Can you please write me a conclusion that summarize the strengths ,weeknesses and recommendation for...

70.2K

Verified Solution

Question

Accounting

Can you please write me a conclusion that summarize the strengths ,weeknesses and recommendation for improvement for a company with those values.(mind the plagrism please)
image
image
image
image
\begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Income Statement } & \multicolumn{1}{c|}{2020} & \multicolumn{1}{c|}{2019} \\ \hline For the year ended Dec.31,2020 & BD '000 & BD '000 \\ \hline Revenues & 1061423 & 1029378 \\ \hline Less: Cost of sales & 920411 & 939158 \\ \hline Gross Profit & 141012 & 90220 \\ \hline Operating expenses & 70867 & 58990 \\ \hline Other income/(expenses), net & 2529 & 778 \\ \hline Net losses on financial assets & 19534 & 2666 \\ \hline Impairment (loss)/reversal on & & \\ trade \& other receivables & 2994 & 253 \\ \hline Earnings before Interest \& tax & 50146 & 28039 \\ \hline Finance costs & 40108 & 22458 \\ \hline Profit for the year before tax & 10038 & 5581 \\ \hline Tax & 283 & 202 \\ \hline Profit for the year after tax & 9755 & 5379 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline RATIO ANALYSIS & For 2019 & For 2020 \\ Current ratio & =444,861445,908=1.002 & =460,538403,048=0.875 \\ \hline Current Assets CA Current Liability CL & =2,408,2201,329,649=0.552 & =2,353,6961,274,143=0.541 \\ Total debt ratio total debt total assets & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline & For 2019 & For 2020 \\ \hline Asset-management ratios & & \\ \hline Receivables turnover ratio= Sales/Accounts receivables & 1029378/143424= & 1061423/119105= \\ \hline times in a year & 7.2 & 8.9 \\ \hline & & \\ \hline Profitability ratios & & \\ \hline Return on assets (ROA)=Net Income/Total assets & 5379/2408220= & 9755/2353696= \\ \hline & 0.22% & 0.41% \\ \hline & & \\ \hline Market value ratios & & \\ \hline Return on equity=Net Income/Total Equity & 5379/1078571= & 9755/1079553= \\ \hline & 0.50% & 0.90% \\ \hline & & \\ \hline Payout ratio & & \\ \hline \begin{tabular}{l} Dividend Payout ratio= Cash dividends/Net income \\ \hline (cash dividends paid from cash flow from financing \\ activities in the cash flow statement) \end{tabular} & 0.00% & \\ \hline & & 14.47% \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students