Financial Evaluation of Skanska PLC

FINANCIAL EVALUATION
OF SKANSKA PLC

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Importance, roles, functions and duties of financial management...............................................3
Task 2...............................................................................................................................................7
Performance of organsiation........................................................................................................7
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11

INTRODUCTION
Financial management is a practice involve managing the financial resources associated
with the business entity. This report is based on the case study of Skansa Plc in context to its
management of finance related practice. The organisation is based in United Kingdom which
initiated its business operations in the year 1984. The organisation is further planning to expand
its operations in other business locations as well such as Europe within the time spam of 10
financial years. The aim of the project is to evaluate the financial performance of the business
unit and on the basis of that to understand the relevance of expansion of business unit.
Henceforth, report will give emphasis over the importance of accounting and finance functions in
the organisation. Duties and roles of financial management will also understand in this project,.
Furthermore, the performance of the Skansa Plc would be analysed with the use of ratio analysis
technique.
Task 1
Importance, roles, functions and duties of financial management
Financial management is about to manbage the fuinancial situation of the business
enterprises.
Financial planning:
This practice is important as it allow the Skansa Plc to manage the financial position of
the business entity. The significance of this technique adopted by the organisation is such that
managing financial resources is very important in respect to the business venture. The limitation
of the financial resource also motivate the business venture to incorporate the financial
management like practices adopted by the organisation (Cui, Jo and Na, 2018). Financial
planning involve allocation of funds and proper use of the financial resources adopted by the
business unit. This is an obvious fact that the Skansa Plc is a growing firm that require the
business unit to make a strong use of the financial resources available with the organisation.
Financial planning is about to coordinate the best use of the financial resources available with the
organisation.
Proper use and allocation of funds
The aim of the financial management practice at the Skansa Plc is to properly use the
financial resources. Based on the different requirements related to the business venture this is
about to allocate funds in against to follow the business practices. The aim of the financial

management practice is to ensure the best use of resources and financial feasibility available with
the organisation (Drempetic, Klein and Zwergel, 2020). Allocation of funds involve on the basis
of the specific need of each functional activity associated with Skansa Plc it involves
segregation of funds over different operations. This also support the overall objectives of
organisation to mitigate the business objectives.
Taking sound financial decisions
Financial management further comprises with taking up the financial decisions. This
involve taking up the sound financial decisions. The role of the financial management practice is
also to make strong decisions that can ensure the mitigation of the financial objectives in the best
way possible. The resources available with the Skansa Plc are limited which require the
management and expert to take on the sound decision-making when it comes to utilising the
financial resources at the work place (Rondinelli, 2017). Taking up sound decision would
include assessing the financial need of each individual functional activity and on the basis of the
need identified this involves making strong decisions. Allocation related decisions are involved
in this practice. The aim of the management is to make the optimum use of the financial
resources that further support the business unit to mitigate the business objectives in the best way
possible.
Acquisition of funds
Financial duty wisely involve acquisition of funds related aspect. This involve identifying
the sources to collect financial resources associated with the organisation. Identification of
sources of funds is equally essential for the business venture as financial resources are required
for delivering every single functional activity. Acquiring fund is very important as it further
support the business unit to process further the financial resources in regular business functions.
Funds acquisition is very important part of the business practices adopted by the venture. Every
single functional direction associated with the organisation seek finance and funds to meet up
various functional responsibilities of the company (Milliman and Clair, 2017). The overall
financial resources available in the respective market are limited in number that allow the Skansa
Plc to effectively allocate all its resources in all different business operations entertain by the
organisation. Also acquisition of funds are very powerful function that needed to operate by
business venture in an y given situation. IT is important to assess the cost of acquiring the
finances in the market. When it comes to evaluating about the funding options available cost of