Managing Financial Resources - Analysis of Enero Group Limited

MANAGING FINANCIAL
RESOURCES

EXECUTIVE SUMMARY
Financial management refers to the process of planning, directing, organising and
controlling the financial activities like the procurement and the utilisation of the funds of
company applying the general management principles. Report has analysed the financial
performance and position of Enero group limited which is a telecommunication and marketing
company. Financial position of the company is strong however from the past years it could be
seen that the performance of the company is declining at a steady. Financial performance of the
company is required to be managed with corporate restructuring for preventing the downfall of
profits. It is to be controlled using strong strategies to stabilise the performance and position of
the company.
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Table of Contents
INTRODUCTION...........................................................................................................................3
Financial Ratio analysis...................................................................................................................3
Vertical and trend analysis...............................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Financial resources are those resources which are scarce in nature and required to be
managed effectively. It is completely based on the information gathered by analysing the
performance of the company. There are various tools which can eb used by the company in
analysing the financial performance of the company. This report, states about the financial
performance of Enero Group. It provides detailed analysis of the financial statements of the
company, that is, income statement and balance sheet with the help of financial ratio analysis,
vertical analysis and trend analysis of the company.
Financial Ratio analysis
Profitability
Profitability ratio
Enero Group
2019 2018 2017
Employed
Capital
(Total Assets
- Current Li-
abilities)
14617
2
14578
6
11301
7
Net profit 3581 5661 8473
Return on
capital
employed
Net operating
profit/Em-
ployed Capi-
tal
2.45
%
3.88
%
7.50
%
Net In-
come 3581 5661 8473
Share-
holder's
Equity
11763
1
11424
0
10225
3
Return on
Equity
Net Income /
Shareholder's
Equity
3.04
%
4.96
%
8.29
%
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