1. Executive Summary 2
2. Introduction 3
3. Background of the company 4
4. Financial Analysis 5
4.1. Financial Statement Analysis 5
4.1.1. Balance Sheet 5
4.1.2. Income Statement 5
4.1.3. Cash Flow Statement 6
4.1.4. Equity Statement 6
4.2. Ratio Analysis 7
4.2.1. Liquidity Ratio 7
4.2.2. Profitability Ratio 8
4.2.3. Activity Ratio 8
4.2.4. Coverage Ratio 9
4.2.5. Other Ratios 9
5. Future Outlook (2014-2015) 10
6. Reflective report 11
7. Conclusion and Recommendations 12
7.1. Conclusion 12
7.2. Recommendations 12
1. Executive summary
Analyzing financial statements is an important part of decision making because valuation of profits and losses statements are the most important drivers in business. They are used to diagnose weak spots in the current strategy in an internal perspective and play a key role in making decisions to mitigate against such losses and helps in achieve it long term objective
For external stakeholders and decision makers, reviewing the components of financial statements are important in determining the situation at the company.
The objective of the report is to analysis the components of the annual financial report of an organization. I have taken M/S Bucher Industries AG’s annual reports from 2009 to 2013 to analyze the organization standing in terms of financials.
Detailed analysis of financials including their statement, Ratios, Dividends etc. has been carried out to understand the financial position of the Bucher Industries. The analysis and summary of this report will be useful for ease of decision making in investment/ expansion/ dilution and for the financial planning of upcoming years to the management.
... middle of paper ...
Kasper Meisner Nielson (2010) Corporate Finance I ‘Budgeting, Finance and Valuation’. Bookboon Publication
Kasper Meisner Nielson (2013) Corporate Finance II ‘Budgeting, Finance and Valuation’. Bookboon Publication
Larry M. Walter, Christopher J. Skousen (2001) ‘Principles of Accounting Processing’, principlesofaccounting.com 2001
Lawrence J. Gitman ‘Principles of Managerial Finance’: Pearson Education. Available at: http://wps.aw.com/aw_gitman_pmf_12/85/21793/5579249.cw/.
Michael C. Thomsett (2011) ‘A Practical Guide to Annual Reports’. Jaico Publishing.
Pamela Peterson Drake ‘Financial Ratio Analysis’, reading prepared for James Madison university. Available at http://educ.jmu.edu/~drakepp/principles/module2/fin_rat.pdf.
Paresh Shah (2012) ‘Financial Accounting for Management’. Published by: Oxford University Press, 2012
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- History Enager Industries, Inc. (“Enager”) is a young company with three major divisions: Consumer Products, Industrial Products, and Professional Services. The oldest division is Consumer Products and it designs, manufactures, and markets household items that are primarily used in the kitchen. The Industrial Products division manufactures one of a kind tools that are made to order that meet a company’s required specifications. Lastly, the Professional Services division provides land planning, landscape and structural architect, and an engineer-consulting firm.... [tags: Enager Industries Case Analysis]
858 words (2.5 pages)
- Performing a financial analysis of a company allows an investor or creditor to fully understand the make-up of that particular company. For Pepsi Co, Inc. and The Coca-Cola Companies the below vertical and horizontal analysis along with selected ratios provide details on each company to allow comparison between them. Pepsi Co, Inc. shows a great deal of assets and property ownership while The Coca-Cola Companies net revenue is lower their net income is higher. The Pepsi Co, Inc. has more assets than the Coca-Cola Company, but more of their assets are owned by creditors.... [tags: Financial Analysis, Financials, economics, ]
1757 words (5 pages)
- Evaluating a company’s financial condition can be done by looking at its profitability or its ability to satisfy long-term commitments. These measures can be viewed through an analysis of a company’s financial statements, including the balance sheet and income statement. This paper will look at the status of Scholastic Company’s (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial ratio calculations and an analysis of the notable trends.... [tags: Financial Analysis]
2133 words (6.1 pages)
- Analysis of Cooper Industries OVERVIEW: Cooper Industries is a broadly diversified manufacturer of electrical and general industrial products, and energy related machinery and equipment. The company operates in three different business segments with 21 separate profit centers. These segments include electrical and electronic, commercial and industrial, compression, drilling and energy equipment. The product line is consisted of cheap fuses to $3 million compressor tribune sets along with products such as hand tools and light fixtures.... [tags: Cooper Industries Business Management Essays]
610 words (1.7 pages)
- Apple Inc: Financial Analysis Problem 1: Liquidity Analysis: Liquidty Ratios are used to judge short term solvency of the company as if it have sufficient working capital to pay off its short term obligation. Generally two measures of Liquidity Ratios are used by analyst to adjudge the liquidity position of the company: • Current Ratio • Quick Ratio/Acid Test Ratio 1) Current Ratio: Calculated as ratio of Current Asset and Current liability, this liquidity ratio is considered to be true indicator of a firm’s liquidity.... [tags: Financial Analysis]
897 words (2.6 pages)
- Part I: The Purpose of the Report and the Research Experience The main purpose of this report was to evaluate and research the financial information about Priceline during the past five years to evaluate the future developing of the company. In order to perform my research, I used Priceline’s 10 K report to get the financial information that was needed for this research. In addition, I used the company’s website where I found basic information about Priceline history and also other businesses that Priceline’s group owns.... [tags: Business Analysis, Financial Analysis]
2205 words (6.3 pages)
- Analysis of Industries In today¡¦s advancing technology state, one must be aware of information management systems and how they are shaping lives. Many industries are involved in information technology, and it is that technology which enables them to survive. Five major industries are health, services, manufacturing, finance, and retail. It is hard to say which one is affected more by technology because they all are in their own individual ways. The topics of IT they all share, but the way that information technology is used and introduced in each industry makes them different.... [tags: Technology Manufacturing Industries Essays]
3529 words (10.1 pages)
- Executive Summary Cumberland Metal Industries (CMI), which was historically one of the largest manufacturers of curled metal products in the country, has developed a new product. This product is a metal cushion pad which is to be used with large crane-pile driving activities. The cushion is to prevent the shock of the hammer from damaging the pile. CMI’s cushion pad is a “one-of-a-kind” product as there is nothing similar on the market today making comparisons difficult. Upon successful tests conducted alongside Colerick Foundation Company (Colerick), CMI now seeks to launch this new product to the market.... [tags: Business Management Financial Analysis]
1317 words (3.8 pages)
- Salem Telephone Company Financial Analysis In 2001, Salem Telephone Company created a subsidiary, Salem Data Services (SDS). The intent of creating SDS was to provide a revenue stream to subsidize the telephone operations and alleviate the need for a rate increase. Unfortunately, after 3 years, SDS has not met profit expectations. In fact, SDS continued to experience losses at the rate of $40-$45k per month making it necessary to reassess operations. While providing services to both internal and external customers, SDS found that their computer system had surplus capacity to support additional commercial sales.... [tags: Business Financial Analysis]
1279 words (3.7 pages)
- 1) The WACC is basically computed by the sum of multiplying the costs per component to its respective proportional weight (how much that company uses a certain cost of capital) [See Appendix 1]. As financial management is focused on the maximization of the stock price, an optimal structure of costs based on these three factors is needed. In SIVMED’s case, based on the definition of WACC, all capital bases should be included in its WACC. These include its common stock, preferred stock, bonds and long-term borrowings.... [tags: Financial Analysis Finance Accounting]
1403 words (4 pages)