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.
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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
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