FINANCIAL STATEMENT ANALYSIS Assignment Example | Topics and Well Written Essays - 1250 words

FINANCIAL STATEMENT ANALYSIS - Assignment ExampleAnother part of the paper presents the soft interpretation of the quantitative results. That is, the interpretation of the companys ratio results and their significance. Lastly, a summary of the companys financial position as reflected by the analysis has been produced together with a suitable plan of action. The overview of Procter and Gamble The company, mingyd in the United States, is focused in manufacturing branded consumer products. The companys main intention is the provision of products and services that are of high quality and value to help improve the well-being of both current and future generations. The companys commissioning is formulated based on two objectives. That is, the profit maximization and shareholder wealth creation. The company has a widespread market covering more than one hundred eighty countries across the world. The company reaches the customer through the establishment of various outlets such as grocer y stores, Merchandisers, drug stores, membership club stores and the neighborhood stores. Currently, the companys financial accomplishment is still below the investors expectations. ... analysis, the following tools have been selected profitability measures, asset turnover, the inventory turnover, debtors accruement period, creditors collection period, liquidity measures, the analysis of ROE drivers, Common size analysis, the growth analysis, and industrial analysis. The profitability ratio shows the performance of a firm regarding its ability to generate income from the investments. The dexterity ratio indicates the ease with which a firm utilizes its resources in order to generate revenue. The liquidity ratio would indicate the ability of a firm to meet its short-run needs. The common size present the expression of financial statement items as a percentage of another key item. In other words, the expression of completely the balance sheet items as a percentage of the total ass ets. DuPont analysis presents the relationship between ROE drivers. The analysis is used to identify the level of performance of particular processes in a company. A companys growth analysis is the percentage change of financial items based on a base period. Finally, the peer analysis is the comparison between the industrial average performance and the performance of a company All the mathematical proofs are in the excel file (Beyer 88-156). analysis of the quantitative analysis The balance sheet analysis the total current assets decreased in the year 2009 as compared to the visualize in the year 2008. The figure decreased by $ 2,610,000. The decrease can be attributed to the decrease in the value of account receivables in that year. Secondly, the decrease could be because of the reduced amount of naturalize in progress. Thirdly, the decreased amount of finished goods also led to the decrease in the level of current assets. The shareholders equity decrease in the year by $