Search any big company's financial statements and according to these statements try to make analysis...

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Search any big company's financial statements and according to these statements try to make analysis on the financial position of the company.I attached a fiancial analysis report for your referrence. Any report consists four parts: (1) calaulations of financial ratios; (2) description of the financial situation of the company;(3)Explain of the reasons for obvious changes;(4)suggustions and recommedations to improve the financial position.
	
Document Preview: Review of SSP’s financial performance and positionProfitabilityOverall SSP plc has increased turnover by nearly 15%, however, this appears to be at the expense of operating profit which has fallen by 20%. The company’s Return On Capital Employed (ROCE), which indicates how well the business has used the financial resources which have been invested in it, has fallen from 31.9% to 23.3%.  Although the ROCE for 2004 in absolute terms appears quite satisfactory (it is certainly higher than the cost of capital), this ratio shows a decline from the previous years and must be further investigated.The gross profit margin (which effectively compares the cost of goods sold with the selling price) has been maintained at 60%.  However, the net profit ratio (which measures operating profit as a proportion of sales) has fallen from 12.1% to 8.5%.  This indicates that the fall in profitability is due to a disproportionate rise in expenses in relation to turnover.  In particular, administrative expenses have increased by 26% which is more than the increase in sales.  This overall drop in the profit margin will be a major factor in the drop in the ROCE and further analysis must be undertaken to ascertain what specific expenses were responsible. LiquidityAll firms need liquid assets to meet day to day payments.  Cash is the life-blood of any business, no matter how large or small.  If a business has no cash and no way of getting any cash, it will have to close down.  The liquidity ratios highlight the ability of the firm to convert its assets to cash.  SSP’s current ratio (which compares current assets with current liabilities) has improved from 1.56 to XXXXXXXXXXHowever, the acid test ratio, which excludes stock values (which are seen as less ‘liquid’ than other current assets) has dropped from 0.76 to 0.64.It is not the absolute value of this ratio which might cause concern but the fact that it has fallen over the year.  An examination of the constituent parts of this...

Robert · Accepted Answer

FORD is one of the biggest automobile companies in USA.Recently this company a stiff 
competition from deomestic producer as well as international market.Besdies this drawback 
company is unable to pass on the increased price of raw material.Profit margin are slowly 
decraseing.Below we are depicting the financial health of FORD.The data this purpose is taken 
from yahoo.finance. 
PROFITIBOLITY
Ford’s gross revenue declined by 1.48 % compared to previous year .Surpassing the rate of 
revenue decline, gross profit decline by 5.43 % .It implies that cost of goods sold/Gross Revenue 
Is higher in 2012 compared to 2011. Cost of goods sold/Gross Revenue is 82.85 % compared to 
83.18 % in 2011.The above figure shows that company is unable to pass the higher cost of raw 
material/labour to their Consumer. Company achieved a Gross Profit Ratio 16.14 % compared to 
16.82% in 2011.The Operating Profit Ratio in 2012 is 4.69 % compared to 5.69 % in 2011 i.e., a 
decline of 18.93%.But the sharp rise in operating Expenses is not because of General Selling and 
administrative expenses but it is only because of Non-recurring expenses. 
Ford’s Return on Capital Employed fallen sharply from 51.63 % in 2011 to 39.44 % in 
2012.Return on Capital Employed shows the effective rate of return from the investment, it 
shows a ratio between effective return and effective long term investment(Capital Employed). 
Though in both year the ROCE is higher than cost of capital. 
From the above ratio it is seen that the Operating ratio & ROCE of company has decline sharply 
from immediately previous year. The Overall drop in Profit margin is a major factor in decline 
Return on Capital Employed. 
In light of above, FORD should action so that company can pass the increased cost of goods sold 
their customer. On the other hand it should sharply monitor its operating cost and ignorance 
should be checked by giving proper responsibility to individual person. 
LIQUIDITY 
Liquidity analysis is a foundation of balance sheet analysis. Every Organization Needs some 
level of liquid fund which is readily available to meet the organization short term need. It may 
happen that a company with a very good capital assets suffering from liquidity crunch. So in line 
with other aspect of company’s position, liquidity factor must be looked into. Liquidity ratio are 
set of ratio that measure company’s ability to pay company’s short term debt Obligation. This is 
done by measuring company’s liquid assets against short term debt obligation. 
Ford’s Current ratio which reflects how much liquid asset company kept against one dollar short 
term obligation is 1.828.Current ratio was 1.905 in 2011.So marginal decline a current ratio is 
reflected by financial statement of FORD.Acid test ratio (which excludes the inventory from the 
current asset) is 1.72 in 2012. 
A thorough analysis of this ratio shows that main reason of decline of current ratio is decline of 
cash & cash equivalent from 2011 to 2012.

Search any big company's financial statements and according to these statements try to make analysis on the financial position of the company.I attached a fiancial analysis report for your referrence....

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