This report will be concerned with comprehensively analyzing the financial performance of Barclays Bank. The main areas of focus of the report will be on the Return on capital employed (ROCE), current ratio figures and gearing ratio figures of the company for the last three financial years of 2009, 2008 and 2007. The first section of the report will be concerned with providing the analysis of the company based on these three ratios. The next section will be concerned with forecasting the future performance of the company based on the analysis carried out beforehand. Thereafter, there will be an analysis of Barclay's share performance.
[...] It can be safely said that the company ought to become more profitable in the future as expectations of its future earning potential will rise. In the light of this, the share price of the company is also bound to rise on the whole. Currently, the company's share price has been rather erratic on the whole, especially when compared to 2007 in general. However, there are some positives which can be taken from this in regards to Barclay's P/E ratio and earnings per share. This should have a stabilizing effect on the company's share price in future. Bibliography Barclays [...]
[...] In regards to the ROCE figure of Barclay's, it can be seen that 2007 was its best year in this regard where the figure was indicating that the company was generating substantial income for its share holders. This figure fell to 26% in 2008 and then improved to 35% in 2009. It has been deduced that the main reason for this fluctuation emanates from the current liability figures of the company. It is clear that in 2007, when the ROCE figure was at its best, the current liability of the company was at its lowest out of all the 3 years. [...]
[...] This is bound to improve the company's financial position and performance in general. As a result of this, the company's profile in the eyes of potential investors within the capital markets would improve in regards to expectations of future earnings. The effect of this is that the company's share price would rise (Atrill 2006, p 44). With the progression which the company has been able to make over the last 3 years in terms of its current ratio, it is quite likely that the company will be able to pay its current liabilities in a timely manner. [...]
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