Performance of the Earning Capacity of C Ryan

Prepared for: C Ryan

Prepared by: Cheryl Solomon, Accountant
Date: 30 June 2012
Introduction

What is the report an overview of?

What have the businesss results been compared to?
What are the ratios you will base your overview on?
Does the business apply internal benchmarks?

Analysis and Evaluation

Gross Profit Ratio

Definition of gross profit ratio.

What were the results of this ratio?
How does the ratio compare to your benchmarks poor, satisfactory,
good, etc
What does this mean about sales and cost of goods sold?
Has this ratio performance positioned the business to make and
acceptable net profit and return on equity.

Net Profit Ratio

Definition of the net profit ratio.

What were the results of this ratio?
In relation to the gross profit ratio has the
maintained/improved/decreased its performance?
How does the ratio compare to your benchmarks poor, satisfactory,
good, etc
What does this mean about other operating expenses
Does action need to be taken to keep other operating expenses to a
minimum?

Return on Equity Ratio

Definition of the return on equity ratio.

What were the results of this ratio?
Was it a satisfactory return and how does the ratio compare to your
benchmarks poor, satisfactory, good, etc
Compare to other risky investment to help determine management
efficiency.

Does action need to be taken to maintain or improve this ratio

Conclusion

Overall comment on the performance of each ratio.

Has the business positioned itself to perform well in the next financial
year?

Recommendations
Implementation of the following recommendations may help ensure that C
Ryan continues to perform to the same high standards:

What is your recommendation to improve the ratio (how); what will be

the effect of this recommendation and what should be the overall result
on profit and/or equity.