Finance Management Essay Example | Topics and Well Written Essays - 4500 words - 1

Finance Management - Essay Example The paper also assesses loans for the investment proposal and two suitable alternatives have been discussed. Analysis of Current Financial Performance: Ratio analysis has been used here to identify the company’s position in terms of the profitability, efficiency, liquidity and financial structure. (Drury, 2005) Here the paper analyses the financial results of the four divisions over the past three years, based on which the business improvements in terms of the aid planning, control and performance management in the future have been discussed. The results are as discussed below: Profitability: Based on the profitability ratios, it has been noted that the Quality Product Division has seen an improvement in terms of the net profit margins. The company has moved from a loss to a profit of almost 3.36% which shows growth. Also the Return on Equity has also grown from a negative result in 2007 to almost10% which is close to the company’s required rate of return. The gross pro fit margin for the company however has been stable. Quality Products Division