Introductory Part of the ReportThis report provides a reflection of the performance of our company as it relates to the business the company is involved in. The information contained in this report is purely based on strengths and weaknesses of our company. Based on the purpose of which this report has been written, some information may not be extensively covered. It is good to clarify that in an event of such kind, the necessary documentary materials shall be availed at your requisition. This company has not been in operation for a long time.
This explains the reason some analysis in terms of historical information is limited to just a few months in the past. This is not meant to hint at the possibility that the company does not have the required capacity to raise and manage the finances it plans to raise. This is to let you know that regardless of the short period we have been in operation, the financial statements and projections indicate that the company is headed for greatness. Therefore, if our application for the loan is approved, we assure you that this company has the required resources to ensure that every part of the agreement is complied with. Analysis of the CompanyAs earlier on noted, in spite of the fact that this company has been trading for a short period, the company has a huge potential in terms of its financial capabilities.
This section is reserved for showcasing the strengths of this company. Sales Volume: The trend in sales volume of the company has been rising for the period of 24 months. For the first year, the sales volume grew from 410 to 10,800.
This growth in sales volume represents over 2534 percentage increase. This is a huge increase considering the fact that this is a new company. This is an indication that the potential of the company is great. The company had to overcome a lot of challenges that face new businesses to achieve these results. Some of these challenges include excess fixed costs during the first year of trading. Regardless of all these, the company has managed to overcome all these challenges to attain this sales volume. No of Orders: Another indicator of the company’s economic strength is the number of orders demanded over the period.
The growth in demand in number of orders indicates that the company has managed to meet the expectations of consumers of its products. In January, the company had only 3 orders for the entire month. At the end of the year, the company recorded 25 orders. This is quite encouraging considering that this is a new company. This represents a 700 percentage increase for a period of just 12 months. If this trend is something to go by, the company has the ability to perform even better than this in the future.
The increase in the number of orders over the period is a depiction of excellent strategic leadership of the company. Net Profits: This is also another indicator of the company’s financial capacity. The net profit figure is an expression of the management’s ability to cut down costs as much as possible while at the same time increase sales volume as much as possible. In January 2013, the company recorded net loss of 364. At the end of the year, the company had managed to turn around the loss recorded in January into a net profit of 1770.
This is very overwhelming. This increase in net profit represents an overall increase of over 594 per cent. A look at the second year of trading indicates that the net profit increased from 1770 to 2223. This represents almost 40 per cent increase in net profit. This shows that the company has managed to reduce the level of spending while exploiting avenues for increasing the sales volume.
The reason the company recorded a net loss at the beginning of the year in 2013 is because of the excess fixed costs.