Financial Performance Analysis of Jackdow Ltd Company

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Ratio calculation..........................................................................................................................3
Evaluation of ratio........................................................................................................................7
Ratio evaluation in comparison to the industry average..............................................................8
Additional information that can enhance the evaluation.............................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Financial management is defined as the concept related to controlling and monitoring the
financial resources associated with the organisation. This report is based on the case study of the
Jackdow Ltd Company in respect to its financial performance. The organisation has been
engaged in sports retailing sector. Company offer its products over internet where customers can
buy the products offer by the organisation. This project would overlook at the financial
performance of the company. Henceforth, report will emphasis over financial performance of the
company on the basis of the calculation in respect to profitability, efficiency and other respective
ratios. Evaluation will also done in regard to the ratio calculated of the two financial years.
Comparative assessment will also done in this project with the current ratios of company with
industry average performance. Furthermore, this report would comparatively analysis the
financial performance of organisation against the industry average statistics.
MAIN BODY
Ratio calculation
Return on capital employed
ROCE = EBIT/ Capital employed
Capital employed = Total asset – current liability
2019
= 39280 (97280 – 43400 – 14680) / 161000 (231500 – 70500) * 100
= 24.4%
2020
= 53600 (115900 – 37650 – 24650) / 300600 (456500 – 155900) * 100
= 17.83%
Net profit margin
= Net profit / sales * 100
2019
= 34600 / 386400 * 100
= 8.95%
2020
= 26600 / 764200 * 100

= 3.48%
Gross profit margin
= Gross profit / sales * 100
2019
= 97280 / 386400 * 100
= 25.17%
2020
= 115900 / 764200 * 100
= 15.16%
Current ratio
= Current asset / current liability
2019
= 96500 / 70500
= 1.37
2020
= 144500 / 155900
= .93
Acid test ratio
= current asset – inventory / current liability
2019
= 96500 – 51200 / 70500
= .643
2020
= 144500 – 85300 / 155900
= .38
Debtor collection period
= Debtor / sales * 365