Financial decision making

130 views 11:05 am 0 Comments September 7, 2023

SKANSA PLC is a Construction Company based in UK. SKANSKA PLC started back in 1984. The company is planning to expand its operations to other countries in Europe in the next ten (10) years.

The summarised financial statements of SKANSKA PLC, a Public company engaged in Construction, are shown below.

Statement of profit and loss:

 

TASK 1

You are part of the Accounting and Finance team at SKANSKA PLC.

Write a report to the Management of SKANSKA PLC, critically evaluating the importance of Accounting and Finance functions, duties and roles within SKANSKA PLC.  Your evaluation must include some examples within the Company where appropriate.

TASK 2

1. Using the financial statements ofSKANSKA PLC, calculate the following five ratios for each of the two years:

Return on capital employed
Net profit margin
Current ratio
Average Receivable days/ Debtors collection period
Average Payable days/ Creditors collection period

2. Comment on the company’s performance from an Investor with £1 million

The interpretation and analysis of the Ratios in relation to SKANSKA PLC’s performance is required here. Results from and position between the two (2) years should be revised, explained and analysed, mentioning possible causes, reasons and effects for the changes in the ratios.

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