Assessment comprises the analysis and interpretation of PLC accounts including a 2,000 word report on the detailed analysis of the chosen business. A discussion of the capital structure of the company should be included. The company in question is Coca Cola 3E
The purpose of financial statement analysis is to examine past and current financial data so that a company's performance and financial position can be evaluated and future risks and potential can be estimated. Financial statement analysis can yield valuable information about trends and relationships, the quality of a company's earnings, and the strengths and weaknesses of its financial position.
Financial statement analysis begins with establishing the objective(s) of the analysis. For example, is the analysis undertaken to provide a basis for granting credit or making an investment? After the objective of the analysis is established, the data is accumulated from the financial statements and from other sources.
The results of the analysis are summarized and interpreted. Conclusions are reached and a report is made to the person(s) for whom the analysis was undertaken.
To evaluate financial statements, a student must:
-be acquainted with business practices,
-understand the purpose, nature, and limitations of accounting,
-be familiar with the terminology of business and accounting, and
-be acquainted with the tools of financial statement analysis.
It is essential for this report to use the appropriate financial ratios form the investment point of view. In addition HARVARD REFERENCING style is mandatory.