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Accounting and Financing in Organization

Evaluate the financial performance of ASOS plc using ratio analysis and prepare a report.

13 Pages1561 Words72 Views
   

Added on  2022-12-22

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This project discusses the accounting and financing aspects of ASOS Plc, including ratio calculations and interpretation of financial performance. Learn more about profitability ratios, efficiency ratios, and liquidity ratios.

Accounting and Financing in Organization

Evaluate the financial performance of ASOS plc using ratio analysis and prepare a report.

   Added on 2022-12-22

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ACCOUNTING AND
FINANCING IN
ORGANIZATION
Accounting and Financing in Organization_1
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Ratio calculation of ASOS Plc for the year 2019 and 2020........................................................1
Interpretation of Financial Performance of ASOS Plc on the basis of Ratio Calculation-.........7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Accounting and Financing in Organization_2
INTRODUCTION
This project is all about the company ASOS Plc that is a online retail provider in UK
and other in several other countries with product range of 85,000. Company is well-established
and has strong customer based. Accounting is very important function of organization it will
highlight efficiency and consistency and help in assessment. In this report company's ratio
analysis has highlighted and some measure that can help to make more profitability and
efficiency has also been discussed.
MAIN BODY
Ratio calculation of ASOS Plc for the year 2019 and 2020
Profitability Ratios-
(1)Return on Equity (ROE)- Amount in millions
Particulars Formula 2020 2019
Net Income 102.4 11.7
Shareholders equity 810.3 453.6
ROE (Net income/shareholders equity)*100 12.64% 2.58%
ROC
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
2019
2020
1
Accounting and Financing in Organization_3
(2)Gross Profit (GP)- Amt. In Million
Particulars Formula 2020 2019
Net sales 3263.5 2733.5
Gross profit 1547.4 1334.3
GP ratio (gross profit/sales)*100 47.42% 48.81%
GP ratio
0.47
0.47
0.48
0.48
0.49
0.49
2019
2020
(3)Net Profit (NP)- Amount in millions.
Particulars Formula 2020 2019
Net profit 102.4 11.7
Sales 3263.5 2733.5
NPR (net profit/sales)*100 3.14% 0.43%
2
Accounting and Financing in Organization_4

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