This report provides a comprehensive analysis of financial decision-making, encompassing the crucial roles of accounting and finance functions within an organization. It explores the significance of financial ratios, such as liquidity, profitability, and solvency ratios, in assessing a company's financial health. The report uses Skanska plc as a case study, examining its financial performance through ratio analysis and interpretation. Task 1 details the accounting and finance functions, emphasizing their importance in financial planning, control, and decision-making. The report covers the structure of financial statements, including the balance sheet, income statement, and cash flow statement. It also highlights the accounting techniques used by companies, such as marginal and absorption costing, and capital budgeting methods. Task 2 focuses on ratio analysis of Skanska plc, including the calculation and interpretation of key ratios like Return on Capital Employed (ROCE), Net Profit Margin, and Current Ratio, providing insights into the company's efficiency, profitability, and liquidity. The report provides interpretations of the ratios, and offers suggestions for improving financial performance.
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