Executive Summary This report provides a brief analysis of the financial performance of the gild ACI(Advanced Chemical Industries Limited). of the years 2008 to 2010 using discordant ratio analysis. This ratios are calculated and interpreted so that a trend of the performance in particular areas might be observed. Graphical representation is also provided for better understanding of the quantitative content. The types of ratios discussed are liquidity, asset charge, debt management, profitability and stock-market ratios. The calculations are shown in expatiate in the appendics and the formulas are given within the ratio tables. The results of the entropy analysis show that liquidity has been a positive human face whereas weakness may be seen in asset management and profitability leaves more(prenominal) to be desired. The debt management has been seen to be more or less good and stock market ratios reflect strong performance, which is genuinely lucrative for investors. The report of finds the prospects the company in its current plant are positive from a risk perspective precisely return is not the strongest point for the company. The major areas of weakness conduct further investigation and remedial action by management.
It has been recommended to ameliorate the average collection period for accounts receivable and negotiate more flexible terms with the suppliers so as to reduce the battle between the geezerhood taken to receive payment and days taken for payment to fall due so that the company does not experience pull on liquidity. Assets also impoverishment to be better utilized. Limitations of the findings may be said that the selective information are not homogeneous for the years before and by and by the revaluations of assets was done which led to a large fluctuation of the ratios and may be judged as misleading. Â Introduction: The report is an analysis on the company |ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then East |... If you want to get a total essay, order it on our website:
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