Financial Decision Making: Accounting and Finance Functions

FINNACIAL DECISION
MAKING

EXECUTIVE SUMMARY
Financial decision with respect to company and the investor are one of the major decision
that is concerned with the goals of the company and the investors too. This means that the
investor will make its investment in any company on the basis of the financial performance.
Likewise, with the help of financial statements and financial position, companies can make
analysis of the efficiency of their business operations. This report will discuss about the concept
of accounting and financing department along with their various functions. An analysis of
financial ratio and considering them base and taking of investment decision is also included in
this report.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK-1 ACCOUNTING AND FINANCE FUNCTION...............................................................4
Accounting department................................................................................................................4
Finance department......................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
TASK-2 CALCULATION OF RATIO.........................................................................................10
Ratio calculation........................................................................................................................10
CONCLUSION & RECOMMENDATION..................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
SKANSA PLC is one of the largest construction company of the world. It was started in
1984. It is associated with the construction project and construction work in UK and other
countries. It operates its business operation in UK along with Sweden, Finland, Norway, Poland,
Denmark, Romania and many other countries. The number of employees are 30,944. The annual
revenue is around $7.2B in quarter 4 of 2020 (SKANSKA, 2021). It is counted at a rank of 1st
among the top 10 biggest competitor which shows its high and strong market presence.
SWOT analysis:
Strength:
Strong relation with supplier, R&D focus, great reputation across the world are all
counted as strength of SKANSA PLC.
Weakness:
Non capturing and establishment among developing market, low operating margin.
Opportunities:
High growth in construction sector among UK and USA, favourable business
environment, raising urbanization.
Threat:
Intense competition, high uncertainty among the market due to outbreak of covid pandemic
and Brexit between UK and EU.
TASK-1 ACCOUNTING AND FINANCE FUNCTION
Accounting department
It is one of the major department of any company including SKANSA PLC. As per the
function of this department, transactions are maintained and recorded. Along with recording of
transaction it is being classified and present in the form of financial statement so that the
company can evaluate its financial performance that how financially strong they are. It also
enables the companies to evaluate that whether they are performing in a desired direction or not.
Likewise, with the help of financial statement Investors can also analyse that whether They have
to take or make investment in the company or not. This means financial statement will also
enable the investor to take investment decision (Mella and Gazzola, 2019). Thus, it would not be