDGGLWLRQDORUGLQDU\VKDUHVRISHDFKDYDLODEOHXQGHUWKH7HG%DNHU6KDUHVDYH AT 28 JANUARY 2017 624 13,619 14,854 29,097
6FKHPHDQGWKH7HG%DNHU3/&/RQJ7HUP,QFHQWLYH3ODQ
7KHUHZHUHQRVKDUHUHODWHGHYHQWVDIWHUWKHEDODQFHVKHHWGDWHWKDWPD\DσHFWHDUQLQJVSHUVKDUH
$GMXVWHGSURðWIRUWKHSHULRGDQGDGMXVWHGHDUQLQJVSHUVKDUHDUHVKRZQEHIRUHWKHH[FHSWLRQDOLWHPVQHWRIWD[RIæPæP
AMORTISATION

$W-DQXDU\    

&KDUJHIRUWKHSHULRG    

'LVSRVDOV    

([FKDQJHUDWHPRYHPHQW    

AT 28 JANUARY 2017 - 4,652 - 4,652

NET BOOK VALUE

AT 30 JANUARY 2016 879 5,719 10,649 17,247

AT 28 JANUARY 2017 624 8,967 14,854 24,445

104 Ted Baker Plc Annual Report and Accounts 2017/18 105
 A.4 Ted Baker Financial report 2018-2019
28

FINANCIAL STATEMENTS

GROUP AN D CO MPA N Y PR IM ARY F IN AN C IAL STAT EM EN TS

GROUP I N CO ME STATEM EN T

FOR THE 52 WEEKS ENDED NOTE 52 WEEKS ENDED 52 WEEKS ENDED

26 JANUARY 2019 26 JANUARY 27 JANUARY
2019 2018
†´ †´
Revenue   
Cost of sales  
GROSS PROFIT 360,095 360,805

Distribution costs  

Distribution costs before exceptional items  
)\GITXMSREPMXIQW   
%HQMRMWXVEXMZII\TIRWIW  
%HQMRMWXVEXMZII\TIRWIWFIJSVII\GITXMSREPMXIQW  
)\GITXMSREPMXIQW   
0MGIRGIMRGSQI  
Other operating income  
OPERATING PROFIT 54,502 70,727

Finance income   

Finance expense   
7LEVISJTVS½XSJNSMRXP]GSRXVSPPIHIRXMX]RIXSJXE\   
PROFIT BEFORE TAX  50,857 68,789

PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS 62,965 73,465

)\GITXMSREPMXIQW   
-RGSQIXE\I\TIRWI   
-RGSQIXE\I\TIRWIFIJSVII\GITXMSREPMXIQW  
-RGSQIXE\VIPEXMRKXSI\GITXMSREPMXIQW  
PROFIT FOR THE PERIOD 40,728 52,744

EARNINGS PER SHARE

&EWMG  T T

Diluted  T T

NOTES:
*SVXLI]IEVIRHIH.ERYEV]I\GITXMSREPMXIQWVIPEXMRKXSMQTEMVQIRXSJVIXEMPEWWIXWSJ†LEZIFIIRVIGPEWWM½IHJVSQEHQMRMWXVEXMZII\TIRWIWXSHMWXVMFYXMSRGSWXW

78
 29

FINANCIAL STATEMENTS

GROUP AN D CO MPA N Y BALAN C E SHEET

AT 26 JANUARY 2019 NOTE GROUP GROUP COMPANY COMPANY

26 JANUARY 27 JANUARY 26 JANUARY 27 JANUARY
2019 2018 2019 2018
†´ †´ †´ †´
-RXERKMFPIEWWIXW    - -

4VSTIVX]TPERXERHIUYMTQIRX    - -

-RZIWXQIRXMRWYFWMHMEV]  - -  
-RZIWXQIRXMRIUYMX]EGGSYRXIHMRZIWXII    - -
Deferred tax assets    - -
4VITE]QIRXW   - -
NON-CURRENT ASSETS 184,904 179,808 24,978 24,793
-RZIRXSVMIW    - -
Trade and other receivables     
%QSYRXHYIJVSQIUYMX]EGGSYRXIHMRZIWXII    - -
(IVMZEXMZI½RERGMEPEWWIXW    - -
'EWLERHGEWLIUYMZEPIRXW     
CURRENT ASSETS 319,686 269,356 55,923 56,172
TOTAL ASSETS 504,590 449,164 80,900 80,965
Trade and other payables     -
&EROSZIVHVEJX    - -
Term loan    - -
-RGSQIXE\TE]EFPI   - -
(IVMZEXMZI½RERGMEPPMEFMPMXMIW    - -
CURRENT LIABILITIES (211,954) (176,841) (771) -
Deferred tax liabilities    - -
Term loan    - -
NON-CURRENT LIABILITIES (47,918) (48,273) - -
TOTAL LIABILITIES (259,872) (225,114)  -
NET ASSETS 244,718 224,050 80,130 80,965

EQUITY

7LEVIGETMXEP     

7LEVITVIQMYQ     
Other reserves     
Translation reserve    - -
Retained earnings     
TOTAL EQUITY ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE PARENT COMPANY 244,718 224,050 80,130 80,965
TOTAL EQUITY 244,718 224,050 80,130 80,965

8LIWI½RERGMEPWXEXIQIRXW[IVIETTVSZIHF]XLI&SEVHSJ(MVIGXSVWSR1EVGLERH[IVIWMKRIHSRMXWFILEPJF]

Lindsay Page
Director
'SQTER]RYQFIV

82
 30

FINANCIAL STATEMENTS

GROU P A ND CO MPA N Y C ASH F LOW STATEM EN T

FOR THE 52 WEEKS ENDED GROUP GROUP COMPANY COMPANY

26 JANUARY 2019 52 WEEKS 52 WEEKS 52 WEEKS 52 WEEKS
ENDED ENDED ENDED ENDED
26 JANUARY 2019 27 JANUARY 2018 26 JANUARY 2019 27 JANUARY 2018
†´ †´ †´ †´

