Business Decision Making: Analyzing Sales, Cost & Profit of Faith Ltd

Verified

Added on  2023/04/07

|13
|652
|477
Report
AI Summary
This report provides a comprehensive analysis of Faith Limited's sales, cost, and profit trends from 2004 to 2014. Through column graphs and trend lines, the analysis reveals fluctuating sales and profit levels, alongside increasing costs. The sales increased from 2004 to 2007, peaking in 2008, followed by a decline until 2012 and a subsequent rise in 2014. Cost increased from 2004 to 2009, with fluctuations thereafter. Profit consistently increased from 2004 to 2007, surged in 2008, and then declined until 2012, recovering by 2014. Trend lines indicate an overall increasing trend for both sales and profit, with sales growing at a higher rate. The report suggests that Faith Limited needs to implement effective strategies to control costs and enhance sales to ensure continuous profit growth. The document concludes with a list of references. Desklib offers a wide array of similar solved assignments and past papers to aid students in their studies.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
BUSINESS DECISION
MAKING
TASK 3.3
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
COLUMN GRAPH FOR SALES
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
50
100
150
200
250
300
350
Document Page
INTERPRETATION
It can be analysed that sales increases from 2004 to 2007 and
in 2008 it highly increases and reaches up to 300. After that
sales of Faith limited is consistently decreases up to the FY
2012 i.e. 210.
It shows that organisation unable to attract more number of
customers in such period of 2008 to 2012. Further, in the year
2014 it raises and total sales is worth of 290 GBP.
The consistently fluctuating trend shows that the management
of firm is not better which lead to reduce sales compare than
enhance.
Document Page
COLUMN GRAPH FOR COST
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
20
40
60
80
100
120
140
160
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
INTERPRETATION
In terms of cost it can be interpreted that it is raises from 2004
to 2009 from worth 110 to 150 GBP.
In the next year i.e. 2012 it reduces and reaches up to 140 and
then again fluctuating. At the end of accounting period 2013 to
2014 cost of production in Faith limited is increases.
From the overall analysis it can be observed that the
management is not having effective strategies to control over
the cost which lead to increase.
Document Page
COLUMN GRAPH FOR PROFIT
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
20
40
60
80
100
120
140
160
180
200
Document Page
INTERPRETATION
It can be visualised from the above graph that, Profit of Faith limited
is consistently enhances from the FY 2004 to 2007.
At the end of financial period 2008 profit is suddenly raises from
100 to 185 due to increasing sales with higher growth rate.
Moreover, it highly declines from the year 2008 to 2012 and reaches
up to worth of 70 GBP. The main reason behind reducing profit by
such amount is reducing sales and increasing cost of production.
At the end of FY 2014 profit of Faith limited is 150 GBP and overall
level of profit is fluctuating.
Hence, the management requires to take corrective actions and
formulate effective strategies to continuously enhance profit and
sales.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
TREND LINE FOR SALES
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
50
100
150
200
250
300
350
f(x) = 8.4545454545x + 182
Document Page
INTERPRETATION
From the above trend line it can be analysed that sales of Faith
limited has increasing trend from the accounting period 2004
to 2014.
It shows that sales is consistently raises but with higher growth
rate than profit.
On the basis of this it can be forecasted that in the future sales
of respective entity will be increase with the higher growth
rate in comparison to profit.
Document Page
TREND LINE FOR PROFIT
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0
20
40
60
80
100
120
140
160
180
200 f(x) = 5.8636363636x + 69.8181818182
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
INTERPRETATION
As per the level of profitability trend of the Faith limited is
upward from the end of financial year 2004 to 2014.
It can be analysed that profit is continuously increases with the
low growth rate compare than above mentioned variable sales.
It can be predicted that in the upcoming financial years profit
will be increasing year by year but with the lower rate of
growth in comparison to the revenue of sales.
Document Page
REFERENCES
Salgado, S., Guvenen, F. and Bloom, N., 2015. Skewed business
cycles. Unpublished manuscript.
Gorard, S., 2015. An absolute deviation approach to assessing
correlation. British journal of education, society and
behavioural science. 5(1). pp. 73-81.
Weise, T. and Chiong, R., 2015. An alternative way of presenting
statistical test results when evaluating the performance of
stochastic approaches. Neurocomputing. 147. pp. 235-238.
Document Page
THANK YOU
chevron_up_icon
1 out of 13
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]