Accounting and Finance for Decision making of Nanoco Group
The purpose of this assignment “Accounting and Finance for Decision making of Nanoco Group” is to evaluate the financial analysis and the positioning of the large multinational company that dressed the future growth and the image of the brand. Nanoco Technologies LTD. Is a UK-based nanotechnology firm that plans out from Manchester University in the year 2001.
The overall development of the company has been driven by Dr. Nigel Pckett as the Nanoco Chief Technology Officer. From the sensing to display, this platform can be customized rather than changed. For the QD synthesis, Nanoco company developed the proper seeding method that raised the advanced operations and determined the effective roles. In the year 2022, the share price of the company is about 0.55 which indicates the higher profess and the contrition of the business regarding the instant change.
This process can easily be scaled for the entire metal-free quantum dots to indicate the operations. The net revenue of the company in the year 2022 was 2467 million which affects the performance of the business and provides the proper strategic growth in the current and the possible activities related to the advanced learning abilities that indicate the major considerable activities in the change.
This platform technology can be customized by providing better techniques to the customers. The financial performance of the company increases from time to time referring to the advanced operations and taking the most valuable schemes in the current or possible changes that address the change. Given or examining the change, the current roles of the business are familiar with the most applicable plans that lead the change and address the greater resources.
The gross profit of the Nanoco group is about 2047 in the current year 2022 because it indicates the higher achievement from the net income and the sales of the company that addressed the possible outcomes and the long-term investment.
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Financial analysis of Nanoco Group:
Nanoco Group’s financial performance and its key position can be analyzed through the investment and the financial positions that improve the overall performance of the business and get the strongly committed terms in the detailed practices.
Profitability ratios:
Two profit margin ratios:
Gross profit margin:
Gross profit/revenue:
2022 year: 2,047 / 2,467 = 0.829
2021 year: 1,748 / 2,091 = 0.835
From the gross profit margin, the management of Nanoco Group will be successful in the year 2021. Because the gross profit margin of the year 2021 was 0.835 that was higher than the next year 2022. Due to the fewer expenditures on the expenses of the company, this situation takes place at valid terms and it provides the proper facilities for the net income and the revenue growth of the company.
Net profit margin:
Net income/revenue:
Year 2022: (4,697) / 2,467 = (1.903).
Year 2021: (4,395) / 2,091 = (2.246).
From the analysis of the net profit margin, in the year 2022, the strategic position of the Nanoco group became higher which raised the greater responses, and updated the best possibilities in the cleared and the possible activities toward the change. Given detailed values and addressing the possible change, in the year 2022, the net profit margin was (1.903).
Return ratios:
Return on assets:
Net income / average total asset:
Year 2022: (4,697) / 46,419 = (0.101)
Year 2021: (4,395) / 40,129 = (0.109)
In the return ratios, the return on assets indicates the overall outcomes from the assets of the company. In the year 2021, the value of return on assets was higher as compared to the recent year. Because the net investors and other assets in the balance sheet of the Nanoco company are higher. It indicates the long-term growth of the business toward the achievement of success.
Return on equity:
Net income / average total equity:
Year 2022: (4,697) / 42,389 = (0.110)
Year 2021: (4,395) / (3,525) = 1.246.
In the year 2021, there is an appositive outcome that appears from the return on equity because both equities, as well as net income, are the positive values that show the success of the company. 1.246 rate of the equity return helps to measure the long-term success of the business that classifies the change and addresses the familiar areas of the success toward the change or update the greater values in the most strategic facilities that addressed the reliable and the possible activities in the detailed values to integrate the actions.
Liquidity ratios:
Current ratio:
Current assets / current liabilities:
Year 2022: 46,419 / (638) = (72.75).
Year 2021: 5,836 / (2,415) = (2.416)
In the liquidity ratio, the quick ratio indicates that in the year 2021, the asset value and the debt ratio rose This’s why it was a positive year for the company by the nature that dressed the long-term facility and the overall growth networks.
Quick ratio:
Current assets – inventory/liabilities =
2022 Year: 46,419 – 174 / (638) = (72.484).
2021 year: 5,836 – 110 / (2,415) = (2.371).
From the year 2021, the company going to decrease its image. Because the overall inventory of the company decreases. From 174 to 110 there is a less amount of investor management that appeared to affect the entire performance of the business. It is one of the effective and applicable terms to address the change and take vulnerable actions.