CASH GENERATED FROM OPERATIONS

4VS½XJSVXLITIVMSH    
%HNYWXIHJSV
-RGSQIXE\I\TIRWI   - -
Depreciation and amortisation   - -
-QTEMVQIRXW   - -
0SWWSRHMWTSWEPSJTVSTIVX]TPERXERHIUYMTQIRX   - -
7LEVIFEWIHTE]QIRXWGLEVKIGVIHMX    
2IX½RERGII\TIRWI   - -
2IXGLERKIMRHIVMZEXMZI½RERGMEPEWWIXWERHPMEFMPMXMIWGEVVMIHEXJEMVZEPYIXLVSYKLTVS½XSVPSWW   - -
7LEVISJTVS½XMRNSMRXZIRXYVI   - -
-RGVIEWI HIGVIEWIMRRSRGYVVIRXTVITE]QIRXW   - -
-RGVIEWIMRMRZIRXSV]   - -
(IGVIEWIMRGVIEWI MRXVEHIERHSXLIVVIGIMZEFPIW     
-RGVIEWIHIGVIEWI MRXVEHIERHSXLIVTE]EFPIW    
Decrease in provisions for liabilities and charges -  - -
-RXIVIWXTEMH   - -
-RGSQIXE\IWTEMH   - -
NET CASH GENERATED FROM OPERATING ACTIVITIES 63,232 43,886 26,437 22,687
CASH FLOW FROM INVESTING ACTIVITIES
4YVGLEWIWSJTVSTIVX]TPERXERHIUYMTQIRXERHMRXERKMFPIW   - -
4VSGIIHWJVSQWEPISJTVSTIVX]TPERXERHIUYMTQIRX -  - -
&YWMRIWWEGUYMWMXMSRRIXSJGEWLEGUYMVIH  - - -
(MZMHIRHWVIGIMZIHJVSQNSMRXZIRXYVI   - -
-RXIVIWXVIGIMZIH   - -
NET CASH FROM INVESTING ACTIVITIES (48,267) (35,808) - -
CASH FLOW FINANCING ACTIVITIES
Repayment of term loan   - -
Dividends paid    
4VSGIIHWJVSQMWWYISJWLEVIW    
NET CASH FROM FINANCING ACTIVITIES (32,778) (29,985) (27,278) (23,985)
NET DECREASE IN CASH AND CASH EQUIVALENTS (17,813) (21,907) (841) (1,298)
2IXGEWLERHGEWLIUYMZEPIRXWEXXLIFIKMRRMRKSJXLITIVMSH    
)\GLERKIVEXIQSZIQIRX   - -
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (76,842) (59,331) 99 940

'EWLERHGEWLIUYMZEPIRXWEXXLIIRHSJXLITIVMSH    

&EROSZIVHVEJXEXXLIIRHSJXLITIVMSH   - -
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (76,842) (59,331) 99 940

83 Ted Baker Plc Annual Report and Accounts 2018/19

 31

NOTES TO THE FINANCIAL STATEMENTS

9. E ARN I N G S P E R S H AR E

52 WEEKS ENDED 52 WEEKS ENDED

26 JANUARY 27 JANUARY
2019 2018
2YQFIVSJWLEVIW 2S 2S
;IMKLXIHRYQFIVSJSVHMREV]WLEVIWSYXWXERHMRK  

)JJIGXSJHMPYXMZISTXMSRW  

WEIGHTED NUMBER OF ORDINARY SHARES OUTSTANDING – DILUTED 44,592,628 44,595,375

EARNINGS: †´ †´

4VS½XJSVXLITIVMSHFEWMGERHHMPYXIH  
4VS½XJSVXLITIVMSHEHNYWXIH  

&EWMGIEVRMRKWTIVWLEVI T T

%HNYWXIHIEVRMRKWTIVWLEVI T T

Diluted earnings per share T T

%HNYWXIHHMPYXIHIEVRMRKWTIVWLEVI T T

(MPYXIHIEVRMRKWTIVWLEVIERHEHNYWXIHHMPYXIHIEVRMRKWTIVWLEVILEZIFIIRGEPGYPEXIHYWMRKEHHMXMSREPSVHMREV]WLEVIWSJTIEGLEZEMPEFPIYRHIVXLI8IH&EOIV7LEVIWEZI7GLIQIERH
XLI8IH&EOIV40'0SRK8IVQ-RGIRXMZI4PER
There were no share related events after the balance sheet date that may affect earnings per share.
%HNYWXIHTVS½XJSVXLITIVMSHERHEHNYWXIHIEVRMRKWTIVWLEVIEVIWLS[RFIJSVII\GITXMSREPMXIQWRIXSJXE\ SJ†Q†Q 

10. INTA NG I B L E A S S ETS

REACQUIRED KEY MONEY COMPUTER COMPUTER TOTAL

RIGHT SOFTWARE SOFTWARE
UNDER
DEVELOPMENT
†´ †´ †´ †´ †´
COST
%X.ERYEV] -    
%HHMXMSRWXVERWJIVW  -   
Disposals -  - - 
)\GLERKIVEXIQSZIQIRX -   - 
AT 26 JANUARY 2019 3,781 633 47,957 4,147 56,518

AMORTISATION
%X.ERYEV] - -  - 
Charge for the period  -  - 
Disposals - - - - -
)\GLERKIVEXIQSZIQIRX - -  - 
AT 26 JANUARY 2019 145 - 12,700 - 12,845

NET BOOK VALUE

AT 27 JANUARY 2018 - 1,381 19,877 13,115 34,373
AT 26 JANUARY 2019 3,636 633 35,257 4,147 43,673

99 Ted Baker Plc Annual Report and Accounts 2018/19

 APPENDIX B - TED BAKER COLLECTED DATA AND CALCULATIONS
32
Ted Baker
Input Data
Data From Financial Statements
PBIT/ operating 
in £'000 Revenue COS Gross profit PBT PAT EPS GBX
profit / NET profit
2019 January 26th 617,442 257,347 360,095 54,502 50,857 40,728 92
2018 January 27th 591,670 230,865 360,805 70,727 68,789 52,744 119
2017 January 29th  530,986 207,257 323,729 62,497 61,271 46,566 106

 Inventory  Trade receivables  Term loan  Trade payables  Term loan non 

Current assets Inventory (Closing) Total assets Current liabilities
(Opening) (debtors) (current) (creditors) (current)

2019 January 26th 319,686 225,849 187,227 78,604 4,000 504,590 211,954 108,628 43,000
2018 January 27th 269,353 187,227 158,500 64,273 5,500 449,164 176,841 82,858 47,000
2017 January 29th  246,779 158,500 125,323 64,273 600 424,322 156,927 80,995 52,500
NET cash from opr. 
Equity = NET  Number of shares 
Total liabilities Retained earning Activities (as at the  Interest payable Dividends
assets issued
date of report)
2019 January 26th 259,872 244,718 227,262 63,232 3,791 27,350 44,533
2018 January 27th 225,114 224,050 214,376 43,886 3,341 24,553 44,306
2017 January 29th  213,778 210,544 183,774 52,779 2,886 21,736 44,551

