Premium Essay

Financial Management Analysis

In: Business and Management

Submitted By somitkapoor2311
Words 4171
Pages 17
TABLE OF CONTENTS | | | | | | Introduction _____________________________________________ | 3 | | Company Overview_______________________________________ | 3 | | | Financial Ratio Analysis____________________________________ | 4 | 1. Liquidity Ratios________________________________________ | 5 | 1.1 Current Ratio_______________________________________ | 5 | 1.2 Quick Ratio_________________________________________ | 6 | 1.3 Working Capital_____________________________________ | 7 | | | 2. Profitability Ratios______________________________________ | 8 | 2.1 Gross Profit Ratio____________________________________ | 8 | 2.2 Net Profit Ratio______________________________________ | 9 | 2.3 Return on Total Assets________________________________ | 10 | 2.4 Return on Capital Employed___________________________ | 11 | 2.5 Return on Equity_____________________________________ | 12 | | | 3. Activity Ratios_________________________________________ | 13 | 3.1 Debtor's Collection Period_____________________________ | 13 | 3.2 Creditor's Collection Period ___________________________ | 14 | 3.3 Stock Turnover Period________________________________ | 15 | | | 4. Solvency Ratios________________________________________ | 16 | 4.1 Gearing Ratio_______________________________________ | 16 | 4.2 Interest Cover Ratio__________________________________ | 17 | 5. Market Analysis 5.1 Earnings Per Share Ratio(EPS)_________________________ | 1818 | 5.2 Price Per Earnings Ratio(P/E)__________________________ | 19 | | | Conclusion______________________________________________ | 21 | | | Recommendations________________________________________ | 22 | | | Bibliography____________________________________________ | 23 |
The aim of...

Similar Documents

Premium Essay

Financial Analysis Management

...Financial Analysis & Management Discounted cash flow techniques Discounted cash flow is a method used to evaluate a company based on the concept of time value of money, cash flows of the future are estimated then discounted to their present value, There are four discounted cash flow techniques which are; Net present value technique(N.P.V), Internal rate of return technique(I.R.R), Discounted payback technique and The profitability index technique (P.I) and every one of those techniques has its own purpose(Alfred, et al, 1971) DCF Advantages|DCF Disadvantages| · Theoretically, it’s the most rational method of valuation.· It depends on future estimations rather than historical results.· It focuses on cash flow generation and less affected by accounting practices.· It allows for the different business components to be valued separately or to value the whole business.· Ease of use· Convenient for both equity shareholders and debt holders.|· Accuracy of valuation highly depends on the quality of the assumption; any wrong inputs will result in wrong outputs, "Garbage in, Garbage out".· Any slight changes in inputs can cause large changes in the outputs.· Depends on the ability of user to predict future cash flows accurately or not.| (, valuation, 5/4/2013) The Discounted cash flow method is better than compounding cash flow because discounting cash flows gives us the Present value of the money, and the present value of money is more useful in......

Words: 816 - Pages: 4

Premium Essay

Financial Management Analysis

...1.0 INTRODUCTION The main objective of doing this project is to develop students understanding about Malaysia Capital Market. Malaysia Capital Market involve of shares and investment. This project also study the relationship between expected return, standard deviation, coefficient of variation, covariance, correlation, beta and capital asset pricing model. One of the financial objectives of business organization is to maximize returns on its investments and operations. Various components of returns make up the returns to proportional with the various types of risks borne and market conditions. Risk can be defined as the chance of financial loss in the common of basic definition. Assets having greater chances of loss are viewed as more risky than those with lesser chances of loss. While for the return obviously assess to risk on the basis of flexibility of return then we need to be certain for what return is and how to measure it. For a company, investments and shares are always being the common equity and fund for them cycling their business every day. They must have their expected return in gaining a profit and a given trust towards their clients. Investment is the application of funds with the target of attaining additional income or growth in terms of value. This project is to calculate the closing daily share prices of five companies from the main market and KLCI for year 2013. Our group has proposed five companies which are Magnum Berhad, Faber Group......

