MARK AND SPENCER RATIO ANALYSIS

(as at 3
Liquidity Ratio
2014 2015 2016
Total Current Assets…(A) 1368.50 1455.00 1461.40
Total Current Liability (B) 2349.30 2111.60 2104.80
Liquid Assets: (C/A - Debtors) (C) 1059.00 1133.20 1140.30
Current Ratio (A/B) 0.58 0.69 0.69
Quick Ratio (C/B) 0.45 0.54 0.54

(as at 3
Solvency Ratio
2014 2015 2016
Total Equity Capital (D) 2707.30 3199.60 3445.20
Total Assets (E) 7903.00 8196.10 8476.40
Operating Profit / Loss (F) 741.90 762.50 784.90
Interest Expenses (G) 139.10 116.80 116.40
Total Long Term Borrowings (H) 1655.10 1745.90 1774.70
Interest Coverage Ratio (F/G) 5.33 6.53 6.74
Debt- Equity Ratio (H/D) 0.61 0.55 0.52
Proprietory Ratio (D/E) 0.34 0.39 0.41

(as at 3
Activity Ratio
2014 2015 2016
Revenue (I) 10309.70 10311.40 10555.40
Trade Receivable (J) 309.50 321.80 321.10
Creditors (M) 1692.80 1642.40 1617.70
Cost of Sales (Q) 6439.00 6325.90 6427.00
Inventory (R ) 845.50 797.80 799.90
Trade Receivable Turnover Ratio (K= I/J) 33.31 32.04 32.87
Trade Receivable Turnover Period (L = 365/K) 10.96 11.39 11.10
Trade Payable Turnover Ratio (N= I/M) 6.09 6.28 6.52
Trade Payable Turnover Period (P = 365/N) 59.93 58.14 55.94
Inventory Turnover Ratio (S= Q/R) 7.62 7.93 8.03
Inventory Turnover Period (T = 365/S) 47.93 46.03 45.43

(as at 3
Profitability Ratio
2014 2015 2016
Gross Profit (U) 3870.70 3985.50 4128.40
Net Profit (V) 506.00 481.70 404.40
Revenue (W) 10309.70 10311.40 10555.40
Gross Profit Margin (U/W * 100) (In %) 37.54 38.65 39.11
Net Profit after Tax Margin (V/W * 100) ( %) 4.91 4.67 3.83
Assets (X) 7903.00 8196.10 8476.40
Equity Capital (Y) 2706.70 3198.80 3443.40
Net Operating Profit (Z) 694.50 701.30 584.10
Equity Capital + Non-Current Liabilty (AA) 5553.70 6084.50 6371.60
Return on Assets (V/X* 100) (In %) 6.40 5.88 4.77
Return on Equity (V/Y* 100) (In %) 18.69 15.06 11.74
Return on Capital Employed (Z/AA * 100) (%) 12.51 11.53 9.17

Assumption: Net Operating Profit is taken as net of Operating Profit after substracting Non Operating Expenses.
IS

(as at 31st Mar)

2017 2018
1723.30 1317.90
2368.00 1826.00
1404.70 1009.50
0.73 0.72
0.59 0.55

(as at 31st Mar)

2017 2018
3156.30 2956.70
8292.50 7550.20
690.60 670.60
113.00 113.80
1711.70 1670.60
6.11 5.89
0.54 0.57
0.38 0.39

(as at 31st Mar)

2017 2018
10622.00 10698.20
318.60 308.40
1553.80 1405.90
6534.20 6650.90
758.50 781.00
33.34 34.69
10.95 10.52
6.84 7.61
53.39 47.97
8.61 8.52
42.37 42.86

(as at 31st Mar)

2017 2018
4087.80 4047.30
115.70 29.10
10622.00 10698.20
 38.48 37.83
1.09 0.27
8292.50 7550.20
3150.40 2954.20
253.20 156.50
5924.50 5724.20
1.40 0.39
3.67 0.99
4.27 2.73

g Non Operating Expenses.

