Financial Performance Report

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Purpose

The purpose of this report is to outline or present financial performance of the Grow Management Consultant for the financial year 2018-2019 and then using that information to budget or plan for the future years. 

2018-2019 Profit and Loss Analysis

  • The business was highly profitable in FY 2018-2019 which was reflected by the value of gross profits and net profits on reports.
  • The total revenue or gross profit which company generated was $1,614,720 while the total cost sales was $127,644 which include new cost of E-book and conference costs. The net profit of the company was $797,125.
  • The gross profit margin is calculated when gross profit is divided by the sales revenue. For the cost of sales of $127,644 the relevant revenue is $1,614,720. The gross profit after deducting cost of sales from revenue is$1,487,076. So, the gross profit margin is 92.09%.
  • The net profit margin is calculated when net profit is divided by sales revenue, so its value is 49.37%. 
  • Company earn highest proportion of revenue from consulting and executive search service.
  • The area of highest cost for the business was salaries/wages 

Overall Business Performance:

  • The sales turnover from consulting is $1,410,720
  • The sales turnover from workshop is $45,000
  • The sales turnover from publishing is $15,000
  • The sales turnover from Executive search service is $144,000

Reasons

    • The reason why consulting generates high turnover because client prefer this service because consulting provide personalized or company focused approach.
    • The demand of workshops has been decreasing so less attendants providing lesser turnover.
    • There have been reasonable sales for E-book if we compare with the last where E book generates only $2000 sales and it is due to marketing.
    • There had been GDP growth from July 2018 to June 2019 from 0.3% to 0.6% at the end June 2019 which also increase the revenues or demand for consultancy service.
    • The 2018-2019 period was best for the businesses in Australia as overall Business confidence points increased from previous years. The summers of 2018-2019 shows the decline in demand for all the businesses.

Goals & Priorities for 2019-2020

  • Increase the sales for E book by investing more money on marketing in order to achieve target E-book sales of more than $10000.
  • Every Grow management consultants aims to achieve the profit margin of at least 43%. The company achieve the net profit margin of 49% this year which is more than they planned. In order to maintain this profit margin, the company need to invest money on marketing of conference so that it would increase sales and able to charge high amount for value added service which it is providing to its clients through the service of conference.
  • The company need to increase the sales of conference and E book so that it would cover the costs and increase profits. The estimated fixed cost particular conference with no attendant is $51000 so Grow Management Consultants need to make sure that it would easily bring at least 80 participants so that it would reach break even point if it is planning to charge $750 for single attendant. In future company must look for those venue with 120-150 people capacity so that company would earn more profits or would maintain annual 43% profit margin. 
  • More marketing has to be done on E books in order to cover its costs and make it profitable income stream like Conferences.
  • Key business periods are start and end of 2019-2020.

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