Ratio Analysis Coursework Example | Topics and Well Written Essays - 1500 words - 2

Ratio Analysis - Coursework Example Another reason is due to their dismissive approach towards law and regulations. This approach has resulted in an exceptionally good financial performance and efficiencies. Based on the available financial data of Tasso plc all the financial indicators are excellent with the exception of the liquidity. The most important thing in management is to find, evolve and assess involvement into possibilities that may be out there to develop and improve the company’s financial position. In so doing, the management can be able to assess various investment opportunities considering the risk that may be involved and assess the liquidity of the company. It is possible to determine the financial health of a company; this can be done by calculating the company’s financial ratios. Financial ratios are best used as a diagnostic tool to find resources of a financial trouble company. Financial ratios provide a fast and somehow straightforward approach to investigate the financial viability of a company. A ratio easily concerns one number seeming in the economic declarations to some other number seeming in the economic declaration ratios can split up in distinct assembly and each assembly can, at identical time, be sub-divided. In this paper, I will concentrate on liquidity, solvency, W orking capital management, profitability and asset efficient ratios, with this, people will be able to understand Tasso plc. Financial position and be able to appraise it. Liquidity ratios help management to know if the company can be able to undertake the day-to-day operations; this is determined by assessing the cash availability of the company. There are different methods to determine the liquidity of the company one of them is by using the current ratio. Current ratio gives as a quicker way to look at the current assets and current liabilities. They