Financial Report Essay Example | Topics and Well Written Essays - 1500 words - 1

Financial Report - Essay ExampleThe objectives of this financial calculate comparison of the two companies are to enable us to find out the performance of each of the two companies in their markets of operations. This will be done by dint of the comparison and interpretation of financial ratios, which will inform the decisions as to whether in the company an employee can be rewarded, decisions of borrowing or not as surface as when the companies are due for expansion and so forth. This is all done through financial analysis, which is the selection, evaluation, and interpretation of Financial data along with other disposed(p) information to assist in investment and financial decision making.This analysis will involve the calculation, presentation, and interpretation of the financial ratios of both companies. The ratios to be considered will be grouped in terms of Liquidity Ratios, Profitability ratios, Activity Ratios, Financial Leverage ratios and Shareholders ratios. The liquidi ty ratios will provide information about the two companies to couple their short term and immediate obligations. On the other hand, profitability ratios provide the amount of income by each company of the sales they make. Activity ratios will press out the stakeholders of the companies on the companys ability to manage its assets efficiently hence its ability to operate into the future. There is also the Financial Leverage ratio, which provides information on the companys degree of commitment to its fixed financial obligations and their ability to satisfy such obligations. Lastly, we will look at the shareholders ratios of the two companies, which are aimed at describing to the shareholders the companys financial position in terms of the amounts per share of stock, held by the owners of the company (Kingfisher plc - Investors & Media - Results & presentations - Preliminary results for the year ended 28 January 2012. (2013, March 3).