Internship Report on Financial Performance Evaluation Transcom Electronics Ltd. LTD

Abstract

This Report includes an internship report on financial performance of TranscomElectronics Ltd. Ltd.The internship had the commendable goal of assessing financial measures such as profitability,liquidity and operational effectiveness and providing an understanding on howsuch measureshavean impact on the performance and competitive advantage of the company in the electronics market ofBangladesh. Overview The report starts with a brief overview of Transcom Electronics Ltd.’ history, missionandpresent activities. It proceeds to financial analysis, which centers around a fewmajor ratios includingNet Profit Margin, Return on Assets (ROA), Return on Equity (ROE) and liquidityratioslikeCurrent Ratio and Quick Ratio. The results indicate a decrease in profitability over the past fiveyears,largely as a result of the increase in operation costs. However, the liquidity and asset turnover havebecome better, which also signifies that the company is in a better financial position now. The report highlights some critical issues encountered by the company in its operation, suchaspoorexpenditure management, excessive operational expenditure, and subutilization of the assets. Therespective conclusions refer to the recommendations to increase the level of profitability, includingimproving the management of assets, optimizing supply chain management, and savingprograms.The report also stressed that further innovation and market creation would be requiredtomaintaingrowth. Based on the above findings, the report concludes that the performance at TranscomElectronicsLtd.Ltd. is moving in the right direction. But there is more that it must do to battle costsandstreamline its operations – and to be competitive in the cut-throat electronics industry. It is through this internship report that the theories and knowledge that I have learnt in the lectureonFinancial Management for all this while is put into practice, which I believe throughout mycareerinfuture I will apply such knowledge in other business and financial related matters.