Financial Performance of Macmillan Cancer Support: A Ratio Analysis

Macmillan Cancer
Support

EXECUTIVE SUMMARY
This study summarises the financial performance of Macmillan Cancer Support
organization with the aid of a ratio analysis. This report also contains the macro or micro
environmental factors that influence the company. With the aid of financial results, investors are
possible to ascertain the performance and appreciate the financial condition of the company.
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EXECUTIVE SUMMARY 1
INTRODUCTION 3
MAIN BODY 3
TASK 1 3
Carryout Analysis of Economic Factors and discuss their impacts on the Business 3
TASK 2 5
Calculate the following ratios for each of the three years 5
TASK 3 8
Explain Accounting Ratios and their importance in Business 8
RECOMMENDATIONS 9
CONCLUSION 9
REFERENCES 10
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INTRODUCTION
There are various economic factors that affect the organisation and it happens when
goods are more or less expensive to produce, and the entire curve will affect the outcome or shift
towards right or left side (Al Breiki and Nobanee, 2019). Anything that increases the cost of
production, for example, increasing production rates, high taxes and higher wage costs, would
push the supply curves down and up. This study concerns the measurement of the financial ratios
and impacts the organisation. In addition, it involves the macro or micro environmental factors
that influence the company.
MAIN BODY
TASK 1
Carryout Analysis of Economic Factors and discuss their impacts on the Business
Macro-economic factors: In an organizational context, there are several macro-economic
factors which affect the business such as economic growth rate, interest rate, unemployment,
international trade, inflation etc. For example, company sales rates throughout all sectors are
changing as the economy grows. If they get enough capital to run their business through loans,
they need to track interest rates and foresee how they should adjust with the economy.
Unemployment rates also impact businesses in a number of ways. International trade affects the
performance of both multinational companies and local firms that are trying to expand.
Figure 1 Macro-economic factors, 2020.
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