Barratt And Persimmon Ratio Analysis

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The ratio analysis of both companies has shown that both Barratt and Persimmon operated well in 2013 and 2014. The companies demonstrated an upward trend in all their growth and profitability ratios despite the fact that the UK housebuilding industry faced some problems such as high prices, lack of available land, material and labour. EPS grew substantially both for Barratt and Persimmon, however, Persimmon EPS is almost 4 times higher than Barratt EPS. Both companies used their current assets in an efficient way but in terms of net profit growth Barratt was more efficient than Persimmon. Positive trends for both companies during the previous period, renewed consumer confidence and more accessible mortgage finance allow to forecast future growth

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