Internship Report on Financial Performance Analysis of Toon Tech Ltd

Abstract

The company Toon Tech Limited was founded in in the UK in 2019. The company has grown as leader in the AI-based software solution as well as consultancy services. The company has enhance in operation rapidly that include the cross-border operation between the UK and Bangladesh. I was worked with the managing financial sector of the company mainly the cross-border financial transaction between the UK and Bangladesh as a part of my internship at Toon Tech. The report assesses the financial performance of the company from 2020 to 2024 five year through focusing on the key financial metrices including the liquidity, profitability, efficiency and solvency with the concentration to the challenges as well as opportunities associated with international transactions. The company has experienced impressive growth over the past five years. But the company also encountered major financial challenges. The analysis shows the declining trend in the key financial ratio. All of them show the financial struggle of the company in generating consistent profit. Moreover, the liquidity ratio of the company has shown a gradual decline through indicating the declining margins of safety in managing short-term obligations. The growing reliance on debt of the company is underling through the growing debt ratio and debtto-equity with the raising concerns about the financial risk connected with the expansion. The company has shown some development in the efficiency ratio despite these challenges specifically asset turnover ratio indicating the better utilization of assets for generating the revenue. However, the decline in the account receivable ration to turnover indicate the problems with cash flow at the time of handling the overseas delays and payments. The report also identifies several key areas for improvement, including enhancing profitability management, strengthening liquidity, optimizing debt management, and improving cross-border financial transactions. Recommendations are provided to help Toon Tech improve its financial health, reduce operational inefficiencies, and mitigate risks associated with cross-border operation.