Financial Analysis of Skanska Plc

FINANCIAL ANALYSIS

EXECUTIVE SUMMARY
Financial analysis could be defined as process of evaluating the business, budgets, projects
and other financial transactions for determining the suitability and performance of organisation.
Financial analysis is also used for assessing the stability, solvency, liquidity or profitability of teh
organisation. Report has revealed about the accounting and the finance departments. They both
play a significant role in the success of organisation, it is difficult to run the operations without
adequate management. The ratio analysis has been performed to assess the financial performance
of Skanska plc. It has been evaluated from the analysis that company is having adequate
financial management but have weak profitability and liquidity which has to be improved using
effective strategies and policies.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS................................................................................................................3
TASK 1............................................................................................................................................1
Introduction of Skanska PLc.......................................................................................................1
Define Accounting and Finance Department..............................................................................1
Importance of Accounting and Finance Department...................................................................1
Role of Accounts department......................................................................................................2
Role of finance Department.........................................................................................................3
TASK 2............................................................................................................................................4
a) Calculation of Ratios...............................................................................................................4
b) Financial analysis of Skanska Plc using the ratio analysis between two years.......................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

TASK 1
Introduction of Skanska PLc
Skanska Plc is the multinational construction and development company situated in
Sweden. It is fifth largest construction company of the world. The company is established since
133 years and is having headquarters in Stockholm Sweden. The construction projects of
company include renovations of UN headquarters, world trade centre, Moynihan Station and
many others
Define Accounting and Finance Department
Accounting and financial department of all the organization is regarded as a centre of all
the organization. Accounting and financial department generally ensures that financial
management and financial control are effectively controlled in the organization (Olbe, 2016).
Financial and accounting department generally controls the flow of money in and out of
business. Also, they make sure about the Payroll of all the employee and also perform the
activity of preparing financial report in the organization i.e. Profit and Loss Statement, Balance
sheet and budget. In simple words it can be said that it is the department which looks at
preparing financial statement, maintaining ledger, paying bills, manage payroll and flow of
money in & out of the business. Both the department used to operate same type of function but
the different is that Accounting department used to focus on the past, at the same time Finance
department used to focus on the future functioning of organization.
Importance of Accounting and Finance Department
Accounting and Finance department of Shanska PLc helps the company in managing the
finance in the organization. They generally make it sure that company is having a good amount
of the finance to overcome the variety of the issue which may be faced by the company. Not only
that financial department of the company also help the company in improving the level of
investment decision in the organization. Accounting department also help the company in
presenting and making of a financial report for the company. Not only that this department of
company also help the company in managing the tax liability of the company by coordinating
with the legal department of the company (Mumford, 2017).
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