Table of Contents
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.
A company's annual report is the single most important way for it to convey itself to potential investors. An annual report will give lot of important information about a company.
Analysis of annual financials of an organization is important for an investor. When analyzed the annual report will answer the following questions
1. How well the company is doing.
2. Whether the company is making more money than it is spending
3. Management’s strategic plan for the coming year.
For an investor, basically it will give an idea to its investors where the company has been, where it is now, and where it’s going.
Typically an organization’s annual report includes the below 3 statements;
The balance sheet represents a record of a company's assets, liabilities and equity at a particular point in time.
The income statement measures a company's performance. The income statement presents information about revenues, expenses and profit that was generated as a result of the business' operations for that period.
Statement of Cash Flows:
The statement of cash flows represents a record of a business' cash inflows and outflows over a period of time usually the financial year....