CARRER

Originally posted by :saritha
"	I would like to reply following 3 items. 1 - Sales 2 - Purchase 3 - Expenses At first stance i will look awkward. But we have to convince them that we are going no in depth. Profit would be result of  Sales-Purchase-Exp.     hi i was asked d followin question in an interview...plz reply d answer for dis the co. turnover is in huge crores if u r asked 2 analyse any 3 items of balance sheet     /   p&l   a/c what items would u analyse and explain in depth what all points u would analyse	"

 

Well, Given that I can analyse from only 3 items.... 1) Check A/c receivables...... 2) Check total sales......... ( So that I can make out whether the company has a healthy cash flow ( The most vital component for solvency ) & is collecting rgularly from debtors....I am assuming that the practice of giving bills is outdated ) 3) Check Operating profit ( For the profit margin ) ..... An analysis of operating profit & sales will check if the Company is atleast doing the core business properly...... On a Sustainable margin...

Due to huge turnover we have test chek sales invoices and also find trend of sales in each month. We have to deteremin gross profit ratio, net profit ratio and also stock turnover ratio. If preceding turnover ratios are same as to current year ratio than we can satisfy that there is no much influence in current period. If there is considerable change in ratio than depth consideration should be given to sales price, stock and sales mix if needed.