MARK AND SPENCER INCOME STATEMENT
Fiscal year ends in March. Euro in millions except per share data. 2014 2015
Revenue 10309.70 10311.40
Cost of revenue (6439.00) (6325.90)
Gross profit 3870.70 3985.50
Operating expenses
Selling and Administrative Expenses (3224.30) (3304.80)
Other Income / (Expenses) 95.50 81.80
Operating income 741.90 762.50
Non Operating Expenses (47.40) (61.20)
Investment Income - Finance income 25.00 15.50
Financing Cost (139.10) (116.80)
Profit / (Loss) before taxation 580.40 600.00
Income Tax (expense) / Credit (74.40) (118.30)
(Loss)/profit for the financial year from continuing operations 506.00 481.70
(Loss)/profit for the financial year from discontinued operations
(Loss)/profit for the financial year 506.00 481.70
Non- controlling Interests (18.80) (4.80)
Net income available to common shareholders 524.80 486.50
Earnings per share
Basic 32.5p 29.7p
Diluted 32.5p 29.5p
Dividend per share
Basic 18.0p 18.0p
Weighted average shares outstanding
Basic 1615.00 1635.60

MARK AND SPENCER BALANCE SHEET

Fiscal year ends in March. Euro in millions except per share data. 2014 2015

Current assets
Inventory 845.50 797.80
Other Financial Assets 17.70 11.60
Trade and other receivables 309.50 321.80
Derivative finanicial instruments 13.70 117.90
Cash and cash equivalents 182.10 205.90
Total current assets 1368.50 1455.00

Non-current assets
Intangible Assets 808.40 858.20
Property, plant and equipment 5139.90 5031.10
Investment Property 15.70 15.60
Investments in joint ventures 12.70 12.20
Other financial assets 3.00 3.00
Retirement benefit asset 200.70 460.70
Trade and other receivables 313.50 283.30
Derivative finanicial instruments 40.60 75.80
Deferred tax assets 0.00 1.20
Total non-current assets 6534.50 6741.10

Total assets 7903.00 8196.10

Current liabilities
Trade and other payables 1692.80 1642.40
Partnership liability to the Marks & Spencer UK Pension Scheme 71.90 71.90
Borrowings and other financial liabilities 448.70 279.40
Derivative financial instruments 51.50 7.70
Provisions 44.80 46.20
Taxation liabilities 39.60 64.00
Total current liabilities 2349.30 2111.60

Non-current liabilities
Retirement benefit deficit 11.70 11.70
Trade and other payables 334.00 319.70
Partnership liability to the Marks & Spencer UK Pension Scheme 496.80 441.00
Borrowings and other financial liabilities 1655.10 1745.90
Derivative financial instruments 75.40 20.00
Provisions 31.40 32.10
Deferred tax liabilities 242.60 315.30
Total non-current liabilities 2847.00 2885.70

Stockholders' equity
Issued share capital 408.10 412.00
Share premium account 355.50 392.40
Capital redemption reserve 2202.60 2202.60
Hedging reserve (41.80) 64.30
Other reserve (6542.20) (6542.20)
Retained earnings 6325.10 6670.50
Total stockholders' equity 2707.30 3199.60
Non-controlling interests in equity (0.60) (0.80)
Total equity 2706.70 3198.80

Total liabilities and stockholders' equity 7903.00 8196.10

Source: https://corporate.marksandspencer.com/investors/reports-results-and-presentations
 £m
2016 2017 2018
10555.40 10622.00 10698.20
(6427.00) (6534.20) (6650.90)
4128.40 4087.80 4047.30

(3412.90) (3460.40) (3426.20)

69.40 63.20 49.50
784.90 690.60 670.60
(200.80) (437.40) (514.10)
21.10 36.20 24.10
(116.40) (113.00) (113.80)
488.80 176.40 66.80
(84.40) (60.70) (37.70)
404.40 115.70 29.10