Share price (Yahoo Finance)
Date Open Close High Low Volume
25 Jan 2019 1,781.00 1,811.00 1,848.00 1,781.00 102,430
26 Jan 2018 2,964.00 3,030.00 3,030.00 2,962.00 182,063
27 Jan 2017 2,891.00 2,840.00 2,893.00 2,826.00 56,789
 33
Calculations
Profitability Ratios
Return on Capital Employed (ROCE) = PBIT / (share capital and reserves + long term loans ) * 100
ROCE PBIT Equity Non‐current loans
2018 18.94 54,502 244,718 43,000
2017 26.09 70,727 224,050 47,000
2016 23.76 62,497 210,544 52,500
Return on Equity (ROE) = PAT / equity * 100
ROE PAT Equity
2018 16.64 40,728 244,718
2017 23.54 52,744 224,050
2016 22.12 46,566 210,544
Gross profit ratio = gross profit / revenue  * 100
GPR Gross profit Revenue
2018 58.32 360,095 617,442
2017 60.98 360,805 591,670
2016 60.97 323,729 530,986
Net profit ratio  = PBT / revenue * 100
Net Profit Ratio Revenue PBT
2018 8.24 617,442 50,857
2017 11.63 591,670 68,789
2016 11.54 530,986 61,271
Liquidity Ratios
Current Ratio = current assets/current liabilities
34
Current Ratio Current assets Current liabilities
2018 1.51 319,686 211,954
2017 1.52 269,353 176,841
2016 1.57 246,779 156,927
Quick ratio = (current assets ‐ inventory) / current liabilities
Quick Ratio Current assets Inventory Current liabilities Year‐over‐year Growth = ((This Year – Last Year) / Last Year)*100
2018 0.44 319,686 225,849 211,954 Current assets Inventory Current liabilities
2017 0.46 269,353 187,227 176,841 30% 269% 35%
2016 1.18 246,779 61,271 156,927 Comparing 2016 and 2018 data
Cash Flow Ratios ‐ AT THE **DATE** OF THE REPORT
Current liability cash cover = net cash flow from operating activities / creditors due within one year
Current liability cash coNET cash from opr.   Trade Payables
2019 January 26th 0.58 63,232 108,628
2018 January 27th 0.53 43,886 82,858
2017 January 29th  0.65 52,779 80,995
Quality of profits = net cash flow from operating activities / operating profit
Quality of Profits NET cash from opr.  PBIT
2019 January 26th 1.16 63,232 54,502
2018 January 27th 0.62 43,886 70,727
2017 January 29th  0.84 52,779 62,497
Operating cash cycle = operating cash cycle = stock days + debtor days ‐ creditor days 
Operating cash cycle Stock days Debtor days Creditor days
2018 234 321 47 134
2017 220 297 40 117
2016 (25) 53 45 123
Efficiency Ratios
Inventory days ratio =inventory / COS * 365
35
Inventory Ratio Inventory COS DAYS/YEAR
2018 321 225,849 257,347 365
2017 297 187,227 230,865 365
2016 53 61,271 424,322 365
Asset turnover = turnover/total assets
Asset turnover Turnover Total assets
2018 1.22 617,442 504,590
2017 1.32 591,670 449,164
2016 2.48 530,986 213,778
Debtor's days   = trade receivables/ credit sales (or revenue)* 365  
Debtor Days Trade receivables Credit sales [revenue in this instance]
2018 47 78,604 617,442
2017 40 64,273 591,670
2016 45 64,273 530,986
Creditor's days  = trade payables / credit purchases * 365 
Creditor Days Trade payables Credit purchases COS Opening Inventory Closing Inventory
2018 134 108,628 295,969 257,347 187,227 225,849
2017 117 82,858 259,592 230,865 158,500 187,227
2016 123 80,995 240,434 207,257 125,323 158,500

Inventory turnover  = COS/average inventory; Average inventory = (opening inventory + closing inventory)/2
Inventory turnover Average inventory COS Opening Inventory Closing Inventory
2018 1.25 206,538 257,347 187,227 225,849
2017 1.34 172,864 230,865 158,500 187,227
2016 1.46 141,912 207,257 125,323 158,500
Investment Ratios
Dividends per share =dividends/number OF shares issued * 100
36
Dividends per Share G Dividends   Number of shares issued
2018 61.42 27,350 44,532.779
2017 55.42 24,553 44,306.134
2016 48.79 21,736 44,550.769
Dividend yield = dividends per share / market price per share * 100
Dividend Yield % Dividends per shareMarket price per share GBX
2018 3.39 61.42 1,811.00
2017 1.83 55.42 3,030.00
2016 1.72 48.79 2,840.00
Dividend cover = net profit after tax /paid and proposed ordinary dividends
Dividend cover PAT Dividend
2018 1.49 40,728 27,350
2017 2.15 52,744 24,553
2016 2.14 46,566 21,736
Dividend pay‐out = ordinary dividends / profit after tax *100
Dividend pay‐out Dividend PAT
2018 67.15 27,350 40,728
2017 46.55 24,553 52,744
2016 46.68 21,736 46,566
Price earning ratio = market price per share / EPS
P/E RATIO GBX Market price per sh EPS GBX
2018 19.79 1,811.00 91.50
2017 25.46 3,030.00 119.00
2016 26.87 2,840.00 105.70
Solvency Ratios
Gearing ratio = long term loans / equity * 100 
37
Gearing ratio Non‐Current loans Equity
2018 17.57 43,000 244,718
2017 20.98 47,000 224,050
2016 24.94 52,500 210,544

Debt ratio = total liabilities / total assets 
Debt ratio total liabilities total assets
2018 0.52 259,872 504,590
2017 0.50 225,114 449,164
2016 0.50 213,778 424,322
 Interest cover = PBIT/ interest payable (finance cost)
Interest cover PBIT Finance cost
2018 14.38 54,502 3,791
2017 21.17 70,727 3,341
2016 21.66 62,497 2,886
Altman's Z score
Option 1
38
Altman's Z score z= 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0X5

index Z ‐ 2018 22.99 Z ‐ 2017 2.56 Z ‐ 2016 2.42

x1 = working capital / total assets
1.2 0.21 0.26 0.21 0.25 0.21 0.25
x2 = retained earning / total assets
1.4 0.45 0.54 0.48 0.57 0.43 0.52
x3 = PBIT / total assets
3.3 0.11 0.13 0.16 0.16 0.15 0.15
x4 = market value of equity  / book value of debt 
0.6 17.16 20.59 0.00 0.00 0.00 0.00
x5 = sales / total assets
1 1.22 1.47 1.32 1.58 1.25 1.50

working capita =( current assets ‐ current liabilities) 
Working Capita Current assets  Current liabilities
2018 107,732 319,686 211,954
2017 92,512 269,353 176,841
2016 89,852 246,779 156,927

