Financial Reporting and Analysis of AstraZeneca: Objectives, Significance of Financial Statements, Profitability and Investment Ratios

Financial Analysis and
Reporting

Contents
TASK...............................................................................................................................................3
(i) Key features and Key objectives of AstraZeneca-............................................................3
(ii) Significance of statement of cash flow, statement of financial position and income
statement as part of the financial information:.......................................................................4
(iii) Calculation of the profitability and investment ratios of Astra Zeneca:.........................6
(iv) Anticipation of the future performance of business on the basis of its past and current
position...................................................................................................................................8
(v) Pros and cons of historical cost accounting......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Financial reporting and analysis means to calculates its financial health by collecting related
data and information by preparing budgetary accounts, fund flow statements, balance sheet etc.
for knowing where a business stands in the market. It also helps to know about creditability,
soundness of business, carrying out of operations, to know about future plans of the organisation
and how the plans can be carried out. It is helpful for the comparison of present with past
performances, to keep useful data for future as well, have proof regarding any dispute if arises, it
keeps the data relevant as well (Vicari, A., 2021). This report discusses about AstraZeneca
company which deals in pharmaceutical & biotechnology and is counted among one of the
companies which came forward to become a helping hand at the time of pandemic. Further it
states about the objectives and background of the company. Along with the discussion
importance of financial statements in context with the users of accounting information.
Moreover, the financial performance of the organisation has been evaluated by the help of
productivity and investment ratios. Also the estimated future performance of the business has
been analysed in relation to the current and past fiscal information of the firm. At the end pros
and cons of historical cost accounting is discussed.
TASK
(i) Key features and Key objectives of AstraZeneca-
AstraZeneca is a British-Swedish pharmaceutical product company. It is established in the
year 1999 by merging two another companies named Swedish Astra AB and British Zeneca
group (Dong, Liao, and Zhang 2018) It mainly deals in products for diseases such as
cardiovascular, oncology, neuroscience, gastrointestinal and inflammation. It's headquarter are
situated at Cambridge Biomedical campus in Cambridge, England. It believes in delivering best
quality medicines to their buyers so that they can cure billions of people. Creating impact on the
minds of people by not only delivering their product but also work for fulfilling ethical and
moral standards of the society. It provides a friendly working environment by providing them
with mental health care as well as flexible hours of working to reduce fatigue and stress among
its personnel. It focuses on unity in diversity by employing persons from different cultures
because integrating minds and views of various areas helps to create an innovative product. It

main objectives is to work on the area of oncology, due to rise in covid spotting cancer became
difficult and hidden. They are working on therapies which are cell based to cure cancer. It joins
hands with the Haya a leading solution for oncology, working on the education and motivation of
patients to win this devastating disease (Ji and Zhang, 2019) They are investing huge amount in
achieving net zero carbon emission across the globe which is possible by using chemicals that
did not harm the environment. It welcomes all the ideas and have a unique research and
development which works to transform impossible thoughts into reality. They are using high
powered technology through which they are able to attain their societal and dynamic targets. In
the time of pandemic, it contributes in vaccine development as well as safeguarding the society
by delivering superior services to make this planet healthy and safe.
(ii) Significance of statement of cash flow, statement of financial position and income statement
as part of the financial information:
Financial statements are the collection of financial information about its profitability, liquidity
and its turnover in a particular financial year. These statements also get verified by government
auditors and stakeholders of an enterprise to know the accuracy of the same.
Financial statements are the key tools to know about its position to its external users. Importance
of financial information with respect to its users can be analysed as given below-
1.Cash flow statement-This statement is used to analyse the liquidity position of an enterprise
which helps to run the daily operations of an organisation in a smooth way. It tells about the cash
and cash equivalents such as bank overdraft available in an institution (Oussii and Taktak, 2018)
CFS supplements profit statement and statement of financial position. It includes cash flow
from operating, investing and financing activities. Operating activities includes adjustment of
current assets and liabilities and income related to daily activities of a business. Investing
comprises purchase and sale of fixed or non-current assets. Activities included in financing are
redemption and issue of share capital, debentures and other long term loans. It can be calculated
by using two ways: direct method and indirect method. Persons who wants to invest, inspect or
know about the financial status of an enterprise can easily get to know about the same by going
through it. External users of AstraZeneca, get acknowledged about the liquidity and cash inflows
and outflows of the respective company with the help of CFS.