The main objective improve customer base and market share the company

The financial ratio can be considered as important tool to examine financial stability and profitability of organization.

The profit margin ratio indicates ability of company to produce profit at given level of sales. In other words it indicates how much profit company is able to earn from sales. This ratio indirectly indicates ability of company to control cost. The higher ratio indicates that company has effectively controlled its cost and major part of sales revenue is converted in profit. In case of Cochlear Ltd the analysis of ratio over a period of 2017 to 2018 indicates that company is able to manage the ratio throughout the given period. The profitability of company seems stable subject to minor variations. In 2019 the ratio has further improved by 0.1. It indicates ability of management to control the cost and improved profitability.

The solvency ratio is used to analyze the dependency of organisation on debt capital and the ability of organisation to meet the financial debt obligation. It takes compares total liability of company to its equity capital. A lower debt to equity ratio indicates that the company is more financially stable and vice versa. In case of Cochlear Ltd the analysis of ratio over a period of 2017 to 2019 indicates that company is more focusing on equity funding and trying to reduce the debt burden. The solvency ratio is showing downward trend from 2017 to 2019. This indicates financial stability.

From the above analysis it can be said that company has improved its profitability and financial stability over period of 2017 to 2019.

1. It is reduced GHC emission by 14% from 2018 to 2019. The company has given more emphasis on renewable source of energy. It has helped the company to save non renewable resources and reduce GHC emission.

2. The company is also trying to reduce its wastage. It has started creating awareness and improvement in infrastructure to reduce the waste production.

$100

= 50%

= $450000 + $310000 + $395000

= $11, 55,000

3. Calculation of units to be produced to earn net income of $6,00,000 per year:

In order to earn net profit of 6, 00,000 the company has to produce 40412 units.

= $857143

The total contribution can be worked out with the help of following formula:

= Total contribution

Contribution margin ratio

No of units = Total sales revenue

Selling price per unit

1. Financial Perspective:

This perspective focuses on financial parameters of the entity. The objective is to draft and implement the strategy to improve financial performance by maximum use of resources. The main focused area in this perspective is cost, cost control, return on investment etc. This objective can be measured by increased in sales revenue, profitability and ROI. The examples of this component include cost saving, increased profit margin or addition of new revenue segment.

4. Growth and Learning perspective:

This component of balanced score card takes into account the human capital and its growth and learning process. The human capital is one of the important assets contributing in the development of business. This perspective takes into account the knowledge base, skill, training and leadership aspect of human capital of the organisation. The performance measured by employee turnover rate, investment in training, process improvement and new product introduced.

The fact of the data indicates that company is new to online segment. Hence it needs to arrange proper training of its employee. It is important to note that the marketing, product placement and delivery strategies significantly differ in online and offline mode of trading. In this case company, with the help of BSC, company can identify the learning and development requirement and its performance measurement target.

It is important to note that the all four components of BSC are interlinked with each other and are focusing on internal functions of the organisation. The effective use of BSC can help Manly Soles in proper development of strategy.