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Financial Analysis of TAB Automobile Limited

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Added on  2023-06-03

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This article provides a detailed financial analysis of TAB Automobile Limited, including ratios for operating performance, profitability, liquidity, and stability. The article concludes that the company is performing well overall, but needs to improve its direct costs to gross income ratio and liquidity ratio. The article also includes a suggested price for BAT to purchase the business.

Financial Analysis of TAB Automobile Limited

   Added on 2023-06-03

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Running head: FINANCIALS
FINANCIALS
Name of the Student
Name of the University
Author Note
Financial Analysis of TAB Automobile Limited_1
1FINANCIALS
Table of Contents
Part 1: Financial Analysis................................................................................................................2
Answer to Question 1..................................................................................................................2
References and Bibliography...........................................................................................................7
Financial Analysis of TAB Automobile Limited_2
2FINANCIALS
Part 1: Financial Analysis
Answer to Question 1
Part a
Ratios
Ratio Formula Answer
Gross Profit Ratio % =Gross Profit/ Gross Income =3000/10000
=30%
Net Profit Ratio =Profit after tax/ Gross
Income
=1700/10000
=17%
Operating costs to Gross
income Ratio %
=Operating costs/ Gross
Income
=1300/10000
=13%
Direct Costs to Gross
income Ratio %
=Direct costs/ Gross Income =7000/10000
=70%
Return on Assets % =profit before interest and
tax/ Total assets
=1700/10000
=17%
Return on Equity =Profit after tax/ Total
shareholder`s Funds
=1200/6000
=12/60
Financial Analysis of TAB Automobile Limited_3

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