Financial Analysis of Hotel Chocolat Annual Reports 2019-2021

Task One: Calculate 2 ratios from each category of ratios and evaluate the performance of Hotel Chocolat

Task One As a Financial Analyst and using the Annual Report and Accounts of Hotel Chocolat for the period 2019, 2020 and 2021, you are required to evaluate the performance of the company across all categories of ratios.  The report and annual accounts for these years are available at the following link: https://www.hotelchocolat.com/uk/investor-relations-results-and-reports.html You are required to calculate 2 ratios from each category of ratios and show clearly how you have calculated the ratio. (25%) Task Two Based on your calculations, you are now required to comment on the performance of the company by summarising the findings of the ratios you have calculated in Task 1 above.  You should summarise your findings and make particular reference to the interests of the different stakeholders of the company. Note: Any accounting ratios must be calculated (and workings shown) and not extracted from external databases. (25%) Task Three As a Financial Analyst and considering your response above, you are required to provide advice on what you think should be done in order to improve the performance of each category of ratios. (15%) Task Four Now consider yourself as a Financial Analyst analysing the Operational Review on page 18 of the latest annual report.  The Operational Review mentions 6 statements of what the company is doing or has done. You are required to comment on which ratios each of these statements would impact.  For example, the first statement talks about an increase in investment in people and technology.  Which ratio would this impact and how? (15%) Task Five Now consider page 24, Risk and Potential Impact.  There are 5 potential risks that are mentioned.  You are required to comment on one ratio that each of these potential risks may impact and why? Further Information: Learning Outcomes specifically assessed: Subject Specific Knowledge and Skills Identify and critically appraise the different components of a financial report, and assess the adequacy of current international financial reporting requirements for a greater understanding of company performance Analyse and interpret financial data and information, evaluate their relevance and validity, and synthesise a range of information in the context of business situations Demonstrate the ability to use conventional management accounting and financial management techniques to produce appropriate information for management to aid planning, control and decision making Evaluate the usefulness of contemporary management accounting techniques in measuring business performance Critically appraise management accounting techniques with respect to their effectiveness and identify any weaknesses inherent in their use