International Finance: Facebook's Performance and Financial Strategy

International Finance

Table of Contents
Introduction......................................................................................................................................3
a. Critically discuss recent developments in the international financial environment which appear
to have impacted on Facebook recent performance........................................................................4
b. Key elements of Facebook’s international financial and risk management strategy...................5
C. Analyze financial performance.................................................................................................10
1. Gross Margin.........................................................................................................................10
2. Net Profit Margin...................................................................................................................10
3. ROCE.....................................................................................................................................10
4. Trade receivables period........................................................................................................11
5. Current Ratio.........................................................................................................................11
6. Gearing..................................................................................................................................11
7. EPS........................................................................................................................................12
8. Payout Ratio...........................................................................................................................12
References......................................................................................................................................13

Introduction
This report is based on financial analyses of International Company. The chosen company for
this particular report is Facebook which lies under the category of social media. Facebook
provides tertiary services and doesn’t charge any subscription fee from its users. FB gives its
services at free of cost; it receives revenue from advertisement posted by companies on users
timeline or news.

a. Critically discuss recent developments in the international financial
environment which appear to have impacted on Facebook recent
performance.
1. Perhaps the key principle among the latest changes in the world's budget industry sectors is
rapid connection and globalization. This development was fueled by the advancement of
industry segments, rapid mechanical advancements and major advances in media
communications, launched a new venture and funded open doors for organizations and
individuals around the world. Simplified licensing of global money-related business sectors
for individuals and organizations will encourage a more qualified capital allocation, which
in turn will drive financial development and prosperity.
2. In addition to this progressive realignment and globalization, economic sectors linked to
world currencies also come from extensive securitizations with belated experience. To some
extent, this progress was mitigated by the floods of consolidation and construction and the
use of procurement products that occurred in late industrial sectors, particularly in the euro
area. Part of this securitization cycle is the expansion of the spread of corporate security,
which has similarly been flexibly balanced in government bonds in a number of countries,
most notably the UK.
Both globalization and securitization helps Facebook to grab growth opportunities in the
international market. Integration and Globalization supports in gathering information about
performance of Facebook across various countries and make consolidated income statement.
While, securitization brings more fund for the company by utilizing illiquid assets by
transforming it into a security (All You Need To Know About Facebook Inc’s (FB) Financial
Health, 2020).
In near future also this both developments will help Facebook in getting better opportunities
from the market. But Globalization will bring cut throat competition for the company as now a
day’s start-ups companies are targeting to grab global market to get fast growth and boost its
sales.