1.

Stakeholders are those who are affected by a decision or change made by a corporation.
Corporate Stakeholders are the most important part of a corporation. Corporate stakeholders
include customer, government, communities, suppliers, investors and employees. They are the
reason for a corporation to continue their business.
Financial Ratio Analysis is important for a corporation because it clearly shows how a company
is performing in terms of asset, liabilities, revenues and expenses. Ratios gives us standardized
numbers, facilitate to comparison, strengths and weaknesses of other corporations. Rati o is very
useful in examining specific aspects of a corporation’s performance like liquidity, profitability,
leverage, asset management etc.
So, corporate stakeholders basically gets the whole idea of financial performance of a
corporation. The investors get the investment ideas like the future financial condition of this
corporation. They invest accordingly. The govt. regulate all the corporations so all the financial
data will be monitored by the govt. Customers and communities will also be interested in
whether they are doing or not. These information are important to suppliers as well because they
supply on credit. Also the industry comparison get easier for all the stakeholders. This is what
they mostly derive form financial ratio analysis.
 2.
Top-n’-shop’s current ratio is increasing which means the company has an increasing current
asset compared to current liabilities. This means, the company has a lot of cash reserved and they
are doing any kind of investment which is the reason for increasing current asset ratio. This is not
good for a company.
This company has also realized a drop in their total asset turnover ratio. This means, they are not
being to utilise their asset effectively which is a negative sign for the company.
They have also seen constant sales revenue, quick ratio and fixed asset ratio. From this we can
say that, the company’s fixed asset is constant and they have an increase in current asset only
excluding inventory. So all the current asset except inventory may increase. But there is a high
chance to increase the cash most. Ideal cash doesn’t give a good image for a company.
Therefore, the company should invest more cash and utilize all the assets specially current asset
more effectively.