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Report on Financial Analysis of Business Firm

   

Added on  2020-04-21

8 Pages1366 Words255 Views
Financial Analysis1
Report on Financial Analysis of Business Firm_1
ContentsIntroduction......................................................................................................................................3Part A: Ratio Analysis of the Watley Company..............................................................................3Liquidity Analysis........................................................................................................................3Activity Analysis..........................................................................................................................3Profitability Analysis...................................................................................................................4Solvency / Gearing Analysis........................................................................................................5Part B: Financial Analysis...............................................................................................................5Recommendation and conclusion....................................................................................................6References........................................................................................................................................72
Report on Financial Analysis of Business Firm_2
IntroductionIn every business, there is always a concern for the financial performance and whatmeasures are needed to improve the financial performance of the organization. There are manyways to analyse the business performance and among them ratio analysis is very useful as ithelps to evaluate the performance of the current year as well it helps to compare it with thefinancial performance of previous years. In this report financial performance of the WatleyCompany has evaluated using the ratio analysis in part A and comments are made on thefinancial performance of the company in part B with some recommendation. Part A: Ratio Analysis of the Watley CompanyLiquidity AnalysisLiquidity analysis helps in ascertaining the short term financial health of the companyand provides the information on how the company manages the payments in respect to thecurrent liabilities. Some of the important ratios of the liquidity analysis are current ratio, quickratio, and working capital ratio. In this report there is need to calculate the ratio for each categoryso current ratio has been selected (Bender, 2013).Current Ratio: It is very important liquidity ratio as it provides availability of the current assetsover the current liabilities. Current ratio measures the liquidity performance of the companyprovides the information about the short term performance in respect to payment required tomake to suppliers and other short term liabilities.Formula: Current Assets/Current Liabilities3
Report on Financial Analysis of Business Firm_3

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