Powerpoint Speech.docx

Thank you Geety! The table presented on the slide is the ratios that we have been using to analyse the financial Strategies of MT. We analyse the past 5 years of MT’s financial statement and forecast for the year 2014. Here is the profitability position of MT. As you can see the Gross profit margin shows an increase of 10%. This may be because of the alliance MT made in the year 2008. The return of capital employed shows a decrease in percentage. Since MT currently position itself as the market leader in the industry, it has to make continuous investment in innovation. That is why it takes time for it to recover its investment in a short term period. Moving to the financial position, MT has been able to manage its stock throughout the year. As MT deals with non- perishable goods, there is great possibility of stock tide up. This decrease in stock turnover may be because of the new products that MT introduces in that particular year and customers were not aware about it. Normally, a 1.7 – 2.0 ratio is encouraging for a business. MT current ratio has always been around 1.5 which is neither good nor bad. In 2013 MT liquidity ratio fell may be because of the major investment made and MT could not pay back its short term debt. For the past 2 years MT acid test ration has fallen below 1 which represents a danger. This may be because MT could not transfer its asset into cash.