GATSBY GRANGE

Calculate the ratios in detail

GATSBY GRANGE
(TASK 2)

Table Of Content
 Introduction
 Brief overview
 Conclusion
 References

Introduction
This presentation is all about the Gatsby Grange which is a part
of small Boutique chain in two locations such as United
Kingdom and Northern Ireland (Victoria And et.al., 2018). This
presentation based on the brief overview of report which is
about the calculation of ratios which helps in evaluating
company’s performance in terms of profitability, gearing,
liquidity and financial leverage.

Brief overview
Financial management is essential tool for organizations to
manage their financial resources. In order to evaluate
company’s performances, managers of Gatsby Grange use ratio
analyses to measure the performance in terms of profitability,
liquidity and financial leverage.

Continue..
According to the calculation of Gatsby Grange, company’s
performance in terms of profitability was very good where gross
profit margin in 2018 was 91% which reduces in 2019 and
remained at 85%. On the other side, net profit margin also
reduces from 72% to 67% due to high operating expenses
(Zolfani, Yazdani and Zavadskas, 2018). These fluctuation
required management concern where they need to formulate
strategies to enhance profitability performances.

Continue..
Ratio analysis is an essential management method for hotel
management that will enhance the understanding of financial
outcomes and historical trends, as well as provide key
performance metrics. Management teams can use ratio analysis
to define the strengths and limitations around which to
construct plans and programs.

Conclusion
It has been concluded that ratio analysis is essential tool to
determine the financial performance and also used to compare
the current year performance with previous year. Ratio analysis
is useful for decision making purpose as well as identifies the
business or financial risk.

References
 Victoria, J. And et.al., 2018. Transmission attenuation power
ratio analysis of flexible electromagnetic absorber sheets
combined with a metal layer. Materials. 11(9). p.1612.
 Zolfani, S. H., Yazdani, M. and Zavadskas, E. K., 2018. An
extended stepwise weight assessment ratio analysis (SWARA)
method for improving criteria prioritization process. Soft
Computing. 22(22). pp.7399-7405.

Thank You