Assessment of Business Performance of T plc

Business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Assessment of the ratios of T plc.................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Financial control is an important component since it enables the business to use and retain
its assets in an efficient and productive way that will serve the firm's long-term goals (Johnson,
2018). This study contains an in-depth analysis of T plc, a retailer company that has been
functioning in the industry for a considerable period and hence has a higher industry presence.
Aside from just that, the study involves an assessment of all of the company's statistics and
associated issues, which is critical in light of the specified business's position in the market. Also
the report includes a variety of aspects that are very critical for a firm and thus are examined and
assessed in a very detailed and thorough manner so that it can add to the worth of the firm which
is mentioned above in the coming future.
MAIN BODY
Assessment of the ratios of T plc
Proportions are important because they allow a business to draw comparisons its
effectiveness on a daily basis, allowing it to evaluate the organization's effectiveness and make
more informed decisions about how it operates. There are many various metrics that a company
evaluates in order to remain ahead of its competition in the industry, and perhaps the most
critical and essential ones are discussed in this research, including profitability ratios, liquidity
ratios, working capital management, and stock market performance ratios.
Profitability ratios- Such proportions also contain sub metrics such as net profit margin
and gross profit margin, which may be used to evaluate the total financial performance of the
company so that revenue-generating assets could be examined effectively and efficiently.
According to the information, the corporation T plc's net and gross profit margins are in decent
form in all three years, with the gross margins of 39, 40, and 40 percent for the years 2018, 2019,
and 2020, respectively, and the net profit margins of 5.8, 5.9, and 6.05 percent for the years
2018, 2019, and 2020, respectively. Overall ratios are impressive in comparison to market
proportions, with gross profit and net profit margins of 37 and 4, correspondingly (Laukkanen
and Tura, 2020).
Liquidity ratio- Such metrics reflect the company's short-term payment ability, and hence
can be said to be very important in establishing the corporation's payment ability. These
comparisons include the current ratio and quick ratio. Both the existing and quick proportions are