Words: 4827 - Pages: 20

Premium Essay

Analysis of Financial Management

...Board of Directors and Management Brand Values Products 3 4 5 6 -8 9 10 OPERATING RESULTS Summary of Key Operating & Financial Data 11-12 AGM & COMPANY PERFORMANCE Notice of 35th Annual General Meeting Chairman’s Message to Shareholders Report of the Board of Directors 13 14 ANNUAL REPORT 2014 15 - 19 1 Table of contents COMPLIANCE REPORT Corporate Governance Compliance Report 20 - 38 FINANCIAL RESULTS Auditors’ Report to the Shareholders Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Shareholders’ Equity Statement of Cash Flows Notes to the Financial Statements Unit-wise Working Result Schedule of Non- Current Assets Certificate on Review of financial statements PROXY FORM 39 - 40 41 - 42 43 - 44 45 46 - 47 48 - 80 81 - 82 83 - 84 85 ANNUAL REPORT 2014 2 Letter of Transmittal December 6, 2014 Esteemed Shareholders Bangladesh Securities and Exchange Commission Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Registrar of Joint Stock Companies and Firms Dear Sir or Madam, Subject: Annual Report for the year ended June 30, 2014 It is our pleasure to inform you that the 35th Annual General Meeting of Olympic Industries Limited will be held on Wednesday, December 24, 2014 at 10:00 AM at our 2nd biscuit factory premises at Lolati, P.S. Sonargaon, District Narayanganj. As such, it our pleasure to forward you our Annual Report together with our audited financial statements......

Words: 25973 - Pages: 104

Premium Essay

Financial Analysis Tools

...Financial Analysis Tools Nicola Maclin American Military University Managers should have the ability to assess performance of decisions they have made or intend to make, through structured and robust financial analysis. Managers need tools to forecast or predict as they struggle to make decisions on a daily basis to execute business strategy for the company. Financial analysis tools can drive projections and predictions in many areas of the business, from planning for production and distribution to decisions on a product or service. Managers can use these tools to both assess and improve business performance. Performance evaluation is an important component of managing a business. Managers need feedback to evaluate how well they have accomplished business strategy and managed key business process. Managers need to be able to link strategy with profitability. Financial analysis tools can help provide that much needed feedback. Financial data can be used to compute ratios analysis. These financial ratios gives managers the first look at the company’s vital signs and is used to assess a complete financial health and identify operational problems. Ratio analysis allows management to quickly and efficiently address concerns like: return on capital investment and the company’s profit margin. Ratio analysis can be an effective and useful management tool if ratios are calculated on items that are meaningful and where practical steps can be taken to make improvements in...

Words: 415 - Pages: 2

Premium Essay

What Is Financial Accounting

...What is financial accounting? Financial accounting is regarded as a professional in modern society. Most of the firms, especially the large ones, need it and have a particular department or team called accounting. In universities, financial accounting becomes a compulsory subject which BBA students must study. It is so well known that almost all people have heard of it. What actually is financial accounting? More specifically, what the main objectives or roles financial accounting has so that firms need it at a critical manner? Generally speaking, the purpose of accounting is to give relevant data or information that is necessary to make sound decision for the firms. And the main objective of financial accounting is to prepare financial statements such as statement of financial position, income statement, statement of owner’s equity and statement of cash flow. The preparation must be guided by generally accepted accounting principles, “GAAP” in short, of the physical location. The statements are then used to tell the external users the performance of the firm (Eisen, 2003). And the primary need for financial accounting, or sometimes called financial accountancy, is to minimize the principal-agent problems in organizations. This is to be done by evaluating and monitoring agents’ (manager) production and presenting the performance to people who interest in. In addition, financial accounting serves a lot of important objectives. It aims to understand the operation of the......

