Report on the Financial State of Affairs of Central Pool and Taff View Assignment

Report on the Financial State of Affairs of Central Pool and Taff View Pool - Assignment Example The important factor for consideration both in the case of Central Pool as well as Taff View is that there seems to be an immediate need for the sales to be enhanced since there is gross underutilization of the operating assets. This is evidenced by the Ratios of Operating Profit to Operating assets and the Sales to Operating assets. As against the ratio of operating assets to operating profit of 21% in the case of Field Park it is 1.55% and 4.60% for Central Pool and Taff View respectively. These ratios are very low. Similarly, the ratio of sales to operating assets is only 1.10%... We can review this report together once you have gone through the basics. We can take up from there for the implementation of any suitable plan of action for the overall financial improvement of the units concerned. The important factor for consideration both in the case of Central Pool as well as Taff View is that there seems to be an immediate need for the sales to be enhanced since there is gross underutilization of the operating assets. This is evidenced by the Ratios of Operating Profit to Operating assets and the Sales to Operating assets. As against the ratio of operating assets to operating profit of 21% in the case of Field Park it is 1.55% and 4.60% for Central Pool and Taff View respectively. These ratios are very low. Similarly, the ratio of sales to operating assets is only 1.10% for Central Pool and 1.34% for Taff View, whereas the same ratio for Field Park is 2.80%. Comparatively the ratios for Central Pool and Taff View are poor. Similarly, the profitability of both Taff View and Central Pool is well below the comparative profitability of Field Park. This is quite obviously exhibited by the operating profit to sales ratio of both facilities. The operating profit to sales ratios stands at 1.41% for Central Pool and 3.44% for Taff View. These are very low as compared to the ratio of 7.60% for Field Park signifying the profitability of both the facilities is not up to the mark.