Financial Performance Analysis of Melody & Co.

Abstract

In the new competitive business age, private company sector is getting more competitive in Bangladesh. In this sector the most used financial statements are the balance sheet and profit and loss account where the balance sheet shows the financial position and profit and loss account shows the net profit or net loss of a company. Ratio Analysis deals with these statements. In this report to study on Melody & Co. financial statements for the five years then had to analyze and give significant comments regarding the changes in the financial position. Reviewing the profitability, activity, liquidity and solvency ratios, analyze vertical and horizontal analysis of balance sheet and income statement. To accomplish the study secondary data were collected from different sources, those are office files, records, publication obtained from library of the company, annual report of the company, different textbooks and materials. The objective of this report is to analyze the financial performance of “Melody & Co” by using Microsoft Excel to process financial statement information into horizontal and vertical shape. In this analysis all the positive and negative finding can be observer based on the financial performance analysis. Thought Melody & Co. is in profitable situation but they need to concentrate to increase the net profit ratio and return on asset ratio. The consistency of the financial department performance should be stable and higher which will help to get the maximum return for the company. Melody & Co. need to organize the training program with seminar, workshop etc. It will increase the ability of an employee and motivation them to find a better solution for better outcome. Analyzed the financial statements of The Melody & Co. to find out its ratios by using its past and current records. After preparing this report to know that analysis of financial statements through ratios helps to overcome the past flaws and make the future decisions and strategies. Therefore, it is very necessary for every organization whether the company’s size is to make financial statement and to analyze it by ratio.