Financial Decision Making, Ratio Analysis, and SKANSKA PLC

This report delves into financial decision-making, exploring the crucial role of accounting and finance functions in guiding businesses toward their objectives, with a focus on SKANSKA PLC, a prominent construction company. It examines management accounting techniques like financial planning, financial statement analysis, historical cost accounting, standard costing, and fund flow statements, emphasizing their importance in managerial decision-making. The report evaluates these techniques, highlighting their contributions to cost control, financial planning, and performance analysis. Furthermore, the report includes a detailed ratio analysis of SKANSKA PLC's financial performance, calculating and interpreting ratios such as Return on Capital Employed (ROCE), net profit margin, current ratio, debtor collection period, and creditor collection period. The analysis provides insights into the company's efficiency, profitability, and financial health, concluding with an evaluation of the role of accounting ratios in assessing a company's financial performance and assisting stakeholders in making informed decisions.