This report provides a financial analysis of a business, focusing on key financial ratios to evaluate its performance. It begins with an introduction to financial management and its importance. The core of the report involves the calculation and analysis of various financial ratios, including the gross profit ratio, operating profit ratio, return on capital employed, current ratio, acid test ratio, trade receivables turnover, trade payables turnover, and non-current asset turnover. Each ratio is calculated for two financial years, with a detailed analysis of the results, highlighting trends and implications for the business's financial health and operational efficiency. The report uses the calculated ratios to assess the company's profitability, liquidity, and efficiency. The analysis includes a comparison of the ratios over the two years, pointing out improvements or declines in performance and their potential causes. Finally, the report concludes with a list of the references used, including academic journals and books, to support the financial analysis.
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