FINANCIAL DECISION MAKING

FINANCIAL DECISION
MAKING

Executive Summary
This project report is based case study of SKANSA PLC that is working from 1984 in
UK and want to make expansion. In this, study factor that have impact directly its financial
function and operation activities and measure has show. Financial ratio for period of 2018 and
2019 were evaluated and their impact for future has been presented.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Accounting Department:.........................................................................................................1
2. Finance Department:...............................................................................................................3
TASK 2............................................................................................................................................5
Part a: Calculation of the 5 ratios using the correct formulas:....................................................5
Part b: Analysis of the ratios.......................................................................................................6
1 ROCE.......................................................................................................................................6
2 Net profit Margin( NPR)..........................................................................................................7
3 Current ratio- ...........................................................................................................................8
4 Debtors collection period-........................................................................................................8
5 Average Collection Period-......................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
SKANSA PLC is UK based organization that is in constriction field from 1984, company is
willing to expand business activities across Europe foe that they want to assess their financial
stability. Quoted firm also want to measure financial performance to make decision about
exaptation. In this company there are more than 33,500 employees working since May 2020 and
the annual turnover for 2019 is 1,72,846.
SWOT Analysis
Strength Weakness
 Good research and development
process.
 Strong supplier base and
reputation for green constriction.
 Low operation margin.
 Failure to cop-up with
developing market.
 Occasional cash flows
Opportunities Threats
 More to explore in this market
with European countries.
 Higher competition.
 Legislative change in UK
market
TASK 1
1. Accounting Department:
Financial Accounting- It is process in which all the transaction of business activities is
recorded, summarized, and reported in financial statements (Amadi and Ejiogu, 2021).
SKANSA PLC is also liable to represent all transaction moreover, to find financial position and
for fulfilment of lawful obligation. In financial accounting company need to prepare some
statements like Profit and loss statements, Balance sheet, Cash flow statements etc.
Financial accounting is important for all organization however in reference to SKANSA
PLC which is planning for expansion it is more useful for-
Requirement of law- Company has to represent all record to investor for that they have
to need accounts audited, so they need financial statement.
1