CVP and Financial Statement Analysis

CVP AND FINANCIAL STATEMENT
ANALYSIS

EXECUTIVE SUMMARY
Current report is divided into two part. Part A highlight the Financial statement analysis of Ytrew
Limited and its competitor. On the basis of the same after that repost highlights the comparison
between both the company on the basis of operating profit, Liquidity and Return on Equity. In the
PART B of the report highlights the break even point for the company and on the basis of the same
Cost volume profit chart of the company. In the end report recommend whether desire changes in
production and machinery need to be made by the organization or not.

Table of Contents
PART A.................................................................................................................................................4
PART B.................................................................................................................................................6
CONCLUSION....................................................................................................................................8
APPENDIX.........................................................................................................................................11

PART A
a)
Ytrew Limited Competitor
Average Collection Period 31.0 30.0
(Average Account receivable/Net Credit
sales)*365
Debt Ratio 37.50% 33.00%
(Total Liability/ Total Assets)
Fixed Asset turnover ratio
(Net Sales/Average Fixed Assets) 3.64 3.0
Interest Coverage Ratio 4.3 3.3
(Profit before interest and tax/ Interest
expenses)
Net Profit Margin 5.4 5.4
(Net Income/Total Sales)
Quick Ratio 1.6 1.5
(Current Assets – Inventory/ Current
Liability)
Return on Equity 0.2 0.2
(Net Income/Shareholder Equity)