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The following table presents the financial summary of a major international company.

After analysis the analyst made following assertions: The companys efficiency deteriorated The companys liquidity improved The companys solvency deteriorated The companys profitability deteriorated

Required: Verify analyst claims while supporting your answers with relevant calculations Comment on overall financial performance of the company .

FY10 FY11 FY12 FY13 FY14 GBP GBP GBP m GBP GBP m 4,390 844 3,624 700 3,717 704 8,167 933 11,366 1,579 -163 -188 -579 -186 -94 Financial statements Income statements Revenue Profit before interest and taxation (EBIT) Net interest payable Taxation Minorities Profit for the year Balance sheets Fixed assets Current asset investments, cash at bank and in hand Other current assets Total assets Interest bearing debt (long term) -195 -99 352 -98 -208 -105 293 -125 -167 645 296 11.483 3,510 316 3,667 4.758 10431 218 290 561 558 514 613 1,258 1,634 4,399 5,691 12,250 13,799 -602 -1,053 -1.535 -3523 -3,707 -1,223 -1,054 -1,102 -2,377 -3,108 Other creditors and provisions (current) Total liabilities Net assets Shareholders' funds Equity minority interests Capital employed Cash flow Working capital movements Net cash inflow from operating activities -1,825 -2.107 -2,637 -5,900 2,559 2,292 3,054 6,350 2.161 2,006 2.309 5.572 398 286 745 778 2.559 2,292 3,054 6,350 -6,815 6,984 6,165 819 6,984 71 5 859 85 1.568 107 2.292 864 975

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