Ratio Analysis Caffe Nero

Ratio Analysis

A tool used to conduct a quantitative analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry to judge the performance of the company.

Financial performance based on may 2006 interim report

Caffи Nero Group plc, the leading independent UK coffee house operator of 282stores, which has been voted the top rated brand by consumers for the last six consecutive years. It had another year of solid progress, again achieving revenue and profit growth.

Its revenue gone up by 29% to Ј90.7 million where as in year 2005 it was Ј70.1 million. Earning before interest, tax , depreciation and amortization has increased by 38% to Ј15.6 million where as it as Ј11.3million in year 2005. Operating profit (before prior year goodwill write off) improved by 38% to Ј8.2 million where as in year 2005 it was Ј6.0 million). Over all Operating profit improved by 74% to Ј8.2m from Ј4.7million in 2005.

Pre-tax profit has improved by 92% to Ј7.3m where as in year 2005 it was Ј3.8 million

Earning per share grew by 25% to 6.60p where as in year 2005 it was 5.26p. Its present