Analysis of Financial Statement

ANALYSIS OF
FINANCIAL
STATEMENT

EXECUTIVE SUMMARY
The study summarises the financial performance of Gatsby Grange through computation
of different financial ratios to assess the actual financial status of corporation. This also contains
essentialness of comprehending ratios and any fluctuations in ratios with aim to analysing hotel
management. It further summarises key advantages and disadvantages of ratios with object to
understand their importance in decision making.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Task 1.....................................................................................................................................4
Task 2...................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
It is essential for business entities to do proper analysis of financial statement so that
managers can take suitable action for different types of decisions (Kopanja, Tadić and
Žunić,2018). The analysis of financial statements can be done by help of range of techniques
such as ratio analysis. The project report is based on financial analysis of Gatsby Grange
company which is a part of small chain of Boutique in UK. The report covers detailed
information about different kinds of ratios, role of this technique for business entities.
MAIN BODY
Task 1
(a) Calculation and analysis of financial information on the basis of ratio analysis.
Profitability ratio- It is defined as a form of ratio which is being used by companies in
order to measure level of profitability of different kinds of operations and activities.
Under this, a range of ratios are included and some of them are calculated in such
manner:
 Gross profit ratio- Gross profit / net sales * 100
All data in ‘000 except gross
margin
Year
2018
Year
2019
Gross profit 5050 5150
Net sales 5500 6000
Gross profit ratio 91.82% 85.83%