Financial Analysis Interserve
1. INTRODUCTION 2 2. Industry Background 2 3. Company Information 2 3.1 Geographic (Operating Profit contribution) 2 3.2 Major Stakeholder and Management and Governance 4 4. Objectives 5 5. Measurement and Performance 5 6. Financial Ratio Analysis 6 6.1 Liquidity Ratios and Short-Term Debt-Paying Ability 6 6.2 Long-term Debt Ratio 8 6.3 Profitability Ratios 9 6.4 Investor Analysis Ratios 10 7. Trend Analysis 11 7.1 Horizontal Analysis 11 7.1.1 Income Statement Horizontal Analysis 11 7.1.2 Balance Sheet Horizontal Analysis 14 7.2 Vertical Analysis 16 7.2.1 Vertical Income Statement Analysis 16 7.2.2 Vertical Balance sheet Analysis 18 8. Memo 21 9. Appendix 23 9.1 Interserve FinSaS input 23 9.2 Interserve Ratios 25 9.3 Kiers FinSaS Input 27 9.4 Kiers FinSaS Ratio 29 9.5 Kiers FinSaS Vertical Analysis 30 9.6 Kiers FinSaS Horizintal Analysis 33 10. Bibliography 35
1. INTRODUCTION
This is an analytical procedures’ report of Interserve plc. to evaluate the company’s performance using its last four financial statements. The report is used in planning to understand the client’s business and industry. It compares clients’ ratio to industry or competitors benchmarks to provide an indication of the companies performance. Also, it is used throughout the audit to identify possible misstatements, reduce detailed tests, and to assess going-concern issues (Michael, 2011).
2. Industry and Environment
The purpose of analyzing the business and industrial environment of Interserve’ Plc. is to assess the risk related to the industry (Support Service Industry). The support service industry is made up of many firms whose sole purpose is to deliver services to the consumer market. Using heavy machineries and hi-technologies.
Table 2.1: Common risks faced by industries
Specific Risks | 1. Treasury management risk | 2. Principal risk and uncertainties | 3. Key People | 4. Macroeconomic
1. INTRODUCTION
This is an analytical procedures’ report of Interserve plc. to evaluate the company’s performance using its last four financial statements. The report is used in planning to understand the client’s business and industry. It compares clients’ ratio to industry or competitors benchmarks to provide an indication of the companies performance. Also, it is used throughout the audit to identify possible misstatements, reduce detailed tests, and to assess going-concern issues (Michael, 2011).
2. Industry and Environment
The purpose of analyzing the business and industrial environment of Interserve’ Plc. is to assess the risk related to the industry (Support Service Industry). The support service industry is made up of many firms whose sole purpose is to deliver services to the consumer market. Using heavy machineries and hi-technologies.
Table 2.1: Common risks faced by industries
Specific Risks | 1. Treasury management risk | 2. Principal risk and uncertainties | 3. Key People | 4. Macroeconomic
Bibliography: Cox, M and Fardon, D 2008 . AS Accounting for AQA. Osbourne Books. p336-352. Financial Times. Interserve Plc Market Data. Last assessed on 29 May 2012. <http://markets.ft.com/Research/Markets/Tearsheets/Business-profile?s=IRV:LSE> Interserve Plc., 2008, Annual Report & Financial Statements 2008, pdf, Interserve Plc, London last assessed 29 April 2012, <http://www.interserve.com/investors/financial-reports-and-results> Interserve Plc., 2009, Annual Report & Financial Statements 2009, pdf, Interserve Plc, London last assessed 29 April 2012, <http://www.interserve.com/investors/financial-reports-and-results> Interserve Plc., 20010, Annual Report & Financial Statements 2010, pdf, Interserve Plc, London last assessed 29 April 2012, <http://www.interserve.com/investors/financial-reports-and-results> Interserve Plc., 2011, Annual Report & Financial Statements 2009, pdf, Interserve Plc, London last assessed 29 April 2012, <http://www.interserve.com/investors/financial-reports-and-results> Interseve Plc., 2012 ,Last assessed on 29 May 2012 <www.interserve.com/about-interserve> Michael, A (2011). Auditing & Assurance Services. Essesx: Pearson Education Limited. p252-366. Woelfel, J (1994). financial Statement Analysis. United States of America: McGraw Hill. p55-85.