Financial Analysis of two companies- Iggle and Piggle Essay - 1

Financial Analysis of two companies- Iggle and Piggle - Essay ExampleThe cash inflows are the amount of uppercase that is coming into the business and cash outflows means the amount of money that is spent on the initiation of the business. This farm animal management is an essential part of the business and should be followed well.In the corporate world, the main aim on which the management focuses in terms of managing its finances is by achieving various goals that are set for a concomitant period. There are particular financial processes which should be followed by a firm to fulfill its value-making objectives. hither we will analyze and evaluate the business performance of the two companies- Iggle plc and Piggle plc, with the help of different techniques and tools of financial management. (Economy watch, n.d).The familiarity Iggle plc had a return on capital employed of 35% with the return on law of 20% which is determined by the ratio of net income to the total equity of t he union. The net profit margin of the company that is, the profit after interest but before payment of tax is said to be 15%. For the company, the average settlement period of debtors and the average settlement period of creditors are 78 days and 85 days respectively. The stock holding period of the company is 88 days with a gross profit margin of 44%. The company had 15 times of fixed asset turnover and a capital gearing ratio of 65%. The current ratio of the company, which is the ratio between current assets and current liabilities, is 81 and the acid test ratio or the quick ratio is 61. The company had a price earning (PE) ratio which is determined by the market price of shares per earnings per share of 6 and it shows the military rating of the company.The company Piggle plc had a return on capital employed of 20% with the return on equity of 10% which is determined by the ratio of net income to the total equity of the company.