Accounting for Management: Analysis of Horizon Oil Limited and Tap Oil Limited

Running head: ACCOUNTING FOR MANAGEMENT
Accounting for Management
Name of the Student:
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Author Note

1ACCOUNTING FOR MANAGEMENT
Executive Summary
The issue that has been presented in the question is that the analysis of a particular
company with the name Horizon Oil Limited and Tap Oil Limited has been carried out in order
to determine the particular fact as to which company is more profitable. Moreover, such a
purpose has been fulfilled with the help of the significant ratios like the profitability ratios,
efficiency ratios, liquidity ratios and stability ratios.
Furthermore, it has been found out that the Horizon Oil Limited is much more profitable
than the Tap Oil Limited in regards to profitability.

2ACCOUNTING FOR MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Issue.................................................................................................................................................3
Findings...........................................................................................................................................4
Comparison between Horizon Oil Limited and Tap Oil Limited................................................4
Analysis of the profitability ratios...............................................................................................5
Analysis of the Efficiency ratios..................................................................................................6
Analysis of Liquidity ratios.........................................................................................................7
Analysis of stability ratios...........................................................................................................8
Analysis of the profitability ratios...............................................................................................9
Analysis of the efficiency ratios................................................................................................10
Analysis of the liquidity ratios...................................................................................................11
Analysis of the stability ratios...................................................................................................12
Non-financial issue in regards to Horizon Oil Limited.................................................................13
Environmental issues in regards to Tap Oil Limited.....................................................................13
Recommendation and Conclusion.................................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................16

3ACCOUNTING FOR MANAGEMENT
Introduction
The issue that has been presented in the question is that the post the joining of the finance
and business consultation firm, Business Smart, the manager of the firm Mr. James Brown had
decided to take up a family leave. This has led to the preparation of a consultation report for an
important client, Company A.
This particular study aims to focus on the particular aspect of the selected company A
(Horizon Oil Limited) and the chosen benchmarking company, B with the particular name of
Tap Oil Limited. Furthermore, the essential ratios have been computed for the purpose of
evaluating the financial performance of the company and the related risks associated with the
business operations.
Issue
It has been further mentioned in the case study that Company A that is the Horizon Oil
Limited carries out the particular decision of appointing a new Chief Executive Officer. Thus
before the arrival of the new CEO the management of the corporate entity has decided the fact
that the assessment of the financial performance of the company and the particular risks faced
should be carried out. This is essentially done in order to execute the preparation of the financial
statements in an accurate way and the particular issues in regards to the performance of the
business can be potentially identified. Moreover, it has been further mentioned in the case study
that the particular Company A has been operating under public scrutiny due to the fact of high
carbon emissions and consumption of the required amount of energy. In order to resolve this
particular problem in regards to sustainability the members of the Board has been discussing the
considerable improvement in the sustainability reporting of the company by improving the