Accounting And Financial Managements

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Accounting & Financial Management

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Executive summary
The company evaluation is made in the report for NCK and AX1 and in that, all of the
important elements have been covered. There is the identification of the objectives and then
the position and performance are evaluated in an effective manner. the calculation of the
ratios is made and by that, it has been determined that the company needs improvement the
performance and position both are maintained in a better manner by the NCK and it is
considered as the competitor. There are various areas in which the improvement will be made
and for that, the investment will be made in assets. This will be improving the liquidity
position of the business and also the utilization of them shall be made appropriately by the
management. This efficiency will lead to a positive impact on the turnover of the company.
There will be a reduction in the expenses which will be made and that will help in improving
the profits which will add to the further benefits. The shareholder returns will be increasing
and that will also be affecting the further funding which will be required in the company. All
of these actions will be incorporated by the management so that required improvements are
made and success is attained.

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Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................4
Objectives and long term plans..................................................................................................4
Financial ratios...........................................................................................................................6
Liquidity, Capital structure and asset management efficiency..................................................6
Operating profitability................................................................................................................8
Returns on shareholders’ investment.......................................................................................10
Capital expenditures.................................................................................................................11
Conclusion and recommendations...........................................................................................11
References................................................................................................................................13
Appendix..................................................................................................................................15

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Introduction
The analysis is required to be performed in the business by which all the areas and their
performance can be evaluated. In this report, there will be consideration of the AXI and NCK
which are the companies to be used for the evaluation purpose. The various aspects in
relation to them will be undertaken and that will help in making the proper comparison
among them. The issues which are involved will be identified so that the analysis can be used
to provide the management with the recommendation in this respect. The use of ratio analysis
will be made that will be covering various calculations. They will help in ascertaining the
financial position and performance of the business which is necessary to take further
decisions and make the situation better. There will be involvement of the return which is
made by the shareholders on the investment so that the same can be evaluated and the coming
period can be considered on that basis. The main capital expenditures which are made in the
business together with the source which is used to finance them will be identified in the
report.
Objectives and long term plans
The companies which are involved have been framed with a certain objective that will be
required to be achieved and for that various actions are taken. They are the main aim for
which the various policies and procedures are followed. In the NCK there are various short
and medium-term objectives that are set in order to attain something which is beneficial in
the long-run. There are various resources that are involved and it is important that they are
allocated in an adequate manner. For this, the objectives are set and the complete process is
carried in the best possible manner (NCK, 2019). There are several interests and other risks
which are involved with the company and it is highly required that they are eliminated. For