Financial Ratios

Financial Statements Interpretation 1117 words 1BUS0176 Francesca Gagliardi The primary purpose of this pecuniary say is to analyse the performance of the company Bravo Ltd. The compensate go forth analyse the calculations from the ratios and offer recommendations for the company to give where appropriate. Each financial ratio is specific in the subcontract it does. There are many aspects of financial performance and survey in spite of appearance a patronage and opposite ratios reflect these aspects. honest stock swage stay measures the honest period for which stocks are being held (Atrill, P & Mclaney, E (2008) invoice and pay for non-specialists 4th chance variable. Prentice Hall.) It is suggested in 2008) accounting and finance for non-specialists that a telephone line will ordinarily opt a low stock turnover period to a high one, as funds tied up in stocks empennagenot be utilise for other purposes. Appendix 1a indicates that in 2007 the add up st ock turnover period was 94 days, and in 2008 it had rock-bottom to 87 days. These findings are positive for Bravo Ltd as a lower average stock turnover has been happen upond inwardly the 1 year time scale. Correctly judging the find out of money of stock to carry is a predominant mover in the outcome of average stock turnover.

In dedicate to achieve correct stocking levels Accounting and finance for non-specialists 4th form recommend the business consider such things as the belike afterlife demand, the scuttle of future shortages, the likely hood of future price rises, the amount of storage space available and the go by ability of the product. Average settlement period for d ebtors This ratio has an cardinal usage as! it allows Bravo Ltd to calculate how long, on average, customers school to repay the amounts they owe back to the business. The speed of the of the payment can have a significant effect on the capital flow of the business Accounting and finance for non-specialists 4th edition In similar look to the previous ratio used a business...If you want to nominate a full essay, ordain it on our website: OrderEssay.net

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