Financial Ratio Analsis in Managerial Accounting
Table of Content
TABLE OF CONTENTS I
EXECUTIVE SUMMARY II
I. INTRODUCTION 1
i. Background: ii. Framework: iii. Financial Statements: iv. Analyzing Company Accounts
v. Ratio Analysis
II. MANAGEMENT ACCOUNTING 3
i. The Objectives of Management Accounting: ii. Scope of Management Accounting: iii. Functions of Management Accounting: iv. Advantages of Management Accounting:
v. Limitations of Management Accounting: vi. Tools and Techniques:
III. INTRODUCTION TO FINANCIAL RATIOS 8
i. Financial Ratio Analysis: ii. Users of Accounting Information:
IV. DESCRIPTION AND DETAIL OF THE COMPANY – SRI LANKA TELECOM 14
V. ANALYZING THE VARIOUS KINDS OF RATIOS WITH THE COMPANY FINANCIAL STATEMENTS 15
VI. ANNEXTURE 21
(FINANCIAL STATEMENTS OF SRI LANKA TELECOM – YEARS 2003 & 2004)
EXECUTIVE SUMMARY
This scrutinized study is written, based on the annotations gathered from the Financial Statements taken from the Annual Reports of the company – Sri Lanka Telecom of the years 2003 & 2004. The introduction portrays the background and framework of Annual Reports, Financial Statements, Company Accounts and Ratio Analysis. Beginning with a description about Managerial Accounting, this paper also examines features concerning Financial Ratios and how and why it is significant in the evaluation of a company’s Financial Analysis.
CHAPTER - I
INTROUCTION
Background:
In this analytical report we will look at the financial interface of a company with the outside world, which is its reporting of financial results.
These are typically referred to as ‘annual reports’, with listed companies filing interim half – year reports as well. Companies’ ‘annual reports’ are prepared to the end of that company’s financial year, which is not necessarily either the
TABLE OF CONTENTS I
EXECUTIVE SUMMARY II
I. INTRODUCTION 1
i. Background: ii. Framework: iii. Financial Statements: iv. Analyzing Company Accounts
v. Ratio Analysis
II. MANAGEMENT ACCOUNTING 3
i. The Objectives of Management Accounting: ii. Scope of Management Accounting: iii. Functions of Management Accounting: iv. Advantages of Management Accounting:
v. Limitations of Management Accounting: vi. Tools and Techniques:
III. INTRODUCTION TO FINANCIAL RATIOS 8
i. Financial Ratio Analysis: ii. Users of Accounting Information:
IV. DESCRIPTION AND DETAIL OF THE COMPANY – SRI LANKA TELECOM 14
V. ANALYZING THE VARIOUS KINDS OF RATIOS WITH THE COMPANY FINANCIAL STATEMENTS 15
VI. ANNEXTURE 21
(FINANCIAL STATEMENTS OF SRI LANKA TELECOM – YEARS 2003 & 2004)
EXECUTIVE SUMMARY
This scrutinized study is written, based on the annotations gathered from the Financial Statements taken from the Annual Reports of the company – Sri Lanka Telecom of the years 2003 & 2004. The introduction portrays the background and framework of Annual Reports, Financial Statements, Company Accounts and Ratio Analysis. Beginning with a description about Managerial Accounting, this paper also examines features concerning Financial Ratios and how and why it is significant in the evaluation of a company’s Financial Analysis.
CHAPTER - I
INTROUCTION
Background:
In this analytical report we will look at the financial interface of a company with the outside world, which is its reporting of financial results.
These are typically referred to as ‘annual reports’, with listed companies filing interim half – year reports as well. Companies’ ‘annual reports’ are prepared to the end of that company’s financial year, which is not necessarily either the