Words: 1054 - Pages: 5

Premium Essay

Week Two Acc 300 Dq

...What types of financial ratios are used to analyze financial performance? Financial ratios are categorized corresponding to the data they provide. The following terms are types of ratios used: 1. Liquidity ratios 2. Asset turnover ratios 3. Financial leverage ratios 4. Profitability ratios 5. Dividend policy ratios Are some more important than others? Why? Financial ratios give insight into an organization’s way of management and its financial state. Most ratios defined above can be evaluated from data made available by compiled financial statements. Which ratios are important to creditors, investors, and managers? Why? The importance of these rations allows a firm to analyze the market place and to measure the firm's financial data against those of other companies to steer away from unwanted financial problems- shutting down of operations. What is the purpose of financial statement analysis? According to (Robinson, Henry and Pirie, 2012), the purpose of a financial statement analysis is comprised of: • Evaluation of equity/debt investment/credit rating • Transfer of information • To use an analysis to develop a given financial statement inquiry. Robinson, T. A., Henry, E., & Pirie, W. L. (2012). International Financial Statement Analysis (2nd ed.). Hoboken, NJ: John Wiley and Sons, Inc.. What are some tools we might use to analyze financial performance? (2014) informs that analysis of financial performance can be: • SWOT......

Words: 332 - Pages: 2

Premium Essay

Financial Management - Analysis of Boeing & Airbus

...LONDON SCHOOL OF COMMERCE COLOMBO CAMPUS SRI LANKA MBA FOR EXECUTIVES Module Name: Financial Analysis and Management Student Name: Anuradha S. Illeperumaarachchi Module Lecturer: Mr. William Parrott Module Tutor: Mr. S. Skandakumar Date Submitted: 10/07/14 Total Word Count: 4193 Table of Contents 1.0 Introduction to the Report 3 2.0 Introduction to Airbus 3 3.0 Introduction to Boeing 5 4.0 Analysis of Financial Management 6 5.0 A comparative analysis of Airbus and Boeing 7 5.1 Airbus Group 7 5.2 Boeing 11 6.0 Examination of Key Stakeholders and Information Disclosure 14 6.1 Customers 15 6.2 Suppliers 16 6.3 Employees 16 6.4 Shareholders 17 7.0 Way Forward 18 8.0 References & Bibliography 19 1.0 Introduction to the Report This Consultant’s report has been compiled based on information gathered from the annual reports and financial statements of The Boeing Company and the Airbus Group (formerly EADS) for the year 2012. While analyzing the level of disclosure of both companies, this report aims to shed light on industry standards and critically examine whether the needs of key stakeholder groups have been sufficiently addressed in the chosen annual reports. Further suggestions for the improvement of these reports are also made in order to...

Words: 4592 - Pages: 19

Premium Essay

Financial Reporting

...Week 1 Financial reporting and its analysis has an important role in the information intermediaries (auditors, press, financial analysts) and financial intermediaries (banks, insurance companies, mutual funds) functioning. Information intermediaries and financial intermediaries use the information from the financial reports to investigate the investment opportunities and find the “good” ones (Palepu, Healy & Peek, 2013). The “lemons” problem explains the problem in identifying the “good” and “bad” ideas being offered in the market (Holod & Peek, n.d.). The “bad” ideas are valued by investors at an average level, as they know that in the market there are both types of ideas. This approach, unfortunately, leads to less attractive conditions of financing to the owners of “good” ideas; the proportion of “bad” ideas increases. The identification of “good” investments can be performed by following the four steps (Palepu, Healy & Peek, 2013): * Business strategy analysis * Accounting analysis * Financial analysis * Prospective analysis All the above analysis get the information from the financial statements, publically data available, from business application context that consists of credit analysis, debt analysis, general business analysis and other details on corporate business (Palepu, Healy & Peek, 2013). The business strategy analysis is a tool to form the performance expectations using industry data and competitive strategy data. Accounting analysis......

