Financial Analysis of a Fashion Clothing COmpany essay

The various things that are needed to e understood is that these analysis forms the basis for budgeting and other various analysis. Introduction In the present case of Fashion Clothing it can be seen that the company had invested capital and started the operations with the purchase of the assets in the first half of the year. The second half is being presented in the below analysis of the company. It can be seen that the company had provided the projected figures based on which the research has been carried on by us.

The company’s operations are being presented in the financial statements in a ay that we can judge how profitable the company would be in the time to come. This report contains the various statements that would help us to understand the operations and profitability of the company affecting the wealth of the stakeholders. This would in turn help to understand the financial statement of the position of the company as a whole. (Lana, 2014) Financial Findings The statements that are prepared and we can observe from the same is that the company has a good amount of profits in the long run.

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This could help to understand the operations of the company The first six months after the announcement of the business operations had been a good one for the company. It can be seen that the operations of the business are quite profitable and helps the stakeholders to increase their value. The company had a good margin in these sex months to come. The sales are also good as being the new company and hence the margins are also very good.

The company could help to make sure that there is an enhancement of the value of the company as a whole. Keeping in mind the capital employed in the business the returns are very high and would lead to a great profit in the long UN. There is small issue of the debtors paying fast which had lead to the availing of overdraft facilities which would also bring up the interest cost that needs to borne by the company as a whole. This would help the company to reduce the money that is invested here.

Hence the company had done in profits and a bit less in the cash flows part but would surely improve in the time to come because the debtors will have trust and pay early in the near future. One more thing that needs to be looked is that the company is having god amount of stock in hand. So this needs planning as this would lead to the blockage of the capital for the company as well. Thus the company has a great potential to earn much but it would depend on the cost effectiveness they show for the company as a whole. Yogi, 2014) Analysis As part of the analysis it can be said the company is having good profit margins in the long run which would help the company to grow at a better and faster rate. The ratio that can be used to find the position of the company is the present current ratio of the company which is above two that is good signal for the company as a whole. It would help the company to grow in the long run and also sustain the liquidity of the company as a whole.

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