Business Studies Financial Analysis – Business Report

There are many areas of weakness that can be addressed in order to increase financial stability, market share, profitability and compete in order to compete in a competitive environment. Recommendations discussed and not limited to – Improving the average collection period – Improving ways of production Allocating cash to increase equity The following report does show some forms of analysis however comprises of limitations due to the lack of data provided, to reflect on previous years, current economic conditions.
Significance – factors affecting SEES Liquidly: Liquidity is a business’ ability to turn assets into cash in the short term to fund daily business activities. SEES must take into account the liquidity of their assets in order to fund wages, equipment, short-term loan repayments and be able to fund unanticipated externalities. Solvency: Solvency Is the extent to which a business can meet Its financial commitments In the long-term. This Is Important to SEES as it Indicates to the owners, shareholders and creditors the risks of the Investments.
Profitability: Profitability is the ability of a business to maximize their profits. SEES must ensure they maximize their profits as it satisfies both owners and shareholders in the short-term and longer term sustainability of the firm. Efficiency: Efficiency is the ability of the business to minimize costs and maximize profits while keeping assets at a minimum. SEES must adapt their efficiency to their production to monitor the levels of their cash, Inventories and accounts receivables. Financial analysis Liquidity ratio = Gearing (solvency)

Gross profit ratio= Net profit ratio = Profitability: Current Debt to equity = Efficiency: Expense ratio= Accounts receivable turnover ratio = Concerns regarding financial analysis Liquidity: Current ratio: Further analysis of the ratio 5:1 in comparison to the ideal results of 2:1 show that the investment and assets are not being allocated efficiently or effectively, which can affect the financial position of the business. According to the financial analysis, account receivables and inventories hold the greatest value, meaning the goods are to being collected.
In other words, outstanding balances aren’t being collected. Debt to equity ratio: The debt to equity ratio is 51. 3%. The ideal range would be less than 100%, indicating that SEES sits in a healthy range also doing well against the industrial standard. However, this does raise concerns as the business is geared at a low rate, missing opportunities for growth. Profitability: Net profit ratio: Net profit is at 5% which means that for every dollar of sales, only c of profit after tax is being made. This is a major concern for the business as they are not making an efficient amount of profit.

Don't use plagiarized sources. Get Your Custom Essay on
Business Studies Financial Analysis – Business Report
Just from $13/Page
Order Essay

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code THANKYOU