Financial Decision Making: Accounting and Finance Departments

FINANCIAL DECISION
MAKING

EXECUTIVE SUMMARY
Financial decision in the form of making investment in the form of making investment in
the company is one of the major decision from the investors and company’s perspective. Taking
of this decision is depended on several factors including the company’s financial position and
performance that whether it is performing well or not. Likewise, an analysis of the financial
statement with the help of accounting ratio enable the investors the actual financial condition of
the company.
In addition of this performance of accounting and finance department also plays an
important role in terms of raising its financial performance. These departments enable the
company the actual financial condition so that the companies can self-evaluate and make
adequate corrective actions.
This report will discuss about the concepts of accounting and finance departments along
with their various functions. In addition of this an analysis of the ratio is also included in this
report followed by conclusion and recommendations that how on the basis of the analysis of the
financial ratios the financial decision regarding the investment will be taken.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
TASK-1............................................................................................................................................4
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Accounting department................................................................................................................4
Finance department......................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
TASK-2..........................................................................................................................................10
Calculation of ratios...................................................................................................................10
Analysis of results of ratios with respect to SKANSKA PLC...................................................11
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

TASK-1
INTRODUCTION
SKANSKA PLC is counted as one of the famous and top most construction company of the
entire world and the UK. It was founded in 1984. It operates its business operation and
construction project in many countries including the Nordic region, Poland, Romania, Hungary,
and various other countries. The approximately number of employees that are associated with the
company are 32500 in 2020 (Skanska in brief, 2021). Its share of revenue is around SEK
158.6bn. Andreas Danielsson is the CEO of the company. it mainly operates and perform its
business operation in the form of handling the construction projects across the globe.
SWOT analysis of SKANSKA PLC:
Strength:
Effective business strategies, good suppliers code, strong order book, high focus on
R&D, no compromise with regard to professional services, timely completion of projects are all
counted as strength of SKANSKA PLC.
Weakness:
High struggle towards improving the operating margin, non-establishment of company in
developing market and countries, are some of its weakness (Skanska SWOT & PESTLE Analysis,
2021).
Opportunities:
Raising trends towards the urbanization, demographics, high concentration of changing
trends towards the construction industry, high growth of industry in USA and UK are counted as
major opportunities that the company can grab.
Threat:
Brexit and its imposition of restriction in import and export, continuously rising the intensity
of market competition may act as a threat that may affect the company.
MAIN BODY
Accounting department
It is one of the major department of the company that is responsible for handling accounting
transactions of the company. Like other departments, accounting is also an important department
because under this department company’s financial transaction are recorded. Here all the