Financial Statement Analysis Structure

Financial
Statement
Analysis

Finance 1
Executive Summary
The main objective of this report is to discuss the concept of financial analysis. Financial
analysis is the procedure of measuring the financial situation. Ratio analysis, horizontal analysis,
and vertical analysis are the financial analysis tools those are used by the company to evaluate
the financial statement. As per the analysis, it is observed that Spotless has to improve its
financial situation as its competitor (Compass) has strong financial position. Spotless has less
capability to generate the profit as compare to the competitors due to which it faces the
challenges in financially terms. It is recommended that the company has to change its sources of
funds such as it has issue the share instead of borrowing money.

Finance 2
Contents
Introduction.................................................................................................................... 2
Ratio Analysis................................................................................................................ 2
Horizontal Analysis.......................................................................................................... 8
Vertical Analysis........................................................................................................... 10
Comparison Analysis...................................................................................................... 11
Recommendation........................................................................................................... 12
Conclusion................................................................................................................... 12
References................................................................................................................... 14

Finance 3
Introduction
Financial analysis is the procedure of assessing the financial situation of the firm by
determining the firm budgets and the other financing activities. It is necessary for the
organization to assess the financial situation with the motive to take financial decision in an
effective manner. There are numerous ways those are used to examine the financial statements
such as ratio analysis, trend analysis, horizontal analysis and the others (Robinson, Henry, Pirie,
& Broihahn, 2015). The method and methods are can be adopted on the historical data of the
firm those are recorded in financial statements with the motive to compare its performance from
last years. In this paper, the discussion is made on the topic of “financial analysis”. Spotless has
been taken into consideration to estimate the financial situation in the market. In this paper, the
financial position of the firm will be discussed by using different techniques, tools to calculate
the financial statements.
Spotless Group Holding is an Australian company that operates the business in various fields as
it offers the integrated facility services. It offers the Health, education and government,
Commercial and leisure, Catering food services, Laundry and linen, Base and township services
to consumers. It operates the business in Australia and New Zealand with the 36000 number of
employees. It was established in the year 1957. As per its history, acquisition is the strategy from
which they achieve the objective and success in business. Compass is also one of the competitors
of the company in terms of serving the food to consumers (Spotless, 2019a).
Ratio Analysis
Ratio's