Posted: January 30th, 2023
Research and analyze an annual report for a company of your choice, within your industry, and then write a report that provides a financial rationale and justification for a recent major strategic decision that they made using information taken solely from their financial reporting statements. What specific information can you find in your analysis of the report that makes this a wise investment from a financial point of view?
SOLUTION
To analyze a company’s annual report, one would typically look at several key financial statements, including the income statement, balance sheet, and cash flow statement. These statements provide information on the company’s revenue, expenses, assets, liabilities, and cash flow. The annual report can also provide other important information, such as a description of the company’s operations and strategy, market conditions, and competition.
Using this information, one could analyze a company’s recent major strategic decision to determine whether it is a wise investment from a financial point of view. For example, if the company has recently made a major investment in research and development, one would look at the company’s income statement to see if there has been a corresponding increase in R&D expenses. If the company has also seen a significant increase in revenue, this would suggest that the investment in R&D is paying off.
Place an order in 3 easy steps. Takes less than 5 mins.