In order to guide you to understand about this specific company, I have used the Annual Review by following some steps: 1) To summarize the size, the structure and the profit of the company I have first check the balance sheet and the profit and loss accounts. 2) I have read very carefully the chairman's statement and the director's report, which helped me to understand better things about the company. 3) I have also calculated the trends and ratios. The performance data, P&L A/C, Balance Sheet, Ratios and Trends were obtained from the following sources: - Annual Review of National Grid Group of 1997-98. - Articles

Earnings per share (EPS) indicate the amount of profit after tax, interest and preference shares earned for each ordinary share. It is also more reliable for comparing the performance of any company because it can not be affected by the policy of the directors. Profit after tax + interest EPS = No. Of Ordinary shares the earnings per share of National Grid Group, excluding the exceptional profit relating to Energis, were 19.8 pence, compared with 24.3 pence in 1996/97. This reduction resulted from lower transmission profits following the implementation of the new price control.

significant proportion of its capital. It can be defined like this: Long - Term Debt Gearing Ratio = Shareholder Fund ?804(million) The Gearing Ratio for 1997 was: = 57.8% ?1388.9(million) ?1320.5(million) The Gearing Ratio for 1998 is: = 148.6% ?888.6(million) The National Grid Group Plc Company may it has loss in 1998 because they have given more total dividend to their shareholders than 1997, and that's why they have retained loss in 1998 (?516.3 million), instead the Company used to have Profit on Ordinary activities after taxation (?441.3 million) so the shareholders funds had been reduced from ?1388.9 million in 1997 to ?888.6 million in 1998. But from the other side of view Creditors (amounts following due after more than one year) have been increased in 1998 to $1320.5 million from ?804 million in 1997. Because of this all the above exist this high Gearing Ratios to that Company so the managers must take in to consideration this phenomenon.

As far as I am concerned, I truly believe that the National Grid Group Plc Company must take into consideration some factors that may help them in order to improve their company as a hall or to increase their profit and minimize their expenses. First of all they must find ways in order to increase the Return on Shareholder funds. For example minimize the cost by integrating and enforcing a Computerize new Company. In other words to have a consistently high rate of return on shareholders' equity. Second they must have an above-average record of earning per share. In 1997 for the Company it was ?24.3 pence and 1998 has increased to ?26.1 pence. Next they must have a strong level of retained earnings. So the company must reduce the dividends to the minimum in order to have more retained earnings and no losses, and then they will increase their shareholders funds and to reduce the current and long turn liabilities. The Profit Margin of the Company in 1998 is: (PBIT / SALES = 40%). So this is a nice thing for the Company, but because they own a lot of money in Debts (Long Turn), they pay a lot of interest so it minimizes at the end of the day the Retained Profit. That's why they have to increase the at least the Profit Margin. About the Cash flow, because of the decreasing rate of profits of the year 1998, the Net Cash Inflow has been decreased (increases the Cash Outflow) because of the interest of the increased and Dividend paid. As well as, they have to decrease the Current Liabilities and to increase the Current Assets. Also to decrease the Gearing Ratio, (decrease the Long Turn Liabilities).

Dividend Cover compares net profit with dividends to show how many times over the dividends could be paid and how safe this annual yield is. With other words, the dividend cover shows how many times

A dividend covered by earnings after tax profit. Earnings per share Dividend Cover = Net dividend per share The recommenced final divided of 7.24 pence net per ordinary share, with the interim dividend of 4,83

Some common words found in the essay are:
Current Ratio, Dividend Yield, Grid Plc, Dividend Cover, Cash Flow, Annual Review, Ratio PE, EFFICIENCY Investment, Corporation Zambia, EFFICIENCY ROCE, current assets, current liabilities, national grid, current ratio, national grid plc, grid plc, annual review, ratio 1997, ratio =, 1997 =, ratio 1997 =, current assets current, ratio 1998 =, profit tax, grid plc company,
Approximate Word count = 2390
Approximate Pages = 10 (250 words per page double spaced)