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Trainline: An SME-driven Finance Platform

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Added on  2020-01-28

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Critical analysis of Trainline’s performance over 2013-2016 using ratio analysis For the purpose of calculating the Ratio's comparative balance sheet of Trainline is mentioned above: ||2012 |2013 |2014 |2015|2016 |Intangible |4035 |4418 |6206 |2197913|19931| |assets| || | || | |Tangible assets|20784|20149 |15537|9859|2035 | |Non-current(Fix

Trainline: An SME-driven Finance Platform

   Added on 2020-01-28

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Finance in an SME context
Trainline: An SME-driven Finance Platform_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Q1. Critical analysis of Trainline’s performance over 2013-2016 using ratio analysis..............3Q2. Projected Cash Budget For the year 2017, 2018, 2019.........................................................5Q3. Critically evaluate the sources of finance in SOFP and techniques to evaluate investmentproposal........................................................................................................................................6Q.4. Discuss the extent to which the entrepreneurial ecosystem has been responsible for thedevelopment of Trainline.............................................................................................................8Q.5. Critical discussion of ethical consideration that must be taken into account for IPOissuance........................................................................................................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
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INTRODUCTIONSince this present scenario has been seen as a domination of small medium sized firmswho are growing at a rapid pace equally contributing in the growth of the economy as wellthrough continuously contributing towards the GDP and different factors which generateemployment and satisfy customer needs up to an extent. When we talk about startups or smallbusiness who marks their presence in industry with innovative and creative set of services thesedays, they execute their routine functions by acquiring funds and utilizing them in an efficientand effective manner. As per this report it is emphasized on one of the small and medium sizedfirms of UK which is Trainline. Trainline delivers quality services , in its portfolio of services itincludes railway ticket, distribution and other ancillary facilities to the consumers. The reporthere is undertaken in order to put emphasis on performance evaluation and financial status ofTrainline. Further it will also look upon the variety of financial sources and ethicalconsiderations that firms need to take into consideration at the time of IPO issue. Q1. Critical analysis of Trainline’s performance over 2013-2016 using ratio analysisFor the purpose of calculating the Ratio's comparative balance sheet of Trainline ismentioned above:20122013201420152016Intangible assets403544186206791319931Tangible assets20784201491553798592035Non-current(Fixed) assets2481924567217431777221966Inventories6163563431Accounts receivables14887318907291043124455153121Cash at bank and in hand4228050747439497788644408Current assets191214239882135048202375197560Total Assets216033264449156791220147219526Equity and liabilitiesAccounts payable120227128772114502143067162990Provision for liabilities91142222259378Current Liabilities120318128914114824143326163368
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Called up share capital3588235882113111311131Share premium reserve4424944249Profit and loss account1558155151108367569055027Equity capital and reserves95715135585419677682156158TOTAL Equity and liabilities216033264499156791220147219526Ratio analysisis a quantitative and financial technique that is often used by the number ofbusinesses to measure their operational performance. It express quantitative relationship betweentwo or more variables of the financial statements and used to measure and compare theprofitability, liquidity, efficiency and solvency position of the firm. Itis considered as aneffective method to examine and evaluate business performance over an accounting year.There are different accounting ratios for the purpose of evaluating operational efficiencyof the firm and that is Profitability ratio, Debt-equity ratio, and many more. For the purpose ofevaluating Trainlines operational efficiency Six ratios which are taken are:KEY RATIOSProfitability RatiosReturn on equity29%93%45%59%Return on assets15%25%16%15%Return on sales38%36%30%24%Gross profit margin63%66%68%66%Asset turnover ratio40%69%53%61%Leverage and Liquidity RatiosCurrent ratio1.861.181.411.21Profitability ratios like gross profit ratio and net profit ratio are used to attain theefficiency of business to generate return on their total sales. High ratio is a good sign of businessperformance or vice-versa. Gross profit ratio examine profit percentage on total sales whereasnet profit ratio measure relation between net yield and total turnover. As per the results, it can be
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