ipl-logo

Business Level 3 Unit 2 D2 Evaluate The Financial Performance

903 Words4 Pages

D2 evaluate the financial performance and position of a business using ratio analysis. In this task I will be evaluating all the ratios and explain how it will impact on Kai Enterprise. The ‘Gross Profit Margin’ for Kai Enterprise is 59.1%. This is a decent rate as it is more than 50% which means that the business has a higher portion of money which is accessible to spend on operational payment and also the business retains. Kai Enterprise should target to keep the firmness of expanding their sales turnover and additionally aiming to reduce the expense of sales to make sure that they have a safe and effective future, avoiding any financial crisis. Kai Enterprise owner can reinvest money into the business as they have enough money making it …show more content…

This basically demonstrates that the business is having more inflow of cash than outflows. For Kai Enterprise the first year of this percentage has been quite good. According to this rate Kai Enterprise has a splendid and bright future. This implies that Kai Enterprise owner needs to control their out flows wisely. Kai Enterprise owner will be required to find shareholders who will then invest the business leading to more money being produced. This will allow Kai Enterprise business to go to broadly and globally later on. Also the money can be utilized for the benefit of the business, for example Kai Enterprise can expand as a business or publicizing the product …show more content…

This ratio is exactly the equal to the similar industry average which shows that the company is doing not so bad. Furthermore, this shows that the company is able to pay off their short term liabilities simply with their current assets. This also means that the business is easy to pay off their short term liabilities in the forthcoming period of time. The ‘debtor’s payment period’ for Kai Enterprise is 34 days. This demonstrates that Kai Enterprise will take 34 days to recover all debts from their customers and partners. This number is quite good Compare to the similar industry average of debtors payment periods of 41 days. As they are getting their money back in a decent period of time (a month), this shows a positive and solid relationship between Kai Enterprise and its customers or partners. This will be great later on too, basically because they will remain fiscally stable even after lending their partners

Show More
Related

  • Home Depot Financial Analysis Essay

    1214 Words  | 5 Pages

    Over the past ten years, total number of outstanding shares has dropped 40%. The company is very committed to investing money back into own stock thus increasing share price and

    Read More

  • Btec Business Level 3 Unit 9 P2

    145 Words  | 1 Pages

    Operations team will be working on Holiday routes, to insure proper customers are service on days requested. Operations team has identify the long routes on the weekend has reroute routes to cut down on labor we have seen a great improvement on Saturday and Sunday branch closing time has improve as well. We will continue to work on the weekday’s routes and identify which routes needs to be improved. Management will monitor check in and check out process, to reduce time. Will continue to monitor time and attendance and provide proper disciplinary action if needed.

    Read More

  • Btec Business Level 3 Unit 8 P1

    1147 Words  | 5 Pages

    Colour The storage unit uses a variety of colours, this makes the design more appealing to people and stand out more. The design uses pastel colours which are soft and milky colours (teal, flesh and ochre). This makes the storage unit more warm and looks more appealing because the colours are very pleasing to look at. These colours are great for rooms with kids because they are bright and warm, it adds more energy and happiness to the design.

    Read More

  • Business Btec Business Level 3 Unit 13 P3

    106 Words  | 1 Pages

    Person specification, which can also be called success profile, summarizes the characteristics of a candidate’s performance on the job. Job specification is a document in which it describes a persons experience, education, and skills required to do the job in which the candidate is applying for. This document is important because human resource recruiters are showing the requirements to the candidates so that the candidates knows if they are able to apply or not. Having a clear written job specification makes the task for HR easier because people who apply for the position already have some of all of the criteria the organization is asking for.

    Read More

  • JB Hi-Fi: A Listed Public Company In Australia

    602 Words  | 3 Pages

    I reckon this is why JB HI-Fi has larger proportion of debt in its capital structure.and has higher debt-to-equity ratio. Futhermore, the investment of expanding in New Zealand also need massive money and this will increase its debt

    Read More

  • Btec Business Level 3 Unit 9 P3

    560 Words  | 3 Pages

    4b) Website Contents Introduction In this task I will be talking about my website which name I have chosen and what colour scheme will I be using or what images will I put on my website also what type of things will I put on my website and what am going to put on my contact page and some similar website that is same as my website they sell same things I sell on my website. What is your website Product and Company?

