Financial Management in Engineering.

                                PDE 4232

FINANCIAL MANAGEMENT IN ENGINEERING

       CW2: INDIVIDUAL COURSEWORK

                               2018/19

               CASE STUDY REPORT

                                FOR

        HOMAGE ENGINEERING PLC 

Total Word Count: 2300

Table of Contents

List of Tables        5

INTRODUCTION        5

Option 1: DISCOUNTED CASH FLOW TECHNIQUES        6

a)        CURRENT RATIO        9

b)        QUICK RATIO        10

ii)        PROFITABILITY RATIOS        12

a)        NET PROFIT MARGIN        12

b)        RETURN ON CAPITAL EMPLOYED        13

iv)        FINANCING RATIO        16

a)        GEARING RATIO        16

∙        Analyse strength and weakness of both companies        18

CONCLUSION        18

BIBLIOGRAPHY        18

APPENDIX        23

List of Figures

Figure 8. Current ratios        10

Figure 9. Quick Ratios        11

Figure 12.  Return On Capital Employed        14

Figure 13. Gearing ratio        17

List of Tables

Table 7. Current ratio        10

Table 8. Quick Ratio        11

Table 10. Net Profit Margin        12

Table 11. Return OnCapital        13

Table 12. Gearing ratio        17

Table 16. Financial Ratio Statement        24

                                              INTRODUCTION

     The entire case study is related to Homage Engineering plc and comprises of a comprehensive analysis of investment options to be considered using discounted cash flow techniques and ratio analysis. The aim of this report is to justify and recommend the appropriate option for the company with reasons based on the information provided for both investment options suggested by the company directors.