electronic format

ELECTRONIC
FORMAT
1 | P a g e

2 | P a g e

Table of Contents
INTRODUCTION...........................................................................................................................3
ANALYSIS......................................................................................................................................4
1. Liquidity ratio:.........................................................................................................................4
1.1 Current Ratio.....................................................................................................................4
1.2 Quick Ratio........................................................................................................................5
2. Activity Ratio:.........................................................................................................................5
2.1 Inventory turnover ratio.....................................................................................................6
2.2 Total Assets Turnover Ratio..............................................................................................6
2.3 Fixed Assets Turnover Ratio.............................................................................................7
2.4 Accounts Receivables Turnover Ratio..............................................................................8
3. Leverage Ratios.......................................................................................................................8
3.1 Debt to Assets Ratio..........................................................................................................9
3.2 Debt to Equity Ratio..........................................................................................................9
4. Profitability ratio:...................................................................................................................10
4.1 Gross profit Margin.........................................................................................................10
4.2 Net Profit Margin.............................................................................................................11
4.3 Operating Profit Margin..................................................................................................11
5. Market Ratio.........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
3 | P a g e

INTRODUCTION
The process of reviewing and evaluating a company's financial statements (such as balance
sheets or profit and loss statements), thereby enabling an understanding of the company's
financial health and making more effective decisions. Financial statements recorded financial
data; however, this information should be evaluated through financial statement analysis to
become more useful to investors, shareholders, managers, and other interested parties. Financial
statement analysis is an evaluation method to determine the present past and estimate the
performance of a company (Murthy, Manyam and Manjunatha, 2018). Several techniques are
commonly used as part of financial statement analysis, including horizontal analysis, which
compares two or more years of financial data in both dollar and percentage forms; Steep analysis
where shown as a percentage of the total account of each category of accounts on the balance
sheet; Ratio analysis, which calculates statistical relationships between data (Minhas, Mishra
and Swami, 2017). This project consists of various ratio analysis of Rangemaster plc from 2018
to 2019; these ratio analysis done for performance analysis of the company.
4 | P a g e