Financial Decision-Making Report: Analysis of Skanska PLC Performance

This report provides a comprehensive analysis of financial decision-making within Skanska PLC, a UK-based construction company. It begins by evaluating the importance of accounting and finance functions, detailing their roles and responsibilities in maintaining financial records, avoiding legal issues, budgeting, analyzing performance, facilitating internal and external communication, and developing strategic plans. The report then delves into a financial analysis of Skanska PLC, calculating and interpreting key financial ratios such as Return on Capital Employed (ROCE), Net Profit Margin, Current Ratio, Debtor’s Collection Period, and Creditor’s Collection Period for the years 2018 and 2019. The analysis highlights trends in profitability, efficiency, and liquidity, offering insights into the company's financial health and performance, and providing recommendations for improvement.