ABSTRACT
The financial analyst of 1894 could no doubt have commented that the new company was being floated on a P/E ratio of 9.4 and that the preference dividend was covered nearly four times. The new company was incorporated on 21 st June 1894 and made up its first accounts to 31st December, 1894. The largest single asset in the balance sheet at 31st December, 1914, amounting to nearly dollar 10 million, is described as 'Debentures, shares and loans to, less deposits of, associated companies and investments'. In 1914, a group comprising parent and subsidiaries in constitution so well known today, was unusual. The wheel has now turned again and with SSAPI 'branching' has become required practice for profits and losses attributable to significant holdings in associated companies. The profit and loss account shows the amounts charged for repairs, renewals and alterations; for depreciation and as the appropriation to the insurance reserve.
