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Analyses of ratios in relation to financial accounting

   

Added on  2020-07-22

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Financial and Managementaccounting
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EXECUTIVE SUMMARYFinancial accounting is the aspect in which all the transactions in respect of finance willbe accounted for. For this information is required that is collected with the help of managementaccounting. All the accounts and statements are prepared which can be used by managers inmaking of appropriate decisions. In the report, analysis of them is conducted with the help ofratios that will prove to be beneficial as manner in which operations are performed is identifiedby this. Different aspects such as profitability, liquidity, solvency and efficiency are taken intoconsideration under it. investors view is provided importance and for that interpretation is doneso that they can draw valid conclusions. Corporate and sustainability responsibility of Goodmanare discussed which provides benefit to customers and company both and they are alsomentioned here under. in order to identify the qualitative aspect comparison has been made withthe another entity in same sector that is Dexus.
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Task 1: Financial analysis......................................................................................................1Task 2: CSR reporting............................................................................................................3Task 3: Comparison of reporting............................................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7APPENDIX......................................................................................................................................9
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INTRODUCTIONFinance is the most important requirement of any business and it will be required that allthe aspects with respect to it shall be analysed in an appropriate manner (Yadav, Kumar andBhatia, 2014). For this, there are various techniques which can be used and also, a company cancompare itself with others so that final outcomes can be evaluated properly. The report will bemade by taking Goodman group which is dealing in real estate. By the help of this it will bedetermined that whether the quality has been maintained in statements prepared or not.Task 1: Financial analysisIn the conduction of financial analysis it will be required that various methods shall beused so that proper conduction can be done. The main tool which can be used here is ratios.position of company will be determined with the use of it. There are various ratios that can beused and are classified under four main heads which will be representing, liquidity, profitability,efficiency and solvency of business (Brigham and Ehrhardt, 2013). The calculation of them willbe made and then it is to be compared with benchmarks set so that evaluation can be done. Theclassification is as follows:Liquidity: They are those by which liquidity of business will be examined. In this, it ischecked that whether company will be able to meet its liabilities on time or not. here, themain ratios which are to be calculated are current and quick . Investors will be wanting toknow about this as they are willing to invest in company only when it is having strongliquidity. This is because; this proves that it is in good position and their money is not atrisk.Solvency ratios: In this, the financial stability of business is checked and for the same,debt of company will be compared to assets and equity which is held by it. If debt is highthen it will be considered that there is no flexibility and lot of expenditure is to be madein the form of interests. Debt to equity or asset are major ratios which can be carried outin this section. If debts of company are less then, it has an opportunity to use funds formaking investments which yield additional earnings and this is beneficial for investors asthey are also the part of company. Profitability: The main purpose for which any entity is established is profit. So, it isneeded that profitability shall be maintained and for the same, ratios are calculated to1
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