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Finance in SME CONTEXT TABLE OF CONTENTS INTRODUCTION 3 Q1. Performance Analysis of Trainline

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Added on  2020-01-23

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Critical analysis of Trainline’s performance over 2013-2016 using ratio analysis 3 QUESTION 2 7 Preparing estimated cash budget for TrainLine for the period of 2017 to 2019 7 QUESTION 3 INTRODUCTION 9 Critically evaluate the sources of finance in SOFP and techniques to evaluate investment proposal 9 QUESTION 4 11 Discuss the extent to which the entrepreneurial ecosystem has been responsible for the development of Trainline 11 QUESTION 5 11 Critical discussion of ethical consideration that must be taken into account for IPO issuance 11

Finance in SME CONTEXT TABLE OF CONTENTS INTRODUCTION 3 Q1. Performance Analysis of Trainline

   Added on 2020-01-23

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FINANCE IN SMECONTEXT
Finance in SME CONTEXT TABLE OF CONTENTS INTRODUCTION 3 Q1. Performance Analysis of Trainline_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Q1. Critical analysis of Trainline’s performance over 2013-2016 using ratio analysis..............3QUESTION 2..................................................................................................................................7Preparing estimated cash budget for TrainLine for the period of 2017 to 2019..........................7QUESTION 3..................................................................................................................................9Critically evaluate the sources of finance in SOFP and techniques to evaluate investment proposal........................................................................................................................................9QUESTION 4................................................................................................................................11Discuss the extent to which the entrepreneurial ecosystem has been responsible for the development of Trainline...........................................................................................................11QUESTION 5................................................................................................................................11Critical discussion of ethical consideration that must be taken into account for IPO issuance.11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
Finance in SME CONTEXT TABLE OF CONTENTS INTRODUCTION 3 Q1. Performance Analysis of Trainline_2
INTRODUCTIONAs per European definition, Small and medium sized enterprise has been defined as acorporation who employ less than 250 person and whose total turnover did not exceed themaximum level of 50 million Euro. They play an important role in the growth of the economy asthey contribute towards the GDP, generate employment and satisfy consumer need. In order toexecute their day-to-day functions, SMEs require funds and utilize it in an efficient manner foreffective and proper financial management. Trainline is a small business unit that deliver variousservices i.e. railway ticket, distribution and other ancillary facilities to the consumers. Theproposed report here emphasizes upon the performance evaluation and financial status analysisof Trainline. Moreover, it will also looks upon variety of financial sources and discuss the ethicalconsideration that firm needs to taken into consideration at the time of IPO issue. Q1. Critical analysis of Trainline’s performance over 2013-2016 using ratio analysisRatio analysis is a great technique that is often used by number of financial managers toevaluate and analyse the success of business operations and financial position at the end of theperiod. There are number of ratios that are categorized into profitability, efficiency, liquidity &solvency as well. With the given scenario, Trainline’s performance is analysed underneath:Profitability ratios: This ratio are regarded as business performance evaluation ratiowhich assists a firm to determine the success of regular operations.
Finance in SME CONTEXT TABLE OF CONTENTS INTRODUCTION 3 Q1. Performance Analysis of Trainline_3
Gross profit margin(GPM): It is used to examine that whether Trainline hasgenerated good return on sales by mark-up or not. In 2015, it goes to the highest level of68% which was 64.72% in 2012 and after came down to 65.95% in 2015. Decreased GMis a poor sign because of sudden and drastic increase in cost by 21.72%, whilst, turnovergone up by 14.39% because Trainline acquired Captain Train which is a leading ticketretailing firm. Therefore, managers must pay focus in this area and make right pricingmechanism and rationalized cost measures to maximize GPM (Najjar, 2013). Net profit margin (NPM): In 2013, it gone up to 37.61%, thereafter, it reflects acontinuous downward trend to 24.47% in 2016. High administrative cost is the mostimportant reason behind this because in 2016, YOY growth in it was founded to 29.19%.Further, interest revenues of the firm also declined by 43.45% in 2015 and after, it gone upby 15.43% in 2016. Less ratio is a sign that Trainline’s profitability performance camedown which arise the need of rationalized cost measures needs to be taken for profitmaximization (Ahmed and Manab, 2016). Liquidity ratio: It considers that whether Trainline managed their working capital (WC)effectively or not to repay their short-term obligations. Current ratio: It measures that whether establishments have sufficient currentassets or not to meet out their payment to current obligations. In 2013, it gone to 1.86from 1.59 shows greater availability of short-term assets but thereafter, dropped to 1.18.Again, in 2015 gone up to 1.41 and came down to 1.21 in the end. It clearly reflects that
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