Introduction

Our company “Ventures Investment Ltd would like to take this opportunity to bring in ourselves like one of the most excellent Investment firm in UK, with quality services provided along with controlled thinking, we are a well recognized company spread in most of the parts of UK. We have large segment of premium customers who have invested in our company, and at the same time our quality employees serving them and thriving for more to yield customer satisfaction. As Investors always try to benefit from the company, investment growth and share dividends. Investment strategies should be appropriately planned as always the market is volatile.

Venture Investment Ltd. is a widespread investment company of plan investment, investment administration, investment consultation, and investment scheduling and corporation management. We have plentiful funds, resources and strength along with professional management. We have stretched relationship with other investment company and with our competitors and at the same time very good rapport with the current government, which automatically develop us into a good reputation in investment industry. We have really strong ties with the national capital London as the real estate plays an important role in this city, our firm is privately held which works jointly with financial and development in many of our projects.

Our firm's abilities, schemes and practises in organising difficult financial transactions despite the fact that compliant varied partnership interests have allowed us to achieve customers respect as well as profits in this year.

The responsibility of our company

We provide four main categories of investment services, they are:

  • Increase of capital
  • Advise in amalgamation and acquisition
  • Perform securities deal
  • General advisory services

Mainly most of the major firms and individuals are active in each of these group.

Our products include mortgage, insurance and finance other then Investment.

All our well qualified employees are clean with their ideas as they have a in depth market knowledge when is the right time to invest and in which are the customers should invest their capital, however, due to recession in most part of the work starting in 2008 our customers have been in receiving end, but again the market condition has changed and now we encourage our customers to invest more so that they can maximise the profit. We always encourage our customers to not only concentrate in our investment product but as well to come across with our other product by always conducting seminars, providing gifts, advertisement and through personally sending letters.

Investment Definition

Generally in finance industry, the acquisition of a monetary product or erstwhile item of worth by means of an anticipation of positive potential income. We can say in simple words, investment means the use capital in the expectation of making additional wealth.

Financial Ratios

Company's performance indicates with the relationship of the financial ratios, such as ratios among the company's current assets and liabilities and between debtors and there turnovers. The important features of the ratios are to find out the profit and loss of the company for a set of period, and also contain significant information of the organization which includes balance sheet. With these ratios we can recognize the financial potential and weaknesses of the company.

While measuring the ratios we need to keep in mind that we should compare the ratios with different companies of same industry so that we can know how the company is performing within the industry.

Interpretation

Analysing the results and performance of the business to evaluate the results and compare the results with the past to find out how the organization is performing for a given time period. With this we can know the profits and the efficiency of the business.

Interpretation of Ratios

Profitability Ratios

With the profitability ratios we can find out whether the business is performing in profits or losses. We will be interpreting different ratios in profitability ratios with the help of the financial statement available of the organization.

Gross Profit

Gross profit of the organization for the year 2007 was 39.6103769% and 48.6166287% in the year 2008 this shows that the organizations gross profit has been increased from the previous year of approximately 9.0062518% through which we can identify that the company is producing more returns for their owners and investors. With this we can point out that the organization has the ability to acquire high cost from their customers and acquire fewer prices from suppliers.

Operating Profit

Organizations operating profit for the year 2007 was 32.5539011% and for the year 2008 was 46.6931244% it shows that the organization is also increased its operating profit from the previous year of 14.0492233% it shows how good the organization is organising its funds as well cost at the same time raise in trade prices and quantity.

Return on Capital Employed

The return on capital employed for year 2007 was 37.0966205% and 60.0576484% in the year 2008 with the above figures it says that the return on capital has been increased by 22.9610279% from the previous year. If the return on capital employed increases it is good for the shareholders as they get more returns. If this increases they can also distribute the profits to shareholders in the form of dividends and also they can use this money again to invest in the business to generate more profits.

Return on Owners Equity

In the 2007 the return on owner's equity was 8407.50436% and in the year 2008 it has gone up to 12797.3289% it had increased vastly from the previous year this shows the organization is making good returns to the investment of the shareholders.

