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Interpret Financial Statements for the Green Garden Company

See attached file.

Interpret the financial statements using appropirate ratios and comparisons, both internal and external.

Written as a word doc - calculations in Excel please.


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See attached file.

Return on capital employed denotes the amount earnings earned for each pound of capital employed. Return on capital employed of TGGC for the year 2009 is 8% and for the year 2010 it is 10.3% which indicates that the return on capital shows the increasing trend. Return on capital employed of industry average is 9.4 % in the year 2009 and 9.6% in the year 2010. This indicates that TGGC is efficient in management as it generates more amounts of earnings from its capital employed than its competitors. Shareholders are interested in this ratio as it will show the amount of return. TGGC is considering expansion programme and therefore when there is fresh issue of shares, the present shareholders and the potential investors would be interested in the subscription of new shares. Even managers and employees will decide to continue in the ...

Solution Summary

The expert interprets financial statements for the Green Garden Company.