Words: 745 - Pages: 3

Premium Essay

Introduction to Financial Ratios and Financial Statement Analysis

...9-193-029 REV: SEPTEMBER 13, 2004 WILLIAM BRUNS Introduction to Financial Ratios and Financial Statement Analysis There is almost always a reason why someone picks up an organization’s financial statements and begins to analyze them. Lenders or creditors may be interested in determining whether they will be repaid money they have lent or may lend to the organization. Investors may be interested in comparing a potential investment in one organization with that of another. Employees may want to compare the current performance or financial status of their employer with earlier periods. Regulatory agencies often need to assess organizational or industry financial health and performance. Financial analysis is always based on a set of questions, and the specific questions requiring answers depend on who the financial statement user is and the reasons for his or her analysis. Financial analyses based on accounting information consistently involve comparisons. Amounts or ratios may be compared with industry norms, the same measurement in a prior period, the same measurement in a competitor’s organization, or with planned and budgeted amounts previously established. Figuring out which comparisons will best answer the questions motivating the analysis is one of the necessary steps in making the best use of accounting information. Financial ratios can help describe the financial condition of an organization, the efficiency of its activities, its comparable......

Words: 951 - Pages: 4

Premium Essay


...Business Analysis and Valuation Report Prepared By: Version # Updated on ------------------------------------------------- Acknowledgments ------------------------------------------------- If applicable, include acknowledgement to contributing individuals: ------------------------------------------------- ------------------------------------------------- Analyst’s Name | Number | E-Mail Address | | | | Document Name | | Date Created | | Milestone 1 date submitted | | Milestone 2 date submitted | | Milestone 3 date submitted | | Finalization date | | | | | | | | REPORT VERSION RECORD The Business Analysis and Valuation Report is a managed document with tracking of versions, changes, and release dates for each of the three milestones. Version Name | Version Number | Date | Author(s) Name(s) | Change Description | | | | | Document created | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Milestone versions of the report are issued including the complete document with the sections completed to date to reflect the work to date by the analyst team. The milestone versions of the document are authorized for release only after the analyst’s signature has been obtained. Milestone 1 PREPARED: DATE:___/___/___ (for acceptance) (, signature) POSITION: ___ Milestone 2 PREPARED:......

Words: 2600 - Pages: 11

Premium Essay


...For Business & Leadership | MBA Class Of 2016 | Weekly Schedule for September 22nd till September 28th , 2014 |   |   |   |   |   |   |   |   |   |   | Term I - Week Two | Monday September 22nd | | 08:30 – 08:55 | Group DiscussionFinancial Reporting & Analysis I Break Out (1-6) | | | 09:00 – 10:30 | Financial Reporting & Analysis I Dr. Zeeshan Ahmed Venue (Lecture Room 1) | | | | Topic : 1) Long lived assets and their amortization | | | | Case : 1) Depreciation at Delta and Singapore Airlines | | | | Reading : 1) Long-lived Fixed Assets | | | 10:30 – 10:45 | Tea Break | | | 10:45 – 11:10 | Group DiscussionMarketing Management I Break Out (1-6) | | | 11:15 – 12:45 | Marketing Management I Dr. Jawaid Abdul Ghani Venue (Lecture Room 1) | | | | Topic : 1) Brand Extensions | | | | Case : 1) Flare Fragrances | | | | Reading : 1) Ch 7: Identifying Market Segments and Targets | | | 12:45 – 13:45 | Lunch & Prayer Break | | | 13:45 – 14:10 | Group DiscussionManagement Practice Break Out (1-6) | | | 14:15 – 15:45 | Management Practice Dr. Rizwan Amin Sheikh Venue (Lecture Room 1) | | | | Topic : 1) How to Create Motivation in Organizations | | | | Reading : 1) HBS Note: The Motivation for Creativity in Organizations | | | 15:45 – 16:00 | Break | | | ......

Words: 641 - Pages: 3

Premium Essay

Term Paper

...Introduction: Financial Statement Analysis is used by interested parties such as inventors, creditors, and management to evaluate the past, current and projected condition and performance of the firm. Its analysis helps user make better desiccations. Ration analysis is the most common form of financial analysis. It provides relative measures of the firm’s conditions and performance. Horizontal analysis and Vertical analysis are also popular forms. Horizontal analysis is used to evaluate the trend in the accounts over the years, while vertical analysis, also called a common size Financial Statement discloses the internal structure of the firm. It indicates the existing relationship between sales and each income statement account. It shows the mix of assets debt that produces income and the mix of the sources of capital, where by current or long-term debt of by equity funding. Financial Statement Analysis prepared for the internal auditors, Many different financial measures are used to analyze financial statements and rank the performance of competing investment opportunities, including growth in sales, return to stockholders, profit margin, and return on equity. These are just four possible measures considered and evaluated by investors and creditors. Financial statements presented in various formats to help facilitate analysis. A classified set of financial statements groups items with similar characteristics together. Groupings include categories such as current assets;......

