Financial Decision-Making Report: SKANSKA PLC Performance Evaluation

This report provides a comprehensive financial analysis of SKANSKA PLC, a UK-based construction company. It begins with an introduction to the importance of finance and accounting functions within a corporation, emphasizing their role in financial management and achieving business goals. The main body of the report is divided into two tasks. Task 1 explores the significance of various key financial functions, such as asset management, profit allocation, cash flow management, external financing decisions, and financial performance tracking, within the context of SKANSKA PLC. Task 2 delves into a detailed ratio analysis of SKANSKA PLC, including calculations for ROCE, net profit margin, current ratio, average receivable days, and average payable days for the years 2018 and 2019. The report then evaluates the company's performance based on these ratios, highlighting trends and providing insights into SKANSKA PLC's financial health and efficiency. The analysis includes an examination of receivables and payables, explaining how these metrics reflect the company's ability to manage its cash flow and meet its obligations. The report concludes with a summary of the key findings and a discussion of the implications for the company's financial strategy and decision-making processes.