X4
x4 = market value of equity  / book value of debt 
market value of equity = total number of shares x market value per share (in £)
book value of debt = current debt +non current debts
Market value of 
Number of shares Long term dept Short term debt
share in GBP
2018 17.16 44,532.779 18.11 43,000 4,000
2017 0.00 44,306.134 0 47,000 5,500
2016 0.00 44,550.769 0 52,500 600
Option 2 (Investopedia)
Altman's Z score z= 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0X5
39
index Z ‐ 2018 4.33 Z ‐ 2017 2.75 Z ‐ 2016 2.60
x1 = working capital / total assets
1.2 0.21 0.26 0.21 0.25 0.21 0.25
x2 = retained earning / total assets
1.4 0.45 0.63 0.48 0.67 0.43 0.61
x3 = PBIT / total assets
3.3 0.11 0.36 0.16 0.52 0.15 0.49
x4 = market value of equity  /total liabilities debt 
0.6 3.10 1.86 0.00 0.00 0.00 0.00
x5 = sales / total assets
1 1.22 1.22 1.32 1.32 1.25 1.25

working capita =( current assets ‐ current liabilities) 
Working Capita Current assets  Current liabilities
2018 107,732 319,686 211,954
2017 92,512 269,353 176,841
2016 89,852 246,779 156,927

X4
x4 = market value of equity  / total liabilities
market value of equity = total number of shares x market value per share (in £)

Market value of 
X4 Number of shares Total Liabilities
share in GBP
2018 3.10 44,532.779 18.11 259,872
2017 0.00 44,306.134 0.00 225,114
2016 0.00 44,550.769 0.00 213,778
 APPENDIX C - BURBERRY COLLECTED DATA AND CALCULATIONS
40
Burberry
Input Data
Data From Financial Statements
PBIT/ operating 
in £'000 Revenue COS Gross profit PBT PAT EPS GBX
profit / NET profit
2019  March 30th  2,720,200 859,400 1,860,800 437,200 440,600 339,100 82
2018 March 31st 2,732,800 835,400 1,897,400 410,300 412,600 293,600 69
2017 March 31st 2,766,000 832,900 1,933,100 394,300 394,800 287,700 65

 Inventory  Trade receivables  Term loan  Trade payables  Term loan non 

Current assets Inventory (Closing) Total assets Current liabilities
(Opening) (debtors) (current) (creditors) (current)

2019  March 30th  1,608,600 465,100 411,800 251,100 0 2,332,200 640,100 525,700 0

2018 March 31st 1,541,700 411,800 505,300 206,300 0 2,223,000 552,900 460,900 0
2017 March 31st 1,638,600 505,300 486,700 275,600 0 2,413,400 565,100 459,100 0
NET cash from opr. 
Equity = NET  Number of shares 
Total liabilities Retained earning Activities (as at the  Interest payable Dividends
assets issued
date of report)
2019  March 30th  872,200 1,460,000 965,600 411,400 1,800 171,100 451,100
2018 March 31st 797,600 1,425,400 946,100 678,400 1,600 169,400 429,400
2017 March 31st 715,600 1,697,800 1,169,000 560,700 1,500 164,500 442,200

Share price (Yahoo Finance)
Date Open Close High Low Volume
29/03/2019 1942.00 1962.00 1931.50 1954.50 1036048
29/03/2018 1693.50 1721.00 1693.50 1696.00 2300034
31/03/2017 1739.00 1739.00 1724.00 1724.00 1428792
 41
Calculations
Profitability Ratios
Return on Capital Employed (ROCE) = PBIT / (share capital and reserves + long term loans ) * 100
ROCE PBIT Equity Non‐current loans
2018 29.95 437,200 1,460,000 0
2017 28.78 410,300 1,425,400 0
2016 23.22 394,300 1,697,800 0
Return on Equity (ROE) = PAT / equity * 100
ROE PAT Equity
2018 23.23 339,100 1,460,000
2017 20.60 293,600 1,425,400
2016 16.95 287,700 1,697,800
Gross profit ratio = gross profit / revenue  * 100
GPR Gross profit Revenue
2018 68.41 1,860,800 2,720,200
2017 69.43 1,897,400 2,732,800
2016 69.89 1,933,100 2,766,000
Net profit ratio  = PBT / revenue * 100
Net Profit Ratio Revenue PBT
2018 16.20 2,720,200 440,600
2017 15.10 2,732,800 412,600
2016 14.27 2,766,000 394,800
Liquidity Ratios
Current Ratio = current assets/current liabilities
42
Current Ratio Current assets Current liabilities
2018 2.51 1,608,600 640,100
2017 2.79 1,541,700 552,900
2016 2.90 1,638,600 565,100
Quick ratio = (current assets ‐ inventory) / current liabilities
Quick Ratio Current assets Inventory Current liabilities
2018 1.79 1,608,600 465,100 640,100
2017 2.04 1,541,700 411,800 552,900
2016 2.20 1,638,600 394,800 565,100
Cash Flow Ratios ‐ AT THE **DATE** OF THE REPORT
Current liability cash cover = net cash flow from operating activities / creditors due within one year
Cash Cover NET cash from opr.  Trade Payables
2019  March 30th  0.78 411,400 525,700
2018 March 31st 1.47 678,400 460,900
2017 March 31st 1.22 560,700 459,100
Quality of profits = net cash flow from operating activities / operating profit
Quality of Profits NET cash from opr.  PBIT
2019  March 30th  0.94 411,400 437,200
2018 March 31st 1.65 678,400 410,300
2017 March 31st 1.42 560,700 394,300
Operating cash cycle = operating cash cycle = stock days + debtor days ‐ creditor days 
Operating cash cycle Stock days Debtor days Creditor days
2018 21 198 34 211
2017 (19) 180 28 227
2016 (100) 60 37 197
Efficiency Ratios
Inventory days ratio =inventory / COS * 365
43
Inventory Ratio Inventory COS DAYS/YEAR
2018 198 465,100 859,400 365
2017 180 411,800 835,400 365
2016 60 394,800 2,413,400 365
Asset turnover = turnover/total assets
Asset turnover Turnover Total assets
2018 1.17 2,720,200 2,332,200
2017 1.23 2,732,800 2,223,000
2016 3.87 2,766,000 715,600
Debtor's days   = trade receivables/ credit sales (or revenue)* 365  
Debtor Days Trade receivables Credit sales [revenue in this instance]
2018 34 251,100 2,720,200
2017 28 206,300 2,732,800
2016 37 275,600 2,766,000
Creditor's days  = trade payables / credit purchases * 365 
Creditor Days Trade payables Credit purchases COS Opening Inventory Closing Inventory
2018 211 525,700 912,700 859,400 411,800 465,100
2017 227 460,900 741,900 835,400 505,300 411,800
2016 197 459,100 851,500 832,900 486,700 505,300

