Financial Position of Orient Button Ltd.

Abstract

I tried to analyze financial position of Orient Button Limited which is a garments accessories manufacturing company in order to value company performance and financial wellbeing. The report introduction gives an overview of the company and enlarges on the strategies implemented by the company. Overall company strategies were reviewed and considered along with the financial position analysis to come to a conclusion for recommendation. Ratio is a way of matching two or more quantities. Ratio analysis is used to review the financial achievement of a fiscal object. One popular ratio is the current ratio which is current assets divided by current liabilities. Sightseeing company‟s current ration, quick ratio, debtequity ratio, gross margin calculation. This affords an idea of whether the object can pay approaching bills. A ratio of less than one is a dangerous signal in that current bills are greater than current assets such as cash. The financial position analysis cover company‟s common-size income statements and balance sheets, comparative income statements and balance sheets, and various financial statement ratios such as liquidity, capital structure and solvency, return on investment, operating performance, asset utilization measures from year 2017 to year 2018. Conclusions are drawn from the above stated financial analysis as well as areas for improvement and investment recommendations.