Net Profit Margin

The net profit has been increased from 13.4456244% to 15.4898783% from 2007 to 2008 this will indicate that the organizations is also making good net profits. An increase in net profit shows the capability to sustain in the competitive era.

Turn Over Ratios

The turn over ratios are also increased from 2007 to 2008 it has increased by, the fixed asset turnover was 61.563561% in the 2007 and 85.2262238% in 2008, and the total asset has increased from 48.5852715% to 61.9035468% in the year 2007 and 2008. This shows how effectively the organization is making use of the investment in assets and also the efficiency of generating the sales from those assets. A low figure shows that the organization is not using its capital properly and vice-versa.

And they also are generating better profits on their fixed assets and total assets. The net profit on fixed assets has increased from 8.27760519% to 13.2014384% and the net profits on total assets were also increased from 6.53259313% to 9.58878406% from 2007 to 2008.

Liquidity Ratios

Current Ratio

The current ratio for the year 2007 was 2.34436167% and it has gone up to 6.02638973% in the year 2008 this means it has increased its efficiency in meeting the short term commitments without selling the assets and it also reflects to the situation of working capital.

Quick Ratio

Quick ratio has also increased in the year 2008 as it was 2.34436167% in the 2007 and in the year 2008 it has reached to 6.02638973% that means sufficient funds or liquid cash is available with the organization to pay to their creditors as on when required.

Working Capital

Working capital has increased from 89150000 to 182468000 from 2007 to 2008. The increase in working capital shows that the organization is having the ability to clear its short term liabilities.

Efficiency Ratios

Debtors Collection Period

The average collection period of the organization of their debts has been decreased from 156.114808 days in 2007 to 31.444942 days in 2008 this shows how quickly the organization is collecting their debts from their debtors. The more decrease in collection period the better for the organization.

Creditors Payment Period

The average payment period has been increased from 22.6983129 days to 27.9699612 days from 2007 to 2008. The increase in payment period tells us that they are taking very less time to pay their payments to creditors.

Solvency Ratios

Gearing Ratio

A comparison of company's borrowings between company and their shareholders can be figure out by calculating gearing ratio. The gearing ratio for the year 2007 was 170.330621% and for the year 2008 was 160.667717% the company is performing good when compare with the other companies in the industry.

Debt Equity Ratio

Debt equity ratio of the company in the year 2007 was 81098.7784% and in the year 2008 it was 82261.6027% the increase in debt equity determines that borrowings are making more involvement to capital than shareholders. This is not good for the organization and it may lead to problems if they decline their profits.

Interest Coverage Ratio

It measures the risk of finance in profits rather than value of capital. The ratio in 2007 was 2.41842369% and 2.64632168% in 2008. It signifies the amount of times interest payable is covered by earned profits by the organization. It will be better for the organization if the interest cover is more.

Ratios on Earnings

In 2007 the earnings per share was 0.245 and in 2008 it came down to 0.108. it has decreased when compare to the previous year. The share value is decreasing and they are losing the market value in the industry.

Earning Yield Ratio

The earnings per share was 90 in 2007 and 130 in 2008 the earning per share has increased in 2008 when compared to 2007. That means the earnings on share is good and the performance of the company is also good in the market.

Price Earnings Ratio

The price earning ratio was 1.11111111 in 2007 and in 2008 it came to 0.76923077 that means the market share has decreased in the current year.

Investor Ratios

Dividend per Share

As per the ratios the organization has paid fewer dividends to their shareholders when compared to 2007. In 2007 they have paid 0.4717769 as dividend per share where as in 2008 they have paid 0.11484944 as dividend per share. This may happen when they want to reinvest the profits into the business.

Dividend Cover

The dividend cover was 0.71300654 in 2007 and in 2008 it is 4.45648509 it increased in the year 2008 when compared to 2007. That means they are retaining higher profits with them it indicates that they are planning for the growth in the future.

Source: Essay UK - http://turkiyegoz.com/free-essays/finance/ventures-investment-ltd.php


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