Explain strategic and financial performance management
Explain strategic and financial performance management requirement
Taking three years’ of the published accounts (i.e. income statement, statement of financial position (balance sheet) and cash flow statement)
of a chosen company (which may either be the one you work for or ablisted company):
1. Provide an introduction to your company; for example, industry sector, size, competition: you should choose the salient information which you think presents the company to a potential investor who has not heard of the company before.
2. Present an analysis of the current situation of the firm, including its industry. You can use any tools, such as SWOT analysis,PESTLE, Porter’s Five Forces or similar to help construct your analysis.
3. Calculate financial ratios from each of the following sections used in class:
a. Profitability
b. Efficiency
c. Liquidity
d. Capital Structure
e. Investment
You should show your workings in the appendices (not part of your word count) and use tables or graphs to present your data in the main body of
your report.
4. Discuss the financial performance, position and potential of the company within the context of its industry, environment and economy. It is critical that you analyse and discuss, not describe the financial performance. In other words, it is not sufficient to state that the profit has increased or decreased over the period, but you need to find out WHY it has (or suggest a sensible explanation as to why). You can read the management reports in the annual reports, analyst websites etc., for the background on this.
5. You should conclude with a discussion of whether you would recommend that an investor invests in your chosen company and why.
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