J&K Outfitters Ltd. Essay Example for Free

JK Outfitters Ltd. EssayThe organization I am going to palaver near is JK Outfitters Ltd. I leave alone be explaining the advantages and the disadvantages of victimisation symmetry analyse within the assembly line, by the care of using the balance analyse it will show the financial performance of the business as it can help the investors to gain the inside wellspringness of the company.Each ratio within the business plays a different potential e.g. The stock turnover ratio shows you how quickly a company sells and replaces the stocks which are the goods and materials that a business holds for the settle of resale. The advantage of using this stock turnover ratio will help the investors to make a closing on rather to invest in this business or no because it will show the health of the company. The other type of ratio I am going to talk about is the current ratio which provides the business amount of assets compared to its liabilities which shows the business ability t o pay its debts. With the help of this ratio the investors get the idea of will they get their money back if they will invest in that business.On the other side ratio fails to address the potential of the company as they only offer inside to the business present location as it wont give the future prediction of the business. For example, if the company is about to merge and derive large amount of capital the ratio will not reveal these new changes therefore ratios cannot be the only measurements investors use to assess companies value, because this numbers do not reveal other key breeding such as industry changes and economy forces.Another disadvantage I am going to talk about of using ratio is that some ratio might indicate the company is performing well while other indicates financial issues therefore investors need to assess multiple ratios to get the picture of the business stability which can help them to come to a conclusion rather to invest or not within that business. Rat ios are beneficial to some parties however not to the other, such as a confide might not consider giving a help or interest to the companies book to grocery store ratio however, the financial investors will evaluate its level of depth ratio to see if the company is expenditure of a loan.