BM414 Financial Decision Making: Skanska PLC Financial Analysis Report

This report provides a comprehensive analysis of financial decision-making within Skanska PLC, a British building company. It begins by examining the framework of accounting and the role of the finance department in the company, emphasizing the importance of financial management for making informed business decisions, especially in a competitive market. The report then delves into the interpretation and evaluation of financial statements, including a detailed ratio analysis for the years 2018 and 2019, calculating metrics such as Return on Capital Employed (ROCE), net profit margin, current ratio, and debtor and creditor periods. The analysis highlights the significance of these ratios in assessing Skanska PLC's financial health and performance, offering insights into areas like profitability, liquidity, and efficiency. The report also discusses the roles of key personnel within the finance department, such as finance and accounts managers. The overall aim is to provide a clear understanding of the financial decision-making process within a real-world business context, demonstrating the practical application of accounting and financial analysis techniques.