JLR is the UK based company that is known for manufacturing cars across the globe. Ratio analysis of the firm is done in the report and comments are made on the company performance. Apart from this, investment that a company is making in its business is also described in detail. At the end, conclusion section is prepared and it is concluded that is able to make heavy investment in its business for long term.
• ROCE: ROCE percentage reduced from 6.2% to -2.2%, which is reflecting that firm is generating less return for the investors in its business. This happened due to decline in the demand of cars in the markets where Jaguar is operating at large scale (Rey and Santelli, 2017). Currently, the firm is making heavy investment on innovation of technology and this is also another reason behind higher decline in ROCE.
• Operating percentage: Operating profit ratio also observed decline in the profit percentage from 3% to -1%. Earlier also the operating profit percentage was very small and in 2019 it becomes negative. Low control of expenses is the major reason behind the low OP percentage (Hawaldar and et.al., 2017). Further, the cost of car manufacturing is also high and due to this reason also OP percentage become negative in the business.
In the present time period JLR Place is giving very poor performance in its business. However, considering the overall scenario, it can be said that firm will be able to make a good long term investment in its business. Jaguar E-Pace and Jaguar I-Pace models demand elevate in the fourth quarter of the year 2019. In the UK and North America markets where the company operates on large scale observe growth rate of 8% which is higher than industry. So, higher growth rate above industry is sign that company products are in demand and firm in upcoming years will make long term investment on innovation of technology.
Books and journals
Alshatti, A. S., 2015. The effect of credit risk management on financial performance of the Jordanian commercial banks. Investment Management and Financial Innovations. 12(1). 338-345.
Hawaldar, I. T. and et.al., 2017. A comparison of financial performance of Islamic and conventional banks in Bahrain. American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS). 33(1). 100-110.
Ravichandran, M. and Subramanian, M. V., 2016. A Study on Financial Performance Analysis of Force Motors Limited. International Journal for Innovative Research in Science & Technology. 2(11). 662-666.
Rey, A. and Santelli, F., 2017. The relationship between financial ratios and sporting performance in italy’s serie A. International Journal of Business and Management. 12(12). 53-63.
Jack., S., 2019. [Online]. Jagaur Land Rover announces electric car investment. Available through:< https://www.bbc.com/news/business-48875406>
Jaguar Land Rover Automotive PLC., 2019. [Online]. Available through:< http://annualreport2019.jaguarlandrover.com/>.