TFW Ratio Analysis

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Executive Summary
The aim of the assignment is to conduct a financial analysis on the Top Fashion Warehouse Ltd
Company and the same was done with the help of ratio analysis for the company. There were
several factors and important points considered for examining and evaluating the inherent risks
of the company. There were several accounts recognized for the company, which was having a
material impact on the balance sheet of the company, and the same was analysed for the
company.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Ratio Analysis..............................................................................................................................3
Inherent Risk................................................................................................................................3
Four Key Accounts......................................................................................................................4
Key Assertions.............................................................................................................................5
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8
Appendix........................................................................................................................................10

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Introduction
The analysis of the Top Fashion Warehouse was conducted by analysing the company
and taking various accounts and factors into consideration for the company. The ratio analysis
for the company was evaluated by incorporating the various liquidity ratio, activity ratio,
profitability ratio and solvency ratio of the company. The inherent risk of the company are the
several factor that affects the company were analysed for the company and taken into
consideration. There were several account evaluated and identified for the company which were
having a material impact on the financials of the company.
Discussion
Ratio Analysis
The financial analysis of the Top Fashion Warehouse Ltd was evaluated with the help of
the ratio analysis for the company. The ratio analysis for the company was evaluated based on
the several ratio, which helped us examine and analyse the performance of the company. The
liquidity ratio, activity ratio, profitability ratio and the solvency ratio were some of the key ratio
evaluated for the company (Bhattacharjee, Maletta & Moreno 2015).
Inherent Risk
The inherent risk factor that arise from the nature of material misstatement of financial
statement of a company, or due to error, and omissions of the various factors and accounts. The
Top Fashion Warehouse Ltd and the business operations of the company were evaluated in order
to identify any inherent risk factor in the same
(BOTEZ, 2015). The two key inherent risk factor analysed for the company were the changes
observed in the cash and cash equivalents and the inventory of the company. The cash and cash