Analyzing a business financially gives us a clear picture of how a business is performing.
The stability of a company as well as its viability and profitability can be assessed and measured by using financial tools and ratios, which are utilized by professional analysts, who prepare reports by taking financial information from the prospect company’s financial statements. These reports are then carried forward to the top management, on the bases of which further business decisions are made. In this Report we will be Analyzing the performance of BBC Worldwide Ltd, over the last ewe years using financial Ratios and the information taken from the company’s financial Statements.
The reason to choose this company for the Ratio analysis is mainly because of it being a I-J based company. The brand speaks for itself. Analyzing a company’s financial is definitely not an easy task, especially for a beginner, however we will be unleashing the truth in this case. Back Ground British Broadcasting Corporation is UK based principal public service broadcaster. It is the world’s largest broadcaster employing over 22, 000 people globally. The Meany’s has its global headquarters located in London, holding a key responsibility of providing public service broadcasting in The United Kingdom, Channel Islands and Isle of Man. The BBC operates under a royal Charter.
Its work is principally funded by an annual Television license fee, charged to all I-J households, companies and organizations using its services. The annual fee is annually set by the British Government and later agreed by the Parliament. Around the world The BBC world service provides direct broadcasting and re-transmission contracts through television, radio and online.
The cost of operating here is funded mainly by I-J government grants. Outside the I-J, the BBC World Service has provided services by direct broadcasting and re-transmission contracts by sound radio since the inauguration of the BBC Empire Service in December 1932, and more recently by television and online. Though sharing some of the facilities of the domestic services, particularly for news and current affairs output, the World Service has a separate Managing Director, and its operating costs are funded mainly by direct grants from the I-J government.
These grants are determined independently of the domestic license fee. According to the BBC official website, BBC has Invested Over a billion GAP in the United Kingdom’s sector making. BBC has been selling programmer around the world, which are produced by over 500 Independent I-J producers and groups, thus opening up a lot of growth and employment opportunities.
Moreover BBC employs over 22, 000 employees. This does have a significant effect on the economy. BBC worldwide was lately awarded the queen’s Award for Enterprise recognition and its positive trend in the earnings over the last few years. This year BBC worldwide determined a rise in its sales by 7% for mm GAP, giving a promising overall reference consecutively for the second year. BBC Generates profits inside The I-J, out of services provided to the whole world. This has a significant impact on the UK economy. Again BBC is one of the major tax payers in The I-J.
Analysis of the Financial and the Profitability Ratios 1 . Current Ratio helps us measure the ability of a company to pay off its short term debts using its most liquid assets. 1. 5 is the benchmark. If it’s less than 1 that means the company is not able to meet its current liabilities using its liquid assets.