Business and Financial Data Study of Grow Management Consultants

This report provides a detailed financial analysis of Grow Management Consultants, a consultancy focusing on leadership for five years. It examines the company's main operations, values, and market capitalization. The report includes a financial analysis, operational review, and ratio analysis to identify areas for improvement and future growth. It reviews the company's profit and loss statements for FY 2018-2019 and 2019-2020, highlighting changes in gross income, expenses, and net profit margins. The analysis covers profitability ratios, including gross profit margin and net profit margin, and discusses the development of a budget and investment plans. The report concludes with recommendations for financial improvements, focusing on increasing sales and reducing fixed costs to boost shareholder value, and considers project finance options.

This report is about the business and financial data study of the on Grow management
consultants. The research will be made on Grow management consultants which are a
consultancy business that mostly focuses on the leadership for 5 years. Grow management
adhere to provide their services Australia wide.
The financial report will have a study about the main operations of the business, the values and
market capitalization of the company. Followed by this, financial analysis, operational review
are been done through analyzing the financial report. The ratios of the companies have been
worked out to find out the actual reason where the progress needs to be done and how the
company can move ahead to the business.
Investment plans for the future growths have also been an area where this report will focus on.
The investment and fund-raising management of the company have to be done as per the total
assets available to the company.
Review
We can review the annual report of the company so to identify the financial improvement of the
company during the year. The improvement has helped the company to improve its core strength
and increase the stability of the company's resources. For the said analysis the financial report
has been reviewed and analysis has been in terms of profit and loss statements to identify the
clear picture of the company based on each item.
Profit & Loss Statement for Grow Management Consulting FY 2018 - 2019
PROFIT & LOSS 2018 - 2019
Income
Consulting fees $1,175,600
Workshops $38,000
E-book $2,000
Executive Search Service $120,000
Gross Income $1,335,600
Expenses
Accounting fees $6,823
Advertising & marketing $5,000
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Computer Software $4,600
Insurance $7,500
Lease/loan payments $1,500
Profit & Loss Statement for Grow Management Consulting FY 2018 - 2020
PROFIT & LOSS 2019 - 2019
Income
Consulting fees -$466,800
Workshops -$787,080
E-book -$1,107,360
Executive Search Service -$1,427,640
Gross Income -$3,788,88
Expenses
Accounting fees $2,641
Advertising & marketing $1,826
Computer Software $1,012
Profit & Loss Statement for Grow Management Consulting FY 2018 - 2020
PROFIT & LOSS 2019 - 2019
Income
As per the above table, it can be reviewed that the gross income of the company has been
decreased $1,335,600 from -$3,788,88 as it shows during the year but the net profit has been
increased by. The reasons for such a result are Reduction in the consulting fees by $ 708800,
which results in a decreasing amount of gross income by $ 956712. Followed by the loss in the
year 2019 of Workshops Income, gross income negative amount in the year 2019 as-$787,080 by
and in comparison of ebook calculation recorded the negative income as -$1,107,360 then the
positive income in the year 2018 of $ 2000. Also, the operating income i.e. exchange gains and
other incomes have been showing a loss in the income of Consulting fees, Workshops, E-book,
Executive Search Service during the year 2019.
Followed by this, this other related cost in terms of loss in expenses has added value to the
company and bring a negative effect on the workings of the company. This also highlights the
decrement of the resources and stopped building the profits.
As per the operational effort, the company has been in the year of 2018 total revenue is higher
Grow management consultants.
2.4 Ratio Analysis:
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Profitability Ratios:
Gross profit margin
Gross income - $1,335,600
Total Expenses - $671,403
Net Profit = $664,197
Gross profit margin=
Gross profit/ sales =1.98
Net profit margin
Net profit/ sales = 0.98
Net profit margin, this illustrates that after the gross profit of the company has been identified
then the company will then identify or clarifies what other costs attracts to the development of
the product or services, all these costs then will be indirectly related to the product sales or
services deliver. Further to this, the company should be noticed how the indirect costs can go
down and how the cost can be efficiently put up a front and increase the net profit of the
company. In having a variance to the subject there can be variance in the strategy but the indirect
costs can always be a factor which can be reduced in higher than any directly related costs.
During the year net profit margin has been recorded as0.98. There has been a fall in profit due to
the less gross income in the profit during the years. The increase and decrease in net profit will
attract the stakeholders to invest in the business and move ahead.
Gross profit margin
Gross profit of the company has been identified then the company will then identify or clarifies
what other costs attracts to the development of the product or services, all these costs then will be
directly related to the product sales or services deliver. Further to this, the company should be
noticed how the direct costs can go down and how the cost can be efficiently put up a front and
increase the gross profit of the company. In having a variance to the subject there can be
variance in the strategy but the direct costs can always be a factor which can be basic in the
services of any of the company and relevant for possessing the gross income of the company.
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The gross profit margin of the company illustrates how much the revenue of the company has
been effectively lower than the expenses. There is the component in determining the gross profit
–
Revenue : The revenue of the company can be stable if the negative amount can be replaced by
the volume of the product/services and then increase in the workshops income or stabilize the
income from the workshops, e-books, consulting fees and executive search services, if these
figures are been put into the picture then the figures for the company can up and then can be
extracted to best potential.
The lower the variable cost of the company, there is higher the probability to increase the profits
for the company. The variable costs of the company will then show the cost of various expenses
and all other indirect costs which are related to the management services. So, if the indirect cost
is lower then the net profit can be at higher side.
Development of a budget
The budget of the company show the management services provided by the grow management
consultants. The budget development is very essential for the company in the evaluation of the
financial report of the company. the forecasting of the expenditure of the year 2018 already done
by the company and with the help of the expenses occurred. For the next year, the projected
capital budget ensure the expenditure plan. The services provided to the customers need indirect
cost in their implementation and by doing so the budget reflect the future position of the
company. the capital budget for the grow management consultant is shown the purchases of
materials in the services of the company, the semi-variable factors and the target generation of
the sales of the company directly linked to the estimation. To do this and the fixed cost like rent,
insurance, and property, consulting fees, accounting fees and the advertisement expenses.
Advertisement expenses are the most important while making an expenditure plan. It helps in the
generation of more income as advertisement directly linked to the income. More expenditure is
done on investment more benefit a company acquired.
Conclusion and Recommendation:
As per the financial data is a concern the company has a good gross profit ratio is not up to the
mark and so the company needs to work out on the current ratio and see the potential where the
company can find the ways to improve their short term loans and arrangement of the working
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capital will work out. the interaction to the company shares is very less. But the area where the
company can boost the share price is the increase in sales and reduction of the fixed cost. This
will insight the shareholders to put more money into the business and get a good return from it.
The main growth is the profit where the sights of the investors are always there and so the
company growth is pushing the shareholders to invest more to the business. The shares of the
company has two different aspects i.e. reserves and the profit segments, the profit segments are
been increasing as the potential is increasing and the share retention has helped the company to
get return to the existing shareholders initially and then later to the new persons who are
stakeholders i.e. the financial institutions whose value can be reduced as the debt ratio has gone
down in previous years and so that can still go down
So, for the project is concern, if the company want to put the money into the project the company
should identify the project length and then the plans can be chosen from the above options, but
the short term loan will not be viable for a long term projects and it will also affect the working
capital of the company. So, that needs to be considered when the project finance option is to be
chosen.
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