Words: 2258 - Pages: 10

Premium Essay

Sec 10-K Financial Statement Analysis Project

...SEC 10-K FINANCIAL STATEMENT ANALYSIS PROJECT Click Link Below To Buy: SEC 10-K FINANCIAL STATEMENT ANALYSIS PROJECT (Wallmart and CA, Inc,) 10 K – SEC Analysis Project A written Case Analysis is required for this course. The project is expected to consist of comprehensive and relevant responses to all the requirements of the Case Analysis. Requirements of the Case Analysis, which require computation, must be prepared using Microsoft Excel or Word or both and all the work must be presented in a detailed manner. Requirements of the Case Analysis which require a written response are expected to consist of an introduction, well-referenced body with appropriate headings and sub-headings, conclusion and reference list. APA style is required. Completed papers will typically be 4-5 pages in length and must read as a well-edited, professional paper. All papers will be typed, double-spaced, spell-checked, grammar-checked, and prepared in APA format. Go the SEC website 1. Click on “Company Filings” , then click on “Company or fund name, ticker symbol, CIK ….” 2. Type in the CIK (or company name). (Sometimes there may be multiple options available; use your judgment, and click on the right link). 3. Once you get the list of forms filed for the company, type “10-K” in the Form Type box. Now, only Form 10-Ks filed will......

Words: 566 - Pages: 3

Premium Essay


...Assignment On Financial Analysis & Control Submitted To: Umme Hanna Airin Ara Acting Head of Finance Department of Business Administration Stamford University Bangladesh Submitted By: Md.Nazmul Hasan ID: BBA 031 11119 BATCH: 31(P) Program: BBA Course Title: Financial Analysis & Control Course Code: FIN- 434 Stamford University Bangladesh Date of submission: 17th November, 2011 The Demand for financial Statement Information: * Introduction Financial statement is the product of a diverse set of demand and supply forces. Financial statement information is needed to facilitate decision making to facilitate the monitoring of management or to interpret contracts or agreement that includes provisions based on such information. Parties demanding financial statement information A. Shareholders, Investors and Security Analysts: Shareholders and other investors of corporation these parties range from individuals with relatively limited resources to large, well endowed institutions such as insurance companies and mutual funds. These decision made by the parties include not only which shares to day retain, or sell, but also the timing of the purchases or sales of those shares. In an investment focus, the emphasis is on choosing a portfolio of securities that is consistent with the preferences of the investor for risk, return, dividend yield, liquidity and so on. In that...

Words: 3641 - Pages: 15

Premium Essay


... Spring 2014 T TH Financial Analysis and Management Dr. Kamal M. Haddad COURSE OBJECTIVES Fin 423 is designed to develop critical thinking at the individual level, and problem solving competencies at both the individual and group levels. Teamwork and group problem solving are stressed. The course provides a thorough overview of financial analysis, including relevant modern theory and practical applications. Topics include financial statement analysis, financial planning, principles of valuation, capital budgeting, capital structure, and issues in financial policy. The course gives students opportunities to apply financial theory to analyze real life situations in an uncertain environment with an incomplete data set. It is integrative in nature, with special attention to the integration of theory and managerial judgment in the process of making financial decisions. BSBA Goals BSBA students will graduate being Effective Communicators, Critical Thinkers, Able to Analyze Ethical Problems, Global in their perspective, and Knowledgeable about the essentials of business. This class contributes to those goals through its student learning outcomes. LEARNING OBJECTIVES * Use Financial Statements to evaluate firm performance. * Project Financial Statements (B/S, I/S, budgets, etc.). * Use Financial Statements to obtain Cash Flows for......

Words: 5498 - Pages: 22