Executive summary
This assignment is generally based on understanding and sighting the performance of the Country road. This report mainly concern with exploring and reinforcing the principles of financial and management accounting from a user perspective. It helps to emphasis on business reporting for decision making in a systematic, integrated and cohesive approach. The objective of this report is to provide end-user with a guide to sources of financial statement data to highlight and define the most relevant ratios, to show you how to compute them and to explain their meaning as investment evaluators. In this regard, we draw your attention to the complete set of financials for Country road Limited (CTY), a publicly listed Company on …show more content…

Analysis of Country Road’s return on equity ratio:
2010 2011
13.33% 16.86 %
The resent situation of country roads is good for the new investor because even company invest more in this year still they are making more profit. In addition the company total assets still going up at the same time earnings before interest and tax is also increasing. That is good sign of business. Thus Roe also increases which is value to the company (Birt et al., 2010)
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2.3 Gross Profit Ratio:
Profit margin ratio measures of profitability calculated as gross profit divided by sales revenue, reflecting the proportion of sales revenue that result in gross profit.
Analysis of Country Road’s Profit Margin ratio:
2010 2011
58.16% 61.35%
Of course, profit margin ratio reflects the gross profit in cents generated per dollar of sales revenue. Profit margin ratio has is increased over a year which indicate 2011 is better than previous year. It varies company to company some company need more at the same tome some company need less which is determine by sales volume and other major source of income (Birt et al., 2010).

2.4 Profit Margin:
Profit margin (PM) measure of profitability calculated as profit divided by sales revenue. This ratio reveals what percentage of sales revenue dollars results in earnings before interest and tax .It is depend up on expenses of a