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Critical Analysis of Systems Companies Financial Statements

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Critical Analysis of Systems Companies Financial Statements
INANCIAL RATIO ANALYSIS

Financial Ratio Analysis
William F. Slater, III
ACC 529 – Accounting for Managerial Decision Making
University of Phoenix
Week 5 Assignment for ePortfolio
Michael Greenen, C.P.A, C.F.P. - Instructor
July 1, 2003

Table of Contents

Table of Contents

Abstract

Introduction

Memorandum

Profitability of Sample Company Sample Company ROI for 2000 Sample Company ROI for 2001 Stock Performance

Activity of Sample Company

Leverage of Sample Company

Liquidity of Sample Company

What Is Necessary to Assess the Company?

What Ratios Have the Most Value?

What Other Factors, Beyond Ratios, Need To Be Considered?

How Would Your Assessment Criteria Change If The Company In a Different Industry Changes in Assessment Method

Conclusion

References

Appendix A – Sample Company’s Financial Statements from 2006 – 2008

Appendix B – Financial Ratio Analysis of Sample Company

Abstract

This research paper will evaluate Systems Company Plc using standard financial ratio analysis techniques and assess its strengths and weaknesses, and recommendations on how to improve the business. This is written in the form of an internal memo to the CEO of the company from the Management Accountant.

Introduction

This research paper will reveal the financial analysis techniques used to evaluate the financial performance of the Systems Company Plc, and evaluate the company’s performance and worthiness as an investment. The paper is divided into three sections. The first section is the memo, which is the main body of the paper. The second section, Appendix A, includes as a reference contains each of the sets of the four financial statements that show Systems Company’s performance from 2006 to 2008. The third section, Appendix B, contains the actual financial ratio analysis techniques, showing the company’s



References: Dun and Bradstreet. (2003). Retrieved at www.dunandbradstreet.com.

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