Btec Business Unit 7 D2
Khadijatu Sesay
Unit 5,
D2: From your analysis in M2, decide which is the better performing business overall, and justify your decision.
In this task, I will be analysing the result of Turks Whole Sale and Turkish Great food, in terms of what business has performed better over the financial year. I will be using the financial ratios in both businesses, to critically explain which business has stood out in terms of profit, sustainability, and processes in their performance over the year.
Financial ratios asses, any aspect of the business, and is an integral part in the financial statement analysis of the business. Liquidity Ratios measures the ability of a company to pay off it short term debt. This helps the business assess whether it has sufficient cash or asset equivalent to be able to pay off it short term debt in due cause.
Profitability Ratios shows how profitable a business is in terms of measuring it overall performance. This ration helps to examine the overall profits made by the firm over the financial year, and helps us indicate whether the firm is …show more content…
Having said that, I will say both businesses are in a line of competing against each other which looks healthy for both businesses. However, base on the gross profit, it shows that Turkish Great Foods made higher sales than Turks Wholesale. This does not indicate that Turkish Great Foods performed better than Turks Wholesale. The Net profit margin which tells us how much profit a business has made after deducting all expense shows the Turks Wholesale has made more profit than Turkish Great Foods. In this case, I will say Turks Wholesale Ltd has performed better in terms of profitability. Also looking at the Liquidity Ratio, it shows that Turks Great Food has more assets in their possession which is a resource to generate more income for the
Unit 5,
D2: From your analysis in M2, decide which is the better performing business overall, and justify your decision.
In this task, I will be analysing the result of Turks Whole Sale and Turkish Great food, in terms of what business has performed better over the financial year. I will be using the financial ratios in both businesses, to critically explain which business has stood out in terms of profit, sustainability, and processes in their performance over the year.
Financial ratios asses, any aspect of the business, and is an integral part in the financial statement analysis of the business. Liquidity Ratios measures the ability of a company to pay off it short term debt. This helps the business assess whether it has sufficient cash or asset equivalent to be able to pay off it short term debt in due cause.
Profitability Ratios shows how profitable a business is in terms of measuring it overall performance. This ration helps to examine the overall profits made by the firm over the financial year, and helps us indicate whether the firm is …show more content…
Having said that, I will say both businesses are in a line of competing against each other which looks healthy for both businesses. However, base on the gross profit, it shows that Turkish Great Foods made higher sales than Turks Wholesale. This does not indicate that Turkish Great Foods performed better than Turks Wholesale. The Net profit margin which tells us how much profit a business has made after deducting all expense shows the Turks Wholesale has made more profit than Turkish Great Foods. In this case, I will say Turks Wholesale Ltd has performed better in terms of profitability. Also looking at the Liquidity Ratio, it shows that Turks Great Food has more assets in their possession which is a resource to generate more income for the