Managing Financial Performance

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2

Managing Financial
Performance
3

INTRODUCTION...........................................................................................................................1
Critical personal reflection..............................................................................................................1
MAIN BODY..................................................................................................................................2
Question 1........................................................................................................................................2
1. Vertical trend analysis.............................................................................................................2
2. Horizontal trend analysis.........................................................................................................4
3. Profitability ratio analysis........................................................................................................5
4. Liquidity ratio analysis............................................................................................................7
5. Efficiency ratio analysis..........................................................................................................9
6. Gearing ratio analysis............................................................................................................10
Question 2......................................................................................................................................11
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Part A.............................................................................................................................................11
1. Calculate the contribution of each product............................................................................11
2. Company should stop making product Y..............................................................................12
3. Company should stop making product Z...............................................................................12
4. Discuss how marginal costing calculates and why it is beneficial to calculate product value
of firm........................................................................................................................................12
5. Discuss that profitability will improve by ceasing to make Products Y and Z and what
should company do to improve profitability.............................................................................12
Part B.............................................................................................................................................13
1. Net Present Value..................................................................................................................13
2. Payback Period......................................................................................................................14
3. Internal Rate of Return..........................................................................................................14
4. Recommendation...................................................................................................................15
5. Critically discuss the limitations of project appraisal techniques..........................................15
Question 3......................................................................................................................................15
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
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INTRODUCTION
Managing financial performance refers to the manner in which an entity handles and tracks
the financial statements (Carnovale, Rogers and Yeniyurt, 2019). Primary purpose of financial
performance is to compare real outcomes with budget estimates, and make changes.
Organizations are well positioned to perform on their company goals. Financial performance
management is a broad collection of skills that involves defining primary performance metrics
for their businesses, constructing financial strategies and predictions, monitoring performance
analysis, and maximizing operating productivity and company-wide implementation finance.
This assessment covers the several topics such as financial performance of Sainsbury’s over the
last five years, evaluate the profitability of different products and write an essay about the CSR
policies of the organizations across the world.
Critical personal reflection
While completing this assignment, i was unable to pass this assessment at first time because
due to lack of research and lack of knowledge regarding practical questions affect the results. In
my second assessment, I am done proper research regarding the topic which I was covered in this
report. At the time of re-submitting my assignment I make sure that, I will do all the required
changes which helps me to pass this assessment after re-submission. In the initial assignment,
there was very limited information with insufficient resources which unable others to understand
and it does not fulfil the requirement or learning objectives. In the previous assignment, I was
unable to pass because in first questions I have to done several things but I covered only limited
information which affects my overall assignment. I was lacking in several skills such as time
management, communication, research skills, problem solving etc. In first question i have to
done vertical or horizontal analysis along with ratio analysis of the company along with its
competitor’s information and represent by using graph. But i was unable to done all the
calculation at first time and because of this, i was unable to pass. After improving my all the
lacking skills such as time management, research, problem solving etc. I am unable to re-submit
my assessment where i cover all the requirements which fulfil the learning objectives of the
assessment.
In addition, due to lack of knowledge regarding capital budgeting method for the
selection of suitable method affect my performance. After improving my research skills, i
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