There were a few expenses in the year 2018 which reflected the same Employment

There were a few expenses in the year 2018 which

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There were a few expenses in the year 2018which reflected the same.Employment costs(42,702)72015201620172018-50,000050,000100,000150,000200,000190,706176,784169,146168,739SalesGross profit Net profit
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Occupancy costs(10,056)Other expenses(10,033)TABLE 2: Expenses in 2018(Source: provided)This contributed towards lowering the overall profits which was registered in the year. Thiscould not have been limited due to large workflow. 4.0 Ratio Analysis This process would involve the analysis of common items as per the years of 2016,17, and18.4.1 Return on Assets The profit is indicated in table 1 of the above report and this signifies its profit estimates as itis generated through the assets of the company. This will measure the efficiency rates of themanagement grossing better earnings for the period.a)Ratio calculationYearsReturnonAssets(Thenetincome/Average total assets)20160.45%20173.89%2018-8.12%TABLE 3: Return on Assets(Source: self-created)8
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201620172018-10.00%-8.00%-6.00%-4.00%-2.00%0.00%2.00%4.00%6.00%0.45%3.89%-8.12%Return on AssetsReturn on AssetsGRAPH 2: Return on Assets(Source: Self-created)b)AnalysisThe year of 2017 showed good average asset contribution for the company amassing about179525.5 thousand in “AUD”.This reflected a positive change of around 3.89%whichvastly improved from 2016. There was however a negative change of-8.12%in the year2018 primarily because reduction in the average total assets of around 91882.This wasbecause the organization suffered in their capital contribution.4.2 Return on Equity The shareholders often contribute an essential part of the organization and their addressableto the same is important (Kirklin et al.2018). This is calculated for isolating the debt of thecompany from the shareholder’s distribution. 9
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a)Ratio calculationYearsReturn of equity (Average Shareholdersincome/Net income)20162.16%20170.17%2018-0.12%TABLE 4: Return on Equity(Source: self-created)201620172018-0.50%0.00%0.50%1.00%1.50%2.00%2.50%2.16%0.17%-0.12%Return on EquityReturn on EquityGRAPH 3: Return on Equity(Source: Self-created)b) AnalysisThe shareholders amassed a rate percentage in the year of 2017by bolstering its capital andimproving profitability by 3.89%. There was however a steep fall in the year of 2018wherethe shareholders dropped their equity to about 89717thousand in “AUD”. The common10
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elements were the equity rate at the beginning of the year which could have improved in allthe years except 2018.4.3 Debt to Equity ratio The overall debt of the company needs to be managed in order to ascertain the position ofcreditors and capital structuring (Thomson, I., 2015). The company has in the years producedgood profits by implementing reasonable debts from outside investors. a)Ratio calculationYearsDebttoequity(Totalliability/Shareholder equity)20160.31%20170.66%20180.62%TABLE 5: Debt to Equity(Source: self-created)11
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2016201720180.00%0.10%0.20%0.30%0.40%0.50%0.60%0.70%0.31%0.66%0.62%Debt to equityDebt to equityGRAPH 4: Debt to Equity(Source: Self-created)b)AnalysisThe liabilities of the company showed an increased rate in the year of 2016and 2017with30,725and39,498 which showed consolidation on the capital through debts. The liabilityhowever dipped in the final year of 2018which showed improvement in the ratio percent asindicated in the table.
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