Financial Ratio Calculations
Terms of Reference 1. To determine whether Ted Baker is worth investing into 2. To compare financial ratios over the last five years 3. To identify problem areas and good signs for investment
I will then come to a clear conclusion about Ted Baker’s financial performance and make an informed recommendation to a potential shareholder.
INTRODUCTION
The report was requested by a potential shareholder,
Will be analyzing the liquidity and efficiency ratio (short term solvency), because it is important for the potential shareholder to know the ability of Ted Baker to meet its short term financial commitments and how it utilizes its recourses.
My ratio comparisons will be …show more content…
Uncertain economic climate also contributed to the 2009 down turn, however Ted baker managed to overcome the difficult environment.
Hence the increase of their profit 2010 (see appendix Group Income Statement for the 52 weeks ended 29 January 2010)
In comparison to the current ratio, which was a round 2.25 and the quick ration at 1, the difference is very small. They have both been static. This shows that the company’s current assets are not dependant on the inventory. Management is in control of the finances.
3 FIXED ASSET TURNOVER RATIO
This gives a rough measure of the

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