COOK CONSULTANCY LTD
Executive Summary
COOK CONSULTANCY LTD demonstrates strong financial health with ample liquidity, growing equity, and stable working capital, reflecting effective financial management and operational stability. The company is well-positioned to continue its growth trajectory, though ongoing monitoring of asset investment and cash flow planning is advised to maintain this positive outlook.
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This analysis is opinion only and should not be interpreted as financial advice.
COOK CONSULTANCY LTD - Analysis Report
Financial Health Assessment of COOK CONSULTANCY LTD (as of 31 December 2024)
1. Financial Health Score: A-
Explanation:
COOK CONSULTANCY LTD exhibits strong financial health with solid liquidity, positive net assets, and steady growth in shareholder equity. The company’s cash reserves are robust relative to short-term liabilities, indicating a healthy cash flow "pulse." While fixed assets are modest and depreciating, the overall balance sheet shows a stable and well-capitalized operation typical for a small consultancy firm. Minor caution is warranted due to a slight decrease in fixed assets and the small share capital base, but these are not signs of distress.
2. Key Vital Signs
Metric | 2024 Value (£) | Interpretation |
---|---|---|
Cash & Cash Equivalents | 105,759 | Strong liquidity; cash on hand exceeds current liabilities by 4.5x – healthy cash flow. |
Current Assets | 111,793 | Sufficient short-term assets to cover liabilities comfortably. |
Current Liabilities | 23,385 | Manageable short-term debt; no liquidity stress. |
Net Current Assets (Working Capital) | 88,408 | Positive working capital; good short-term financial cushion. |
Fixed Assets (Net Book Value) | 21,488 | Modest investment in long-term assets; declining trend but typical for consultancy. |
Net Assets (Equity) | 109,896 | Increasing equity from £83k (2023) indicates retained profits and business growth. |
Share Capital | 1.00 | Minimal nominal capital; common in small private companies. |
Profit and Loss Reserve | 109,796 | Indicates accumulated retained earnings, showing profitability over time. |
3. Diagnosis: What the Financial Data Reveals
COOK CONSULTANCY LTD presents a "healthy cardiovascular system" in financial terms. The company’s liquidity is robust, with cash reserves comfortably exceeding short-term obligations, suggesting no immediate cash flow issues or "symptoms of distress." The positive and growing net assets reflect consistent profitability and prudent management of resources.
The slight decrease in fixed assets (from £28.6k in 2023 to £21.5k in 2024) is not alarming but suggests depreciation outpacing new investment in equipment, which is reasonable for a consultancy business largely reliant on intellectual capital rather than physical assets.
The company has maintained compliance with filing deadlines and is not in any form of insolvency or liquidation, indicating sound governance and operational stability.
Overall, the financial "vital signs" suggest a business in good shape — well-capitalized, liquid, and profitable, with no immediate risk factors detected.
4. Recommendations: Actions to Enhance Financial Wellness
Maintain Strong Liquidity: Continue prudent cash management to sustain the comfortable liquidity buffer, especially as the business grows or considers new investments.
Monitor Asset Utilization: Evaluate the need for reinvestment in fixed assets to support business operations and growth, balancing depreciation trends.
Increase Share Capital (optional): While minimal share capital is common, consider increasing it if seeking external investment or to provide greater financial flexibility.
Expand Profit Retention: Continue building retained earnings to strengthen the equity base, providing resilience against economic fluctuations.
Financial Planning: Implement rolling cash flow forecasts to anticipate future liquidity needs and identify any emerging financial "symptoms" early.
Diversify Revenue Streams: Explore expanding consultancy offerings within related SIC areas (environmental and management consulting) to sustain growth.
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