Finance Assignment 2022

Running Head: FINANCE
FINANCE
Name of the Student
Name of the University
Author Note

1FINANCE
Table of Contents
Introduction................................................................................................................................2
Background of Company.......................................................................................................2
Discussion..................................................................................................................................3
Recent Development in International Financial Environment...............................................3
International Financial and Risk Management Strategy........................................................4
Analysis of Ratios..................................................................................................................6
Conclusion................................................................................................................................10
Reference..................................................................................................................................11

2FINANCE
Introduction
The financial environment is the part of the economy having the players such as
markets, firms and investors. International financial environment plays the important role in
accessing the capital markets all across the world, enabling the country for borrowing during
the tough times and lending during the good times. The environment of the international
promotes domestic growth as well as investment with the help of capital imports. Further,
financial risk management is practiced by the organization, which are the practices of the
firm’s economic value by using the financial instruments for managing exposure to the risk
(Ocampo2018). Moreover, the analysis of the company’s financial performance identifies the
strength as well as weaknesses of the company with the help of establishing relationship
between the balance sheet items as well as profit and loss account. It facilitates short-term as
well as long-term forecasting and growth that can be defined with the help of financial
performance analysis. Hence, under this assignment, discussion will be done on the two
recent developments in the international financial environment. Further, discussion will be on
the structure of capital and dividend policy of the company. Lastly, company’s financial
performancein terms of financial ratio will be discussed. The company, for which the analysis
has to be done, is Accenture.
Background of Company
Accenture Plc is the multinational professional services company, which provides the
services in the consultations, strategy, technology, digital as well as operations. The offering
of the company includesanalytics, system integration consulting, security, collaborations
services, change and customer relationship management as well as workplace technology.The
incorporation of the company has been in Dublin, Ireland, right since from September 1,
2009. Accenture serves their customers worldwide (Accenture.com. 2019).

3FINANCE
Discussion
Recent Development in International Financial Environment
The advent of the globalization as well as rapid integrations of the financial markets
has resulted into getting smaller world in every aspects. The financial environment in today’s
era is dominated by the dynamic as well as aggressive financial service industry. The market
participants are generally exposed to the greater financial risks as compare to before because
of the appearances of the more dynamic and complex transactions, which have increased
substantially the uncertainties in the marketplace (Tienhaara2014). For providing the
essential financial transactions as well as contributions to the rapidly expanding global
finance, emergence of the new markets for example highly liquid derivative markets and
foreign exchanges. In comparison to the domestic financial environment, International
financial environment is entirely different. It is subject to the various external forces such as
international financial markets, international monitory system, currency convertibility,
balance of payments and foreign exchange markets. Hence, the most recent developments in
the International Financial environment that have influenced the recent performance as well
as development of Accenture is the outcome of the company’s operations that is
geographically diverse operations as well as their growth strategy for continuing the
geographic expansion. One of the aspects of the growth strategy is to continue for expanding
around the world in the key markets (Nakajima, Sawamoto and Taguchi 2016). First recent
development includes strict restrictions on the cash movements as well as foreign currencies
exchange.In some of the countries, the company might be subject to the strict restrictions on
cash movements as well as foreign exchange restrictions that would be limiting the ability for
using the cash across the global operations as well as exposure to the more extreme
fluctuations of currency. This particular risk would be increasing, if the company
continuestheir geographical expansion in the key markets all around the world that includes