Financial Analysis of a Company

Financial Analysis of a Company

Contents

* Executive summary ………………………………………………………………………………………..3

* Introduction ………………………………………………………………………………………………….4

* Financial Results of ABC Ltd……………….....….…………………………………….………………..4

* Profit & Loss Statement (Income Statement)….…………………………………………….……...…..5

* Statement of Financial Position (Balance Sheet)……………………………………………….……....6

* Cash Flow Statement…………………..…………………………………………………………….…….7

* Key Performance Measures……….………………..……………………………………………………..8

* Financial Ratios Benefits & Limitations……………..…………………………………………………...11

* Conclusion and Recommendations……………………………………………………………………….12

* Bibliography………………………………………………………………………………………………….13

Executive Summary

This report examines ABC LTD financial condition and results of operations for fiscal year ended March 31, 2010. This succinct study comments on the anticipated financial performance in the first year of operations as well as and briefly discusses factors that may affect company’s future financial condition and makes other forward-looking statements. Analysis of key financial ratios are also included in financial overview of ABC Ltd, which help to determine company’s financial health; however it also looks into risk associated with heavy reliance on these measurements.

The key findings are:-

* ABC Ltd had achieved excellent financial performance in its first year of operations and delivered high return on invested capital to its shareholders (ROC 35%).

* However, issues relating to company’s cash-flow management have been addressed and require improvements in order to sustain strong financial position.

* Ratio analysis must be regarded as only ‘beginning’ of the analysis of financial performance, as their main purpose is to raise questions, which require further investigations and support in decision making.

Introduction

This report reviews ABC Ltd financial condition and...