International Financial Development | Report

Running head: INTERNATIONAL FINANCE
INTERNATIONAL FINANCE
Name of the student
Name of the university
Author’s note

INTERNATIONAL FINANCE1
Executive summary
The paper aims to highlight the recent international financial development and incidents which
has impacted the company’s performance. The paper studies how different external factors affect
the company’s dividend policy and the sources of finance of the company. The paper concludes
that financial ratios play a crucial role in studying the performance of the company. It concludes
that the financial ratios help to compare one business performance with its competitors as well as
in comparison to the whole industry.

INTERNATIONAL FINANCE2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Answer a......................................................................................................................................4
Answer b......................................................................................................................................5
Answer c......................................................................................................................................6
Liquidity Ratio.............................................................................................................................6
Efficiency Ratio...........................................................................................................................8
Profitability Ratio......................................................................................................................10
Investment Ratio........................................................................................................................13
Conclusion.....................................................................................................................................14

INTERNATIONAL FINANCE3 Introduction
Any international business which is conducting its business operations in several
countries is generally affected by the change in the environmental and economic changes
happening in all those countries. The change in the external environment usually affects the
internal environment of the company. The external factors can be in terms of the change in the
technology, rules and regulations, new product development, creation of new demand, change of
government, subsidies and tariffs or restriction and allowance of free trade can have a direct or
indirect effect on the business. The change in the environment directly affects the internal
environment in which the business is operating. Companies prepare financial statements to show
the financial position of the business. The financial statements are prepared with the objective of
providing financial information about the performance of the company. It is prepared basically
for the use of stakeholders so that they can make decisions concerning the company for their