Financial analysis for Performance management Research Paper

Financial analysis for Performance management - look for Paper ExampleAfter the merger, there is a substantial join on in the companys capital as well as a decrease in the liabilities. It shows that the company position to diddle its financial pledge has improved after the merger.The equity multiplier calculated for the achievement before the merger shows that the company had funded a huge share of its assets using debts. After the merger, the company gets the additional capital that boosts its books, but still symmetry remains relatively high.The interest cover ratio for the period the merger shows the company was not in a position to pay it interests obligation, the company made a loss. In the period after the merger, the period finish 26 July 2014, the company is in a better position to cater for its interest obligations though there are more interest obligations as results of the increase in debts.The gross margin shows the fate of the total sales that is left out after a ccounting for the direct costs related to the deed of the goods and services. The gross margin ratio is within an acceptable range. There is increased in sales revenue enhancement in the period ended revenue in the financial year ended 26 July 2014 and request to a more efficient selling capacity.The inflexible asset turnover ratio calculated is seen to increase over the period. The higher ratio in the period after the merger shows that the efficiency in utilising the fixed asset to generate sales has improved.During the period that ended 27 July 2013, the company was in a genuinely poor position to meet its financial obligation. The company made a loss. After the merger, that is, the period that ended 27 July 2013, the company made a profit and can then be able to meet its financial obligations as and when they become due for payment. Therefore, the leaveer can now confidently trust to lend the firm without risking default. To the company management, I recommend they ensure t he profitability trend is