Essay Examples on The College of Law Ltd

According to the assignment the Great Service Cleaning and Maintenance

According to the assignment the Great Service Cleaning and Maintenance company GSCM being in the business of contracting cleaning and maintenance services to office buildings presented its 2013 2014 Balance Sheet and Income Statement These financial statements are useful for investors creditors and other external users to determine key trends and support many important financial decisions We are going to perform a ratio financial analysis to establish significant relationships changes and trends Reviewing trends and common size analysis can help us give an access to perform a financial ratio analysis of the given company by measuring its profitability gross profit margin profit margin return on assets return on equity short term liquidity current ratio and long term solvency debt ratio First we consider the profitability of the company by comparing information with relevant benchmarks in the income statement the summary of a company's profit or loss during 2013 2014 given a period of time to track revenues and expenses For example the service contract revenues have increased in 2014 by 54 in comparison with 2013 and gross profit by 64 respectively see attachment Gross profit ratio is gross profit expressed as a percentage of net sales and is computed as gross profit divided by net sales In 2014 it is 22 65 generating about 23 cents for every revenue dollar and in 2013 it is 21 25 although according to CSIMarket 2017 the average industry rate is 55 62 It shows that company remains reasonably stable from one period to the next 

2 pages | 468 words