    Read More

  • Btec Business Level 3 Unit 9 P4

    97 Words  | 1 Pages

    For my research task the fast food restaurant I have chosen is Nandos because Nandos originates here in South Africa. The quality of their food has always been good, have never a problem with Nandos in terms of service. I’m going to look at their concept of insurance and how it’s implicated for business. I will be also be looking at crime situation in our country and how it affects businesses and how does insurance related to the situation. Also I will take a look at two different types of insurance, know as compulsory and non compulsory.

    Read More

  • Valeant Pharmaceuticals Case Study Answers

    947 Words  | 4 Pages

    SECTION 7 – GROWTH RATES Item Current Year Previous Year Growth Rate Sales 98.61 % 98.38 % .2 % Net Income 1.86 % 13.44 % -86 % Total Assets 48,455 26,353 83.8 % Total Liabilities 42112 21041 100 % Total Equity 6342 5312 19.39 % Comments on growth rates: Sales has increased from last year by 0.2 %, Net income decreased from last year by 86 %. This might be a warning sign for the business.

    Read More

  • Grandma's Best Swot Analysis

    984 Words  | 4 Pages

    Their current ratio is 1.4% (total current assets/total current liabilities). According to the Risk Management Association of Financial Ratio Benchmarks, the current average ratio is 1.5%. In 2014, the current ratio for the firm was 1.46% while the average ratio in the industry (NAICS 311330) was 1.6%. The company’s net property and equipment in 2015 is worth 2.6 million dollars, a slight increase from 2014, which was 2.3 million. The company is considering taking on some debt to increase their production capabilities.

    Read More

  • Economic Growth: The Three Important Economic Policies

    1290 Words  | 6 Pages

    The schemes are aim to encourage people to set up business and to upgrade their business. Thus, more people are willing and able to set up business and upgrade their business. As a result, it

    Read More

  • The Importance Of Accounts Receivable

    773 Words  | 4 Pages

    According to the Small Business Encyclopedia accounts receivalbe is “the money due from all customers for merchandise or services delivered on credit.” On the balance sheet accounts receivable is shown as a short-term asset. Accounts receivable appears when the company bills the customer for the goods or services with the bill for not immediate, but for later payment. So, accounts receivable meaning is - the cash “to be received” and therefore accounts receivable has an impact on the cash flow of the company. On the one hand – accounts receivable is very positive thing, on the other – quite risky.

    Read More

  • Kingfooder Airlines: Case Study: Kingfisher Airline

    1558 Words  | 7 Pages

    7,000 crore with half of its fleet grounded and several members of its staff going on strike. In November 2010, in order to cater heavy debts and interest from the loans taken, the company went in for debt restructuring. As a part of it total of 18 leading lenders agreed to reduce interests and convert part of debts to equity. Debt restructuring helped the company to lower down interest to 11% and save ₹500 crore/year as interest cost.

    Read More

  • Strategic Financial Analysis Approach

    889 Words  | 4 Pages

    However, in a bid to ensure effective and up-to-date evaluation of the companies performance, stability, liquidity solvency, profitability and also to paint a picture to aid better understanding of the companies financial concepts, position and performance, financial statistics and data were collected from the companies published reports, financial statements, credit and investment advisory services. Also, a comprehensive analysis of the organization's overall performance was identified using a combination of profitability ratio, liquidity ratio, performance efficiency ratio, Debt and debt leverage ratio and service marketability

    Read More

  • A Case Study Of Nike's Human Resource Management

    1033 Words  | 5 Pages

    A-Four support activities: 1- firm infrastructure and finance : -Strong brand, product, marketplace solution, delivery and support. (brand value from 35$ in 1973 to 10.7 billion in 2014 ). -Empowerment of top management –geographic structure. -Low debt, short term debt 2.9 billion, and long term debt 1.1 billion. Cash in hand 2.2 billion.

    Read More

  • Costume Discounter Case Study

    727 Words  | 3 Pages

    The largest aim is to serve the happy customer by providing best deal in their budgets. Company has set some strict portfolio for

    Read More

More about Business Level 3 Unit 2 D2 Evaluate The Financial Performance

Open Document