Financial Analysis Assessment

Financial Analysis Assessment

Contents
INTRODUCTION.......................................................................................................................................3
Main Body...................................................................................................................................................3
Computation of different ratios and analysis:..........................................................................................3
Recommendation:....................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Financial analyses refer to the review method for the determination of the financial outcome of
the company. It supports the assessment of profit, financial stability, liquidity and longevity
(Zolfani, Yazdani and Zavadskas, 2018). The three key tools used in analyzing the financial
statements are the ratio study, the DuPont assessment and Common Size Financial results. Ratio
analysis is the most popular method. A company can assess various aspects using flexibility,
capital structures, and efficiency, growth and valuation ratios. Business financial review is
helpful to evaluate, compare and evaluate a company. Various players use different amounts for
their specific purposes. The thesis includes the calculation and interpretation of various financial
ratios on the basis of Elite plc's revenue statement and balance sheet. It also includes guidelines
focused on a company ratio review.
Main Body
Computation of different ratios and analysis:
Gross Profit Ratio:
Years 2018 2019
Gross Profit Ratio
Gross Profit 600000 1080000
Sales 3000000 5400000
Gross Profit Ratio = Gross Profit / Sales *100 20% 20%
It sets the ratio of gross profit to the net income generated from sales, also known as the Gross
Profit Percentage (Liang, Zhao and Hong, 2019). The GPR is the performance ratio, multi-plus
by 100. Productivity is the percent. The operating profit margin of Elite plc calculated at 20% for
the years 2018 and 2019. Gross productivity of companies does not increase.
Operating Profit Ratio:
Years 2018 2019