Financial Analysis

Running head: FINANCIAL ANALYSIS
FINANCIAL ANALYSIS
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FINANCIAL ANALYSIS1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Efficiency Ratio.....................................................................................................................2
Liquidity Ratio.......................................................................................................................4
Profitability Ratio...................................................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7

FINANCIAL ANALYSIS2
Introduction
Car sales is an online marketplace which deals with the business of motorcycles and
automobile. In recent years the online purchase and sales has been increasing in quite a
drastic manner. The chosen company for this assignment is listed in the ASX or rather known
as the Australian Stock Exchange. For the purpose of acknowledging the financial
performance of Car Sales for the last years of business operations, the tools which is used to
comprehend the financial performance of the company is ratio analysis based on the annual
report of the last four years starting from the year 2015. It is significant to apprehend the
business performance of Car sales and further its effectiveness in the domain of the online
market selling.
Discussion
It is significant for the business to understand financial performance of the company
by analyzing the annual report. Based on the analysis and interpretation the directors of the
entity actually take major business decisions which will definitely create impact on the future
business performance (Fisher 2018). The daily business activity must be considered at the
time of evaluating the overall business performance of the entity based on the long- or short-
term objectives of the business. The ratios of the company which is Car sales.com have been
depicted accordingly.
Efficiency Ratio
The efficiency ratio of the Car Sales has analyzed in order to understand the overall
business financial effectiveness of the business. The fundamental of the efficiency ratio
actually deals with the time period taken by the company to adjust the receivables and
payables.