404.40 115.70 29.10

(2.50) (1.40) 3.40
406.90 117.10 25.70

24.9p 7.2p 1.6p

24.8p 7.2p 1.6p

18.7p 18.7p 18.7p

1635.90 1623.10 1624.00

£m
2016 2017 2018

799.90 758.50 781.00

19.10 14.50 13.70
321.10 318.60 308.40
73.70 163.10 7.10
247.60 468.60 207.70
1461.40 1723.30 1317.90

802.80 709.00 599.20

5027.10 4837.80 4393.90
15.50 15.50 15.50
6.90 7.00 7.00
3.00 3.00 9.90
851.00 706.00 970.70
234.70 234.10 209.00
74.00 56.80 27.10
0.00 0.00 0.00
7015.00 6569.20 6232.30

8476.40 8292.50 7550.20

1617.70 1553.80 1405.90

71.90 71.90 71.90
297.50 518.00 125.60
28.50 10.50 73.80
14.00 147.20 98.80
75.20 66.60 50.00
2104.80 2368.00 1826.00

26.90 13.20 22.50

353.00 328.50 333.80
383.80 324.60 263.60
1774.70 1711.70 1670.60
0.20 0.80 30.70
52.00 113.50 193.10
337.60 281.80 255.70
2928.20 2774.10 2770.00

405.80 406.20 406.20

411.30 416.40 416.40
2210.50 2210.50 2210.50
32.30 17.30 (65.30)
(6542.20) (6542.20) (6542.20)
6927.50 6648.10 6531.10
3445.20 3156.30 2956.70
(1.80) (5.90) (2.50)
3443.40 3150.40 2954.20

8476.40 8292.50 7550.20

 MARK AND SPENCER PROSPECTIVE P/E RATIO ANALYSIS

(as at 3
Price-Earning Ratio
2014 2015 2016
Market Value per Share …(A) 451.50 535.00 406.20
Weighted avg no of shares in issue (B) 1615.00 1635.60 1635.90
Net income available to common shareholders (C ) 524.80 486.50 406.90
Earning Per Share (D) = (C/B) In 'p' 32.5 29.7 24.9
Price to Earning Ratio (A/D) 13.89 17.99 16.33

Assumptions
1). Since the Balance sheet is prepared as on 31st March of every year, so the Price of Equity Share is taken as on 31st Mar

(as at 3
Prospective Price-Earning Ratio
2014 2015 2016
Earning Per Share …(A) In 'p' 32.50 29.74 24.87
Price to Earning Ratio …(B) 13.89 17.99 16.33
EPS Growth Rate (Basic) …(C ) In '%' 11.30 (8.47) (16.38)
EPS Growth Rate (Normalised) …(D) In '%' -1.87 2.78 2.94
Prospective Price-Earning Ratio (Basic) …(B/C) 1.2 -2.1 -1.0
Prospective Price-Earning Ratio (Normalised)…(B/D) (7.43) 6.47 5.55

Assumptions
1). EPS Growth Rate (Basic) for the FY 2013-14 is calculated using the EPS data from the Financial Statement of FY 2012-13
2). EPS Growth Rate (Normalised) is calculated after adjusting the earnings (Operating Profit) of the company to remove th
ANALYSIS

(as at 31st Mar)

2017 2018
337.00 270.20
1623.10 1624.00
117.10 25.70
7.2 1.6
46.71 170.74

are is taken as on 31st March of every year.

(as at 31st Mar)

2017 2018
7.21 1.58
46.71 170.74
(70.99) (78.07)
-12.01 -2.90
-0.7 -2.2
(3.89) (58.88)

al Statement of FY 2012-13.
the company to remove the effects of extra-ordinary/unusual/one-time influences.
756 741.9 762.50 784.9 690.6 670.6
-1.87 2.78 2.94 -12.01 -2.90
Average -2.21