Module Code: BM414
Module Title: Financial decision making
CW1- 2500-word report to include business calculations/ratios
Assignment task
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 employedNet profit marginCurrent ratioAverage Receivable days/ Debtors collection periodAverage 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.
