Financial Analysis PA Report

This study is based on the International Financial Reporting Standards and to choose Tim Horton Inc. (known internationally as Tim Horton Cafe) as analysis target. Our team has explored the company’s information resources to learn the background and organization structure of Tim Horton. A review of the company’s historical financial ratio from financial statements and the compare with its major competitors-Cataracts and Dunking’ Donuts lead us to a greater understanding of the firm liquidity, solvency, cash conversion and profitability.

From aspect of marketing and management view, we also conducted a Product Life Cycle Analysis, a BBC Matrix analytical method and a SOOT analysis to determine the strengths and weaknesses of Tim Horton. Moreover, the company future strategy and some suggestions will be presented at the end of report. Therefore, this report takes in various analysis of the Tim Horton Inc. Include financial analysis, management analysis and strategic plan in order to let reader understand how to make more reasonable decision about investment in the stock of Tim Horton.

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As the result of this analysis report, it is rational to buy the stock of Tim Horton which possesses a reasonable valuation level and notable return on equity. 1 . Company Analysis Corporate Profile Tim Horton is the one of the largest publicly-traded quick service restaurant Hahn in North America measured by market capitalization and the largest in Canada based on system wide sales and number of locations. Originally Tim Horton offered only coffee and donuts to its customers but has greatly expanded today to offer a full lunch menu as well along with many more baked goods.

The biggest attraction to Tim Horton is still their always fresh coffee, it is also offered in a take-home tin so customers can enjoy the great taste of Tim Horton’ coffee at home. The Tim Horror’s chain was founded in 1964 in Hamilton, Ontario, Canada. Over the past 50 years, Tim Horton has lilt a highly successful business, with an impressive track record of results. The Company’s expanded product offerings and new-store development efforts have helped to make Tim Horton an iconic brand.

At the end of 201 3, Tim Horton has 4,485 system wide restaurants, including 3,588 in Canada, 859 in the United States and 38 in the Persian Gulf region. And now, it is starting to seed international growth and develop its business in some emerging market, such as China and India. Organizational Structure With the head office in Saukville, Ontario and numerous regional offices across Canada and in the U. S. , Tim Horton offers support to its Restaurant Owners from coast to coast. Across North America, Tim Horton Inc. Employs more than 1 ,800 people in various functional areas.

To achieve success and excellence, our corporate team is made up of specialists in all areas of our business including, but not limited to: Operations, Research & Development, Training, Real Estate, Construction, Finance, Human Resources, IT, Legal, Franchising, Purchasing, and Marketing. In August 201 2, Tim Horton announced a new organizational structure to position the company for future Roth. The new structure includes a strong Corporate Centre and new Business Unit design, with accountability for all operating businesses including Canada, ASSAI, and International.

The new structure facilitates strategy execution and decision-making across operating businesses. As a Listed Company Tim Horror’s completed an initial public offering of the company in March 2006 and was fully spun off as a separate company as of September 29, 2006. Tim Horror’s trades on the NYSE and TTS (HTH). Since the Initial Public Offering, Tim Horton added more than 1,000 restaurants and grew analyzed total revenues by approximately $900 million, while also entering new markets.

The company expects the new structure to further enable strategic execution as it continues to grow the business across all markets, to streamline decision-making, and to improve efficiencies. On 26 August 2014, Burger King agreed to purchase Tim Horton for LOS$11. 4 billion; the combined company, which will be majority-owned by Brazilian investment firm G capital and remain based in Saukville, will be the third-largest operator of fast food restaurants in the world. 2. Financial Ratio Analysis An isolated statistic has little value.

Hence, a profit figure of 1 00 million is meaningless unless we relate it to the company’s sales revenue or the value of its assets or some other data like that. Financial ratios attempt to express the relationship among selected items of financial statement data, therefore, they allow the analysts to get a better view of the firm’s financial health than just looking at the raw financial statements. To conduct the financial ratio analysis for Tim Horton Inc. And to better understand the company’s competence in the coffee industry, we also select other two leading nannies, Cataracts and Dunking’ Donuts.