Analysis of Financial Performance

Running head: ANALYSIS OF FINANCIAL PERFORMANCE
ANALYSIS OF FINANCIAL PERFORMANCE
Name of the Student
Name of the University
Author Note

1ANALYSIS OF FINANCIAL PERFORMANCE
Executive Summary
The purpose of this project is to analyse the financial planning of a company. The report
clearly explains the various tools of the financial planning and discusses why financial
planning is required. A clothing company has been selected in this report, it’s competitive,
industrial, and financial analysis has been done. The various liquidity, profitability and
efficiency ratios has been calculated for the Ted Baker Company. The working capital ratios
has also been calculated and the capital structure and the stock market performance of the
company has been analysed. The report is concluded by clearly discussing about the financial
position of the company that is by explaining the liquidity, profitability and the solvency
position of the company.

2ANALYSIS OF FINANCIAL PERFORMANCE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Competitor Analysis...............................................................................................................3
Industry Analysis...................................................................................................................4
Financial Analysis..................................................................................................................4
Ratio analysis.....................................................................................................................5
Working capital management............................................................................................9
Capital structure...............................................................................................................10
Stock performance analysis..............................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................14
Appendix..................................................................................................................................17

3ANALYSIS OF FINANCIAL PERFORMANCE
Introduction
Financial planning is a very broad term and includes several activities starting form assessing
the business environment to identifying the risks and eliminating them (Baker and Ricciardi
2014). It aims understanding the financial as well as the market position of the organisation
and taking decisions accordingly. The basic objective of financial planning is to determine
the capital requirement or the capital structure of the companies. It includes setting up of
financial policies regarding credit control, cash control, lending and borrowings (Morris and
Daley 2017). This involves determination of balance sheets, calculating the financial stability
by calculation of different types of ratios, determining the working capital management
structure, the capital structure and the companies’ performance in the stock market. The basic
objective of financial planning is to determine the capital requirement or the capital structure
of the companies. It includes setting up of financial policies regarding credit control, cash
control, lending and borrowings. This planning helps in the optimum utilisation of the funds
and the available resources to reach the company objectives very smoothly (Morris and Daley
2017). The financial planning involves determination of balance sheets, calculating the
financial stability by calculation of different types of ratios, determining the working capital
management structure, the capital structure and the companies’ performance in the stock
market.
Discussion
In the given report financial analysis of Ted Baker has been done. Ted baker is a UK
based company, which specialises in luxury clothing. The company was founded by Ray
Kelvin in the year 1988. The company originated at Glasgow. Ted Baker has a diversified
clothing product that includes clothes for men, women and kids. It has several standalone
streets in the UK and the business operates in many other areas like the United States,