Financial Analysis Essay Example | Topics and Well Written Essays - 2500 words

Financial Analysis - attempt ExampleOver the past five years the property Retail sort out lodge has had ups and downs cause in terms of its profits but the gap between the profits is very small, for example the remainder in profits between 2012 and 2011 is less than 1% this is an indication that the company maintains its standards of high performance everywhere the period.For example the percentage gross profit for 2010 and 2011 is 45.45%, this was seen in both years, an indication of financial health for the company although not at a very good standards, but it shows that the HRG Company is capable of paying for the usable expenses without financial constraints.There is an increase in percentage of profit margin from 0.11%to 0.055% in the year 2011 and 2012 on an individual basis this an indication that sales atomic number 18 increasingly contributing to the bottom line of the company.This measures how effectively a companys assets are being used to generate profits. It is majorly considered when evaluating the success of a business. A higher(prenominal) number reflects a advantageously managed company with a healthy return on assets.The percent rate of return on assets for Home Retail Group is 0.022% in 2012 although there is a slight increase, there is still a train for improvement in this area to ensure the company can remain competitive and continue to manipulate successfully.This shows the rate of return on equity capital employed and also measures the ability of a companys vigilance to realize an adequate return on the capital invested by the owners in a company. A higher number is preferred for this ratio.The percent rate of return on equity for Home Retail Group is 0.055% in 2012 and 0.0275% in 2010 there is a slight increase an indication that the management may not be effectively managing the profits earned based on the owners investment in the company.The management should hire budgets to track expenses on a regular basis, and identify those that are out of line. Assign