Inventory turnover  = COS/average inventory; Average inventory = (opening inventory + closing inventory)/2
Inventory turnover Average inventory COS Opening Inventory Closing Inventory
2018 1.96 438,450 859,400 411,800 465,100
2017 1.82 458,550 835,400 505,300 411,800
2016 1.68 496,000 832,900 486,700 505,300
Investment Ratios
Dividends per share =dividends/number OF shares issued * 100
44
Dividends per Share G Dividends   Number of shares issued
2018 37.93 171,100 451,100.000
2017 39.45 169,400 429,400.000
2016 37.20 164,500 442,200.000
Dividend yield = dividends per share / market price per share * 100
Dividend Yield % Dividends per shareMarket price per share GBX
2018 1.93 37.93 1,962.00
2017 2.29 39.45 1,721.00
2016 2.14 37.20 1,739.00
Dividend cover = net profit after tax /paid and proposed ordinary dividends
Dividend cover PAT Dividend
2018 1.98 339,100 171,100
2017 1.73 293,600 169,400
2016 1.75 287,700 164,500
Dividend pay‐out = ordinary dividends / profit after tax *100
Dividend pay‐out Dividend PAT
2018 50.46 171,100 339,100
2017 57.70 169,400 293,600
2016 57.18 164,500 287,700
Price earning ratio = market price per share / EPS
P/E RATIO GBX Market price per sh EPS GBX
2018 23.84 1,962.00 82.30
2017 24.98 1,721.00 68.90
2016 26.63 1,739.00 65.30
Solvency Ratios
Gearing ratio = long term loans / equity * 100 
45
Gearing ratio Non‐Current loans Equity
2018 0.00 0 1,460,000
2017 0.00 0 1,425,400
2016 0.00 0 1,697,800

Debt ratio = total liabilities / total assets 
Debt ratio total liabilities total assets
2018 0.37 872,200 2,332,200
2017 0.36 797,600 2,223,000
2016 0.30 715,600 2,413,400
 Interest cover = PBIT/ interest payable (finance cost)
Interest cover PBIT Finance cost
2018 242.89 437,200 1,800
2017 256.44 410,300 1,600
2016 262.87 394,300 1,500
Altman's Z score
Option 1
46
Altman's Z score z= 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0X5

index Z ‐ 2018 #DIV/0! Z ‐ 2017 #DIV/0! Z ‐ 2016 #DIV/0!

x1 = working capital / total assets
1.2 0.42 0.50 0.44 0.53 0.44 0.53
x2 = retained earning / total assets
1.4 0.41 0.50 0.43 0.51 0.48 0.58
x3 = PBIT / total assets
3.3 0.19 0.22 0.18 0.18 0.16 0.16
x4 = market value of equity  / book value of debt 
0.6 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
x5 = sales / total assets
1 1.17 1.40 1.23 1.48 1.15 1.38

working capita =( current assets ‐ current liabilities) 
Working Capita Current assets  Current liabilities
2018 968,500 1,608,600 640,100
2017 988,800 1,541,700 552,900
2016 1,073,500 1,638,600 565,100

X4
x4 = market value of equity  / book value of debt 
market value of equity = total number of shares x market value per share (in £)
book value of debt = current debt +non current debts
Market value of 
Number of shares Long term dept Short term debt
share in GBP
2018 #DIV/0! 451,100 19.62 0 0
2017 #DIV/0! 429,400 17.21 0 0
2016 #DIV/0! 442,200 17.39 0 0

Organisation has not declared any term loans in their financial statements, therefore, the formula didn't provide any result.
Option 2 (Investopedia)
Altman's Z score z= 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0X5
47
index Z ‐ 2018 8.95 Z ‐ 2017 8.53 Z ‐ 2016 9.34
x1 = working capital / total assets
1.2 0.42 0.50 0.44 0.53 0.44 0.53
x2 = retained earning / total assets
1.4 0.41 0.58 0.43 0.60 0.48 0.68
x3 = PBIT / total assets
3.3 0.19 0.62 0.18 0.61 0.16 0.54
x4 = market value of equity  /total liabilities debt 
0.6 10.15 6.09 9.27 5.56 10.75 6.45
x5 = sales / total assets
1 1.17 1.17 1.23 1.23 1.15 1.15

working capita =( current assets ‐ current liabilities) 
Working Capita Current assets  Current liabilities
2018 968,500 1,608,600 640,100
2017 988,800 1,541,700 552,900
2016 1,073,500 1,638,600 565,100

X4
x4 = market value of equity  / total liabilities
market value of equity = total number of shares x market value per share (in £)

Market value of 
X4 Number of shares Total Liabilities
share in GBP
2018 10.15 451,100 19.62 872,200
2017 9.27 429,400 17.21 797,600
2016 10.75 442,200 17.39 715,600
 APPENDIX D - MULBERRY COLLECTED DATA AND CALCULATIONS
48
Mulberry
Input Data
Data From Financial Statements
PBIT/ operating 
in £'000 Revenue COS Gross profit PBT PAT EPS GBX
profit / NET profit
2019  March 30th  166,268 63,984 102,284 (4,980)  (5,008)  4,851 8
2018 March 31st 169,718 62,000 107,718 6,736 6,917 4,906 8
2017 March 31st 168,121 64,535 103,586 7,107 7,533 4,990 8

 Inventory  Trade receivables  Term loan  Trade payables  Term loan non 

Current assets Inventory (Closing) Total assets Current liabilities
(Opening) (debtors) (current) (creditors) (current)

2019  March 30th  67,590 39,740 44,647 13,688 2,709 109,170 26,693 23,984 1,770
2018 March 31st 84,914 44,647 42,822 15,196 0 119,335 29,707 28,814 1,385
2017 March 31st 78,584 42,822 44,378 14,669 0 115,251 29,607 28,350 0
NET cash from opr. 
Equity = NET  Number of shares 
Total liabilities Retained earning Activities (as at the  Interest payable Dividends
assets issued
date of report)
2019  March 30th  28,436 80,707 67,555 3,943 258 2,970 59,400
2018 March 31st 31,092 88,243 73,165 11,426 29 2,969 59,400
2017 March 31st 29,607 85,644 69,957 15,281 17 2,968 59,400

