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MIX OF COMPANY FINANCIAL STATEMENTS
Introduction
Having a sustainable business requires effective financial management and planning. To judge different aspects of an organization, ratio analysis are used to address such areas as capital structure, liquidity, turnover, valuation and growth. Given that ratio analysis of the financial position of the organization enhances the financial statements usability and helps to identify the financial trends over time and measuring overall financial status of the business. For this reason, this report presents financial analysis of Yougov Plc and Taylor Wimpey Plc companies.
Accepting Yougov Plc. As Our Customer and Discussion on Sales Policies
The current ratio for the Yougov Plc. was 1.45 in 2015 and 1.39 in 2014 as indicated below
| Current ratio |
| | 2015 | 2014 |
| Current assets | 33.329 | 29.873 |
| Current Liabilities | 22.983 | 21.48 |
| | 1.45 | 1.39 |
A current ratio of 1 indicates that the company is able to meet its short term obligations when they fall due and thus the ability of the company to meets its obligation improved over the two years. It has high ability to meet it short term debt.
Given that Yougov Plc. is a service company its quick ratio and current ratio is the same as indicated below
| Quick ratio |
| | 2015 | 2014 |
| Current assets | 33.329 | 29.873 |
| Current Liabilities | 22.983 | 21.48 |
| Inventory | 0 | 0 |
| | 1.45 | 1.39 |
This shows that the comp any has a high ability of meeting its short term obligations without selling its relatively less liquid asset (inventory)……………………….