Analysis of Business Performance of T-shirt Ltd

Business Finance

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
Analysis business performance of T-shirt Ltd ............................................................................1
TASK 2............................................................................................................................................5
Brief description related with financial information & management of cash of T-shirt Ltd ......5
TASK 3............................................................................................................................................7
Explanation of budget and its essential techniques .....................................................................7
CONLCUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
Business organizations to run their trade activities require effective management of their
finance resource. Finance is the source of money through which the overall organization
activities circulate. It is blood of organization. To understand relevance of business finance, T-
shirt Ltd has been taken. This report includes analysis of business performance by calculating
and comparing financial ratio. This also define use of accurate and cash accounting system. It
includes how effectively managers use budget to take decision and identify future profit value. In
this report benefits of public organization registrar in stock exchange has been describe in
effective manner.
TASK1
Analysis business performance of T-shirt Ltd
To evaluate business performance of an organization managers use financial ratio
through which they can easily understand variations arises between each item of financial
statements of an entity.
Statement of profit and loss: This financial statement is prepared to calculate revenue earn by
business organization after deducting all the relevant expense. By formulating this statement
manager can easily interpret effect of every item on generating profit (Yadav. and Kapoor,
2018).
Profitability ratio
Gross profit ratio
Particular 2018 2019
Gross profit 1261 615
Sales 2101 1366
Gross profit ratio = GP/ Sales
*100
60.01% 45.02
Operating profit ratio
Net revenue ratio
1