Share price (Yahoo Finance)
Date Open Close High Low Volume
29/03/2019 299.00 299.00 299.00 294.50 1440
29/03/2018 752.00 788.00 752.00 774.00 4733
31/03/2017 1072.00 1111.50 1023.76 1102.50 2595
 49
Calculations
Profitability Ratios
Return on Capital Employed (ROCE) = PBIT / (share capital and reserves + long term loans ) * 100

ROCE PBIT Equity Non‐current loans

2018 (6.04)  (4,980)  80,707 1,770
2017 7.52 6,736 88,243 1,385
2016 8.30 7,107 85,644 0
Return on Equity (ROE) = PAT / equity * 100
ROE PAT Equity
2018 6.01 4,851 80,707
2017 5.56 4,906 88,243
2016 5.83 4,990 85,644
Gross profit ratio = gross profit / revenue  * 100
GPR Gross profit Revenue
2018 61.52 102,284 166,268
2017 63.47 107,718 169,718
2016 61.61 103,586 168,121
Net profit ratio  = PBT / revenue * 100
Net Profit Ratio Revenue PBT
2018 (3.01)  166,268 (5,008) 
2017 4.08 169,718 6,917
2016 4.48 168,121 7,533
Liquidity Ratios
Current Ratio = current assets/current liabilities
50
Current Ratio Current assets Current liabilities
2018 2.53 67,590 26,693
2017 2.86 84,914 29,707
2016 2.65 78,584 29,607
Quick ratio = (current assets ‐ inventory) / current liabilities
Quick Ratio Current assets Inventory Current liabilities
2018 1.04 67,590 39,740 26,693
2017 1.36 84,914 44,647 29,707
2016 2.40 78,584 7,533 29,607
Cash Flow Ratios ‐ AT THE **DATE** OF THE REPORT
Current liability cash cover = net cash flow from operating activities / creditors due within one year
Cash Cover NET cash from opr.  Trade Payables
2019  March 30th  0.16 3,943 23,984
2018 March 31st 0.40 11,426 28,814
2017 March 31st 0.54 15,281 28,350
Quality of profits = net cash flow from operating activities / operating profit
Quality of Profits NET cash from opr.  PBIT
2019  March 30th  (0.8)  3,943 (4,980) 
2018 March 31st 1.70 11,426 6,736
2017 March 31st 2.15 15,281 7,107
Operating cash cycle = operating cash cycle = stock days + debtor days ‐ creditor days 
Operating cash cycle Stock days Debtor days Creditor days
2018 109 227 31 149
2017 131 263 33 165
2016 (109) 24 32 165
Efficiency Ratios
Inventory days ratio =inventory / COS * 365
51
Inventory Ratio Inventory COS DAYS/YEAR
2018 227 39,740 63,984 365
2017 263 44,647 62,000 365
2016 24 7,533 115,251 365
Asset turnover = turnover/total assets
Asset turnover Turnover Total assets
2018 1.52 166,268 109,170
2017 1.42 169,718 119,335
2016 5.68 168,121 29,607
Debtor's days   = trade receivables/ credit sales (or revenue)* 365  
Debtor Days Trade receivables Credit sales [revenue in this instance]
2018 31 13,688 166,268
2017 33 15,196 169,718
2016 32 14,669 168,121
Creditor's days  = trade payables / credit purchases * 365 
Creditor Days Trade payables Credit purchases COS Opening Inventory Closing Inventory
2018 149 23,984 59,077 63,984 44,647 39,740
2017 165 28,814 63,825 62,000 42,822 44,647
2016 165 28,350 62,979 64,535 44,378 42,822

Inventory turnover  = COS/average inventory; Average inventory = (opening inventory + closing inventory)/2
Inventory turnover Average inventory COS Opening Inventory Closing Inventory
2018 1.52 42,194 63,984 44,647 39,740
2017 1.42 43,735 62,000 42,822 44,647
2016 1.48 43,600 64,535 44,378 42,822
Investment Ratios
Dividends per share =dividends/number OF shares issued * 100
52
Dividends per Share G Dividends   Number of shares issued
2018 5.00 2,970 59,400.000
2017 5.00 2,969 59,400.000
2016 5.00 2,968 59,400.000
Dividend yield = dividends per share / market price per share * 100
Dividend Yield % Dividends per shareMarket price per share GBX
2018 1.67 5.00 299.00
2017 0.63 5.00 788.00
2016 0.45 5.00 1,111.50
Dividend cover = net profit after tax /paid and proposed ordinary dividends
Dividend cover PAT Dividend
2018 1.63 4,851 2,970
2017 1.65 4,906 2,969
2016 1.68 4,990 2,968
Dividend pay‐out = ordinary dividends / profit after tax *100
Dividend pay‐out Dividend PAT
2018 61.22 2,970 4,851
2017 60.52 2,969 4,906
2016 59.48 2,968 4,990
Price earning ratio = market price per share / EPS
P/E RATIO GBX Market price per sh EPS GBX
2018 36.46 299.00 8.20
2017 94.94 788.00 8.30
2016 132.32 1,111.50 8.40
Solvency Ratios
Gearing ratio = long term loans / equity * 100 
53
Gearing ratio Non‐Current loans Equity
2018 2.19 1,770 80,707
2017 1.57 1,385 88,243
2016 0.00 0 85,644

Debt ratio = total liabilities / total assets 
Debt ratio total liabilities total assets
2018 0.26 28,436 109,170
2017 0.26 31,092 119,335
2016 0.26 29,607 115,251
 Interest cover = PBIT/ interest payable (finance cost)
Interest cover PBIT Finance cost
2018 (19) (4,980) 258
2017 232.28 6,736 29
2016 418.06 7,107 17
Altman's Z score
Option 1
54
Altman's Z score z= 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0X5

index Z ‐ 2018 26.76 Z ‐ 2017 205.83 Z ‐ 2016 #DIV/0!