Efficiency ratios:
Inventory turnover ratio:
Cost of goods sold / average inventory:
Year 2022: (420) / 174 = (2.413)
Year 2021: (343) / 110 = (3.118)
This ratio indicates that the actions and strategic position of a company become higher in the year 2022 due to the higher cost of goods sold and the average investor. The company invests a lot of amounts to manage the investee and takes new decisions which is why it gives a positive growth image.
Asset turnover ratio:
Net sales / average total assets =
Year 2022: 2,467 / 46,419 = 0.053
Year 2021: 2,091 / 40,129 = 0.052.
This rate indicates that the asset turnover becomes higher in the year 2022 because the total number of assets in this year becomes higher as 46419. Higher assets will classify the business roles and address the entire changes in the future goals. It is the most useful and applicable term to take the validity operations.
Solvency ratios:
Debt to equity ratio:
Total debt / total shareholder’s equity:
Year 2022: (4,030) / 42,389 = (0.095)
Year 2021: (3,525) / 36,604 = (0.096)
The solvency ratio indicates that the debt-to-equity ratio is valid increases the organizational performance and takes the valid areas of the business roles. In the year 2021, the debt-to-equity shareholder’s value will rise because there is less debt played by the shareholders of the Nanoco group in the applicable terms.
Debt to asset ratio:
Total debt / total assets:
Year 2022: (4,030) / 46,419 = (0.086)
Year 2021: (3,525)/ 40,129 = (-0.087)
In the year 2022, the debt-to-assets ratio becomes positive as it shows the total asset amount is higher rather than in other years. Indicating the greater preferences and determining the large resources, the current operations must be valid till the change as it leads to higher or sustainable performance. 46419 as the higher financial assets of the company grab the attention of the business through the clear or the most useful terms.
Investment ratio:
Working capital ratio:
Current assets / current liabilities:
Year 2022: 46,419 / (638) = (72.75)
Year 2021: 5,836 / (2,415) = (2.416)
The investment ratio indicates that in the year 2022, the amount of current assets and current liabilities will increase. The current assets of the company were 46419 in the year 2022 which helps to class the vital to operating the work in the cleared performance terms.
Price-earnings ratio:
Share price/earnings per share:
Year 2022: 0.55 / (1.52) = (0.36)
Year 2021: 0.55 / (1.44) = (0.38)
The price-earnings ratio of the year 2021 shows a positive value as compared to the year 2021. Due to the constant share price but the higher earnings per share, the price-earnings ratio increased in the year 2021 as compared to the next or forward years. Share price is set by the shareholders and the core committees of the company. The overall price-earning ratio helps to take the valid areas and address the most familiar activities in the cleared changes.
So, the financial ratio indicates that by the assets side of the balance sheet, the year 2022 is best for the Nanoco group but on the debt performance, the year 2021 is very suitable for higher financial growth as comparing the two recent years. It depends on the resources initiated by the exports and takes the valid roles to get the long-term vision in the detailed or the most classified terms.
By adding the change and taking the vulnerable data, the organizational changes can proceed in the valuable forms to address the change and take the valid sourced information. The analysis of profitability ratios, liquidity ratios, and other types of ratios directly influence the large operations that address the most familiar activities in the organized forms and take the valid areas of the success about the particular trends that take place at the given or the valuable situation.
Conclusion: Accounting and Finance for Decision making of Nanoco Group
To reach certain values and address the mailer changes, the overall applications can be useful to address the change and get strong reliable forms invaluable, and sustainable terms. All of these financial ratios indicate the greater responses and the long-term financial growth of the business toward the change as addressed the large intention of the business for gaining the detail and the large operations.
Nanoco Group is a large company that invested a lot of amounts to generate the overall practices and takes the cleared operations. By using advanced planning and getting instant change, the business roles can be classified in clear forms. It is a very useful term that classifies financial performance and gets the strong behavior as doing the change.
The assets return and the debt return ratio are the key ratios that classify the financial position of the company. In terms of adding the strategic image and determining the instant plans to address the valid areas, the business roles can be updated in the cleared forms. To determine the advanced operations and take the vulnerable actions, the business position must be high.
It is a useful; era that addresses the change and has greater resources through the strategic values in the cleared or the most applicable tools. Financial ratios help to understand the plans and examine certain areas in the valid or organized change as getting the cleared forms. Proceeding with the change and addressing the greater activities, the business values become valid until the Nanoco group improves the business operations and addresses the valid areas to lead the change.
The financial performance of the company helps to take the clear change as addressing the growth in terms of business roles to take the higher success. Investigating the organizational plans and taking the determined tools, the current plans must be valid in the change.
