INTERPRETATION The above drawn all the graphs and charts are shows sales and profit earned byABC Limited at the end of financial year 2011 to 2016. From the above charts and graphs it can be interpreted that revenue of the ABC Limited is increases from the year 2011 to 2012 which shows that it is able to attract more number of travellers and visitors in order to purchase its tour packages. Further, due to this profit is also enhances from £90 to £110 in same year. Further, in the year 2013 sales and profit both are reduces and come up at £265 and £95 respectively.
INTERPRETATION Afterwards, from 2013 sales is consistently raises up to the year 2016 from worth £265 to £430. Increasing sales lead to raise profit as well within same financial year which is from £95 to £190. This shows that the ABC Limited has better business and marketing strategies by which sales and profit enhances. With this management of tour company is able to control over theexpenses by which profit affected in positive manner.
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TREND LINE 201120122013201420152016 0 50 100 150 200 250 300 350 400 450 500 f(x) = 34.2857142857x + 208.3333333333 f(x) = 18.5714285714x + 61.6666666667 Sales Linear (Sales) Profit Linear (Profit)
INTERPRETATION The above mentioned trend line describes that sales as well as profit both has upward trend from the financial year 2011 to 2016. There is a difference is that revenue increasing with the higher growth rate while rate of growth in the profit is lower compare than sales. It can be forecasted that ABC Limited will be generate revenue in the upcoming accounting periods with the higher growth rate. On the other side as per the margin it can be predicted that management will earn profit in the future but at lower value in comparison to sales and revenue.
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