x1 = working capital / total assets
1.2 0.37 0.45 0.46 0.56 0.42 0.51
x2 = retained earning / total assets
1.4 0.62 0.74 0.61 0.74 0.61 0.73
x3 = PBIT / total assets
3.3 (0.05)  ‐0.05 0.06 0.06 0.06 0.06
x4 = market value of equity  / book value of debt 
0.6 39.65 23.79 337.96 202.77 #DIV/0! #DIV/0!
x5 = sales / total assets
1 1.52 1.83 1.42 1.71 1.46 1.75

working capita =( current assets ‐ current liabilities) 
Working Capita Current assets  Current liabilities
2018 40,897 67,590 26,693
2017 55,207 84,914 29,707
2016 48,977 78,584 29,607

X4
x4 = market value of equity  / book value of debt 
market value of equity = total number of shares x market value per share (in £)
book value of debt = current debt +non current debts
Market value of 
Number of shares Long term dept Short term debt
share in GBP
2018 39.65 59,400 2.99 1,770 2,709
2017 337.96 59,400 7.88 1,385 0
2016 #DIV/0! 59,400 11.115 0 0

Organisation has not declared any term loans for 2016  in their financial statements, therefore, the formula didn't provide any result.
Option 2 (Investopedia)
Altman's Z score z= 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0X5
55
index Z ‐ 2018 6.44 Z ‐ 2017 12.05 Z ‐ 2016 16.40
x1 = working capital / total assets
1.2 0.37 0.45 0.46 0.56 0.42 0.51
x2 = retained earning / total assets
1.4 0.62 0.87 0.61 0.86 0.61 0.85
x3 = PBIT / total assets
3.3 (0.05)  ‐0.15 0.06 0.19 0.06 0.20
x4 = market value of equity  /total liabilities debt 
0.6 6.25 3.75 15.05 9.03 22.30 13.38
x5 = sales / total assets
1 1.52 1.52 1.42 1.42 1.46 1.46

working capita =( current assets ‐ current liabilities) 
Working Capita Current assets  Current liabilities
2018 40,897 67,590 26,693
2017 55,207 84,914 29,707
2016 48,977 78,584 29,607

X4
x4 = market value of equity  / total liabilities
market value of equity = total number of shares x market value per share (in £)

Market value of 
X4 Number of shares Total Liabilities
share in GBP
2018 6.25 59,400 2.99 28,436
2017 15.05 59,400 7.88 31,092
2016 22.30 59,400 11.12 29,607
APPENDIX E - COMPARISON OF RATIOS AND DIAGRAMS
56

Comparison of ratios and diagrams

Profitability Ratios
ROCE %‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
ROCE % 2016 2017 2018
Ted Baker 23.8 26.1 18.9 RETURN ON CAPITAL EMPLOYED RATIO %
Burberry 23.2 28.8 29.9 40.0
Mulberry 8.3 7.5 (6.0)
30.0

20.0

10.0

0.0
2016 2017 2018
‐10.0

Ted Baker Burberry Mulberry

ROE %‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
ROE % 2016 2017 2018
Ted Baker 22.1 23.5 16.6 RETURN ON EQUITY RATIO %
Burberry 16.9 20.6 23.2 25.0
Mulberry 5.8 5.6 6.0 20.0
15.0
10.0
5.0
0.0
2016 2017 2018

Ted Baker Burberry Mulberry

 57
2016‐2018 comparison of Ted Baker, Burberry and Mulberry
GROSS PROFIT RATIO % 2016 2017 2018
Ted Baker 61.0 61.0 58.3 GROSS PROFIT RATIO %
Burberry 69.9 69.4 68.4 80.0
Mulberry 61.6 63.5 61.5 70.0
Apparel industry avarage * 45.8 43.7 45.0 60.0
50.0
*(Ready Ratios) 40.0
30.0
20.0
10.0
0.0
2016 2017 2018

Ted Baker Burberry Mulberry Apparel industry avarage *

016‐2018 comparison of Ted Baker, Burberry and Mulberry
NET PROFIT RATIO % 2016 2017 2018
Ted Baker 11.5 11.6 8.2 NET PROFIT RATIO %
Burberry 14.3 15.1 16.2 20.0
Mulberry 4.5 4.1 (3.0)
15.0

10.0

5.0

0.0
2016 2017 2018
‐5.0

Ted Baker Burberry Mulberry

 58
Efficiency Ratios
INVENTORY DAYS RATIO‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
INVENTORY DAYS RATIO 2016 2017 2018
Ted Baker 53 297 321 INVENTORY DAYS RATIO
Burberry 60 180 198 350
Mulberry 24 263 227
300
Standard 90 90 90
250
200
150
100
50
0
2016 2017 2018

Ted Baker Burberry Mulberry Standard

ASSET TURNOVER‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
ASSET TURNOVER 2016 2017 2018
Ted Baker 2.48 1.32 1.22 ASSET TURNOVER RATIO
Burberry 3.87 1.23 1.17 6.00
Mulberry 5.68 1.42 1.52 5.00

4.00
3.00

2.00
1.00
0.00
2016 2017 2018

Ted Baker Burberry Mulberry

 59
DEBTOR DAYS‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
DEBTOR DAYS 2016 2017 2018
Ted Baker 45 40 47 DEBTOR DAYS RATIO
Burberry 37 28 34 50
Mulberry 32 33 31 45
40
35
30
25
20
15
10
5
0
2016 2017 2018

Ted Baker Burberry Mulberry

CREDITOR DAYS‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
CREDITOR DAYS 2016 2017 2018
Ted Baker 123 117 134 CREDITOR DAYS RATIO
Burberry 197 227 211 250
Mulberry 165 165 149
200

150

100

50

0
2016 2017 2018

Ted Baker Burberry Mulberry

 60
INVENTORY TURNOVER‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
INVENTORY TURNOVER 2016 2017 2018
Ted Baker 1.5 1.3 1.2 INVENTORY TURNOVER RATIO
Burberry 1.7 1.8 2.0 2.5
Mulberry 1.5 1.4 1.5
Expected Turnover 2.0 2.0 2.0 2.0

1.5

1.0

0.5

0.0
2016 2017 2018

Ted Baker Burberry Mulberry Expected Turnover

Liquidity Ratios
CURRENT RATIO‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
CURRENT RATIO 2016 2017 2018
Ted Baker 1.6 1.5 1.5 CURRENT RATIO
Burberry 2.9 2.8 2.5 3.5
Mulberry 2.7 2.9 2.5 3.0
Safety Margin 1.0 1.0 1.0 2.5
2.0
1.5
1.0
0.5
0.0
2016 2017 2018

Ted Baker Burberry Mulberry Safety Margin

 61
QUICK RATIO‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
QUICK RATIO 2016 2017 2018
Ted Baker 1.2 0.5 0.4 QUICK RATIO
Burberry 2.2 2.0 1.8 3.0
Mulberry 2.4 1.4 1.0
2.5
Safety Margin 1.0 1.0 1.0
2.0

