Accounting and Finance for Managers

Running head: ACCOUNTING AND FINANCE FOR MANAGERS
Accounting and Finance for Managers
Name of the Student
Name of the University
Author Note

ACCOUNTING AND FINANCE FOR MANAGERS1
Executive Summary
Every organization whether it is any bank or company need to be properly evaluated and
analyze their financial data so that transparency be maintain and also get to know their
upsides and downsides of their performance. The purpose of making this report is to
understand the financial data and its statements importance. Further, to understand the
application to analyze the financial statement and the bank’s performance with the help of
vertical, horizontal income statement analysis and balance sheet of the bank. Several financial
ratios has also used in their evaluation. The organization here chosen for this report is
Commonwealth Bank, Australia to know their performance and their current status in the
market. However, in the report it seems that the bank has some good as well as some weak
points that further need to be analyzed.

ACCOUNTING AND FINANCE FOR MANAGERS2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Analysis Tools........................................................................................................................4
Income Statement...................................................................................................................4
Balance Sheet.........................................................................................................................6
Financial Ratios......................................................................................................................8
 Long Term Debt to Equity ratio..................................................................................8
 Total Debt to Equity Ratio (Gearing Ratio)................................................................8
 Liquidity Coverage Ratio............................................................................................9
 Return on Equity (Cash basis).....................................................................................9
 Earnings per Share.....................................................................................................10
 Capital Ratio..............................................................................................................10
Conclusion................................................................................................................................10
Appendix..................................................................................................................................12
References................................................................................................................................15

ACCOUNTING AND FINANCE FOR MANAGERS3
Introduction
Any company or an organization needs a depth analysis of their financial statement to
know and understand the financial performance of their company. This step helps the
investors as well to review the growth and development of the company through the
performance as well as the decisions they have taken for the benefit of the company. Here,
the managers of the company is highly responsible to present an accurate financial statement
of the company to their respective directors. So that the profit and loss of the company can
analyzed, any shortcoming in the financial performance would overcome with some
necessary measures and decisions by the company for the profit to their company as well as
to their investors (Ferrouhi, 2014). This report represents and overall performance of an
Australian organization. The organization chosen for this report is “Commonwealth Bank”
and the financial analysis of this Bank done based on some relevant income statements,
discussion on analysis on vertical and horizontal as well as different financial ratios status for
the recent years.
Overview
Commonwealth Bank is an Australian Bank, which provides several banking and
financial products as well as retail business services and institutional clients in different
countries. The bank serves other countries also such as New Zealand, Asia Pacific and UK.
The various banking products and services includes transactions and savings account, term
deposits, credit cards, loans such as personal and home loan, overdrafts, financial planning
services and also international online banking services (Commbank.com.au, 2019). Further,
the company assists the institutional and corporate clients in order to manage the cash flow as
well as the liquidity.