logo

Financial Performance of the Company Assignment - Uber tools Ltd

   

Added on  2020-11-12

11 Pages3315 Words452 Views
Business

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................11 A) Explaining meaning of profit, cash flows and their difference...........................................11. B) Explaining meaning of working capital, receivables, inventories and payables................21. C) Effect of change in working capital over cash flow...........................................................22. Impact of financial results of the company over its management activities...........................33. Analysis and recommendation for the company as to improve its working capitalmanagement................................................................................................................................3PART 2............................................................................................................................................41.A) Explaining element of financial performance.....................................................................41. B) calculation of various financial ratios................................................................................51. C) Analysis of the financial ratios..........................................................................................62. Analysis and recommendation for the board for assessing the financial performance of thebusiness.......................................................................................................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9

INTRODUCTIONA business is that organisation or the economic system that is concerned with the buyingand selling of goods and services with a key purpose of generating profits from those activities.A sum of investments, customers, suppliers, etc. are the basic requirements of a business. Thepresent study is about Uber tools Ltd. It shows a detailed information about profit and cash flowsalong with their differences. Description about working capital, receivables, stocks an tradepayables as well. It also shows impact of financial results over the company's management alongwith a brief recommendations for the company as to improve its working capital management(Pilbeam, 2018.). Further, the study also shows calculations of various financial ratios of the Uber toolsLtd. And a description of the financial condition of the company on the basis of those results.The assignment provides a brief analysis and recommendation as to enhance the financialperformance of the company. PART 11 A) Explaining meaning of profit, cashflows and their differenceProfitThe term profit can be defined as the total earning generated by the business after settingof all the debts and expenses incurred by the business during a specific period. Cash flowsCash flows is that amount which flows inside or outside the business while performingthe business operations like operating, financing, investing and other activities of the businessorganisation. Difference between profit and cash flowsBasisProfitCash flowsMeaning Profit can be define as allexpenses are less from therevenue generate by thecompany.Cash flow define only cashinflow and outflow from theoperational , financial andinvesting activity.Situation It is not dynamic and itdepends upon all activities ofIt is realistic and dynamicwhich is effected by day to day1

the company.activities.1. B) Explaining meaning of working capital, receivables, inventories and payables.Working capitalWorking capital refers to the difference between all the current assets and currentliabilities held by the business. The working capital shows the amount of money held by thebusiness for the purpose of performing its business activities. In other words, the amount ofworking capital shows the liquidity of the company (Alfaro, Bloom and Lin, 2018). ReceivablesIn terms of the business, the receivables refers to the amount which has not been paid bythe customers against the goods or services delivered to them. Receivables of the company arebeing taken as the current assets of the business organisation which would be received by it innear future.InventoriesInventories can be defined as the stock held by the business for the purpose of using it inthe further production or selling it in the market. Inventories are the current assets of thecompany for which the business has to develop a strong plan as to enhance the efficiency of thecompany in using the assets.PayablesPayables are the part of debts over the business organisation. These are the amount due tothe company against any asset or other business equipments received and used by the company. 1. C) Effect of change in working capital over cash flowIn the cash flow statement, the working capital is considered as a part of operating cashflows. A higher amount of working capital shows the higher liquidity of the business andfinancial strength of it as well. Further, due to the higher amount of liquidity, the company's cash flow statement alsoprovides the positive result in terms of higher amount of cash inflow than the cash outflows. Ifthe working capital of the company changes, it would effect the liquidity of the business. As aresult the cash flow statement of the company will also be affected. 2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Finance Module - Assignment
|11
|3255
|490

Business Finance - Assignment Solution
|13
|3654
|420

Business Finance- Assignment
|11
|3312
|175

Business Finance in UK Listed - UBER
|15
|3760
|125

Meaning of profit and cash flow in business finance
|12
|3434
|325

Analysis of Business Finance
|16
|3877
|340