1.5

1.0

0.5

0.0
2016 2017 2018

Ted Baker Burberry Mulberry Safety Margin

Cash Flow Ratios ‐ At the  **DATE** of Annual Report
CURRENT LIABILITY CASH COVER‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
CURRENT LIABILITY CASH COVER 2016 2017 2018
Burberry 1.2 1.5 0.8 CURRENT LIABILITY CASH 
Mulberry 0.5 0.4 0.2 COVER RATIO
Safety Margin 1.0 1.0 1.0 2.0

1.5

1.0

0.5

0.0
2016 2017 2018

Burberry Mulberry Safety Margin

 62
QUALITY OF PROFITS‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
QUALITY OF PROFITS 2016 2017 2018
Ted Baker 1 1 1 QUALITY OF PROFITS RATIO
Burberry 1 2 1
Mulberry 2 2 (0.8)
2018

2017

2016

(1.0) (0.5) 0 1 1 2 2 3

Mulberry Burberry Ted Baker

OPERATING CASH CYCLE (DAYS)‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
OPERATING CASH CYCLE (DAYS) 2016 2017 2018
Ted Baker (25) 220 234 OPERATING CASH CYCLE RATIO
Burberry (100) (19) 21
Mulberry (109) 131 109 2018

2017

2016

(150) (100) (50) 0 50 100 150 200 250 300

Mulberry Burberry Ted Baker

 63
Solvency Ratios
GEARING RATIO %‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
GEARING RATIO % 2016 2017 2018
Ted Baker 24.9 21.0 17.6 GEARING RATIO
Burberry 0.0 0.0 0.0
Mulberry 0.0 1.6 2.2
2018

2017

2016

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Mulberry Burberry Ted Baker

DEBT RATIO‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
DEBT RATIO 2016 2017 2018
Ted Baker 0.5 0.5 0.5 DEBT RATIO
Burberry 0.3 0.4 0.4 0.6
Mulberry 0.3 0.3 0.3 0.5
Benchmark 0.5 0.5 0.5 0.4
0.3
0.2
0.1
0.0
2016 2017 2018

Ted Baker Burberry Mulberry Benchmark

 64
INTEREST COVER‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
INTEREST COVER 2016 2017 2018
Ted Baker 21.7 21.2 14.4 INTEREST COVER
Burberry 262.9 256.4 242.9
Mulberry 418.1 232.3 (19.3)
2018

2017

2016

‐100.0 0.0 100.0 200.0 300.0 400.0 500.0

Mulberry Burberry Ted Baker

Investment Ratios
DIVIDENDS PER SHARE %‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry

DIVIDENDS PER SHARE % 2016 2017 2018 DIVIDENDS PER SHARE  %

Ted Baker 48.8 55.4 61.4 70.0
Burberry 37.2 39.5 37.9 60.0
Mulberry 5.0 5.0 5.0 50.0
40.0
30.0
20.0
10.0
0.0
2016 2017 2018

Ted Baker Burberry Mulberry

 65
DIVIDEND YIELD %‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
DIVIDEND YIELD % 2016 2017 2018
Ted Baker 1.7 1.8 3.4 DIVIDEND YIELD RATIO %
Burberry 2.1 2.3 1.9 4.0
Mulberry 0.4 0.6 1.7 3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2016 2017 2018

Ted Baker Burberry Mulberry

DIVIDEND COVER‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
DIVIDEND COVER 2016 2017 2018
Ted Baker 2.1 2.1 1.5 DIVIDEND COVER RATIO
Burberry 1.7 1.7 2.0 2.5
Mulberry 1.7 1.7 1.6 2.0

1.5

1.0

0.5

0.0
2016 2017 2018

Ted Baker Burberry Mulberry

 66
DIVIDEND PAY‐OUT %‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
DIVIDEND PAY‐OUT % 2016 2017 2018
Ted Baker 46.7 46.6 67.2 DIVIDEND PAY‐OUT RATIO %
Burberry 57.2 57.7 50.5 80.0
Mulberry 59.5 60.5 61.2 70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
2016 2017 2018

Ted Baker Burberry Mulberry

EPS (GBX)‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
EPS (GBX) 2016 2017 2018
Ted Baker 104.5 119.0 91.5 EPS (GBX)
Burberry 65.1 68.4 75.2 140.0
Mulberry 8.4 8.3 8.2 120.0
100.0
80.0
60.0
40.0
20.0
0.0
2016 2017 2018

Ted Baker Burberry Mulberry

 67
PRICE EARNING RATIO‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
PRICE EARNING RATIO 2016 2017 2018
Ted Baker 19.8 25.5 26.9 PRICE EARNING RATIO
Burberry 23.8 25.0 26.6 140.0
Mulberry 132.3 94.9 36.5 120.0

100.0

80.0

60.0

40.0

20.0

0.0
2016 2017 2018

Ted Baker Burberry Mulberry

Altman's Z score‐ 2016‐2018 comparison of Ted Baker, Burberry and Mulberry
Altman's Z score 2016 2017 2018
Ted Baker 6.2 6.3 4.3 ALTMAN'S Z SCORE
Burberry 9.3 8.5 9.0 20.0
Mulberry 16.4 12.1 6.4
Safety margin 3.0 3.0 3.0 15.0
Bankruptcy margin 1.8 1.8 1.8
10.0

5.0
Year‐over‐year Growth = ((This 
0.0
Year – Last Year) / Last 
2016 2017 2018
Year)*100
2017‐2018 growth/loss (32%) Ted Baker Burberry Mulberry
Safety margin Bankruptcy margin
 Stores, Outlets and 
Countries where Ted Baker operates (Ted Baker)
68
Concessions combined, 
Country 2020
USA 96
Mexico 24
Canada 15
Panama 1
Thailand 3
Vietnam 1
Taiwan 7
China 11
Kazakhstan 1
Hong Kong 3
India 3
Japan 6
South Korea 4
Malaysia 7
Singapore 8
Indonesia 2
Australia 8
New Zealand 1
United Kingdom 199
Ireland 13
Italy 1
Kosovo 1
Malta 1
France 13
Spain 40
Portugal 3
Netherlands 16
Turkey 4
Belgium 1
Germany 27
Ukraine 3
Canary islands 1
UAE 10
Egypt 2
Kuwait 5
Bahrain 1
Qatar 4
Lebanon 5
Saudi Arabia 9
Azerbaijan 2