Accounting & Financial Managements

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Accounting & Financial Management

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Executive summary
The report has been prepared in the context of BAP and KMD and in that it is identified that
KMD is a competitor of BAP and on that basis, the evaluation is made. There is the
calculation of ratios that are made and with that various areas have been analyzed. There is
the consideration of capital structure, liquidity and asset efficiency management. The need for
improvement in identified in all of the areas. The position of BAP is weak then that of KMD
and for that debt position will be considered. The assets will be required to be used by the
management in a more effective manner so that the revenue can be made more profitable.
There is the profitability consideration and in that the expenses are higher in BAP which
makes the profitability lower. The interest expense will be reduced and for that debt will be
avoided. The shareholders are provided with the adequate returns and they will be satisfied
with the returns. There is the consideration of the capital expenditures and all of them will be
beneficial in long terms for the companies.

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Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................4
Objectives and long term plans..................................................................................................4
Financial ratios...........................................................................................................................5
Liquidity, Capital structure and asset management efficiency..................................................6
Operating profitability................................................................................................................8
Returns on shareholders’ investment.........................................................................................9
Capital expenditures.................................................................................................................10
Conclusion and recommendations...........................................................................................11
References................................................................................................................................13
Appendix..................................................................................................................................15

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Introduction
In the business, there are various areas that are involved and in that the evaluation is required
to be made so that the current position and performance of the company can be evaluated.
This is required to be with the help of suitable methods and approaches which are available.
The ratio analysis is one of the best techniques and the sane will be used in the given case.
There will be an evaluation of the two companies under this and they include Kathmandu
holdings limited and Bapcor. There will be consideration of the annual report of both the
companies and from that the relevant information will be used. The calculation will be made
and that will be used to make the comparison among both the companies. This will help in
identifying the areas in which improvement is required and then the decision by the
management will be undertaken to make the complete situation better. The overall results will
be enhanced and there will be the attainment of goals. The discussion in this respect will be
carried in the report for better understanding.
Objectives and long term plans
The companies in the market operate with the aim to make the profits and attain the best
position among all the competitors. By this, long-term sustainability is ensured and that is the
main aim of any business. The Kathmandu holdings have been considered and the main aim
of the business has been determined which is to inspire and incorporate the adventure in all
the people. The objective of the company is to perform the operations in such a manner that
diversity can be attained among all the generations and genders (KMD, 2019). The strategic
objective which is involved with the company is to increase the value for all the shareholders.
In the company, there is a five-year plan which is formulated in respect of sustainability. The
main long-term plan of the business is in relation to the creation of the sustainability plan.