CARILLION PLC
BUSINESS FINANCE
Introduction
Many companies forecast sales for they’re next financial year as it helps them to give an idea of how well they are doing. This helps them to prepare in terms of how much stock, funds etc that they will need. In this report I have been given the job to analyse Carillion’s 2006 financial statements and forecast they’re financial statements for the 2007 year. I will do this by using the growth rate of sales and predicting the income statement and balance sheet. Then I will use appropriate ratios to analyse the company and discuss my findings.
Contents
Page 3- Growth Rate of Sales
Page 4- Profit and Loss Account
Page 5- Balance Sheet
Page 6- Report
Page 8- Appendix (ratios)
Page 9- Bibliography
Growth Rate of Sales
Calculating Growth Rate of Sales
The growth rate of sales can be calculated by using the formula:
g = the growth rate of sales
n = number of years
Here is a table showing the sales revenue for the last 5 years for Carillion plc:
Year Sales
2002 1,974.4m
2003 1,977.6m
2004 1,991.8m
2005 2,025m
2006 3,065m
g = 5 – 1 v 3065m - 1
1974.4m
g = 4 v 1.55237 – 1
...