Scribd
Upload
562 views

Example

This accounting report analyzes the current and prospective profitability, liquidity, and financial stability of Outdoor Equipment Ltd. The analysis uses methods like trend analysis and calculates ratios that show the company's ratios are below industry averages, especially in areas like profit margins, liquidity, credit control, and inventory management. The report finds the company's prospects are not positive in its current position and recommends improving accounts receivable collection, inventory turnover, and reducing prepayments. The analysis has limitations like a lack of forecasting figures and company details.

Uploaded by

andrew_yardy2623
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
562 views

Example

This accounting report analyzes the current and prospective profitability, liquidity, and financial stability of Outdoor Equipment Ltd. The analysis uses methods like trend analysis and calculates ratios that show the company's ratios are below industry averages, especially in areas like profit margins, liquidity, credit control, and inventory management. The report finds the company's prospects are not positive in its current position and recommends improving accounts receivable collection, inventory turnover, and reducing prepayments. The analysis has limitations like a lack of forecasting figures and company details.

Uploaded by

andrew_yardy2623
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

File2 Here is an example of an executive summary from an accounting report: Example 1: This report provides an analysis and evaluation

of the current and prospective profitability, liquidity and financial stability of Outdoor Equipment Ltd. Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Debt, Current and Quick ratios. Other calculations include rates of return on Shareholders Equity and Total Assets and earnings per share to name a few. All calculations can be found in the appendices. Results of data analysed show that all ratios are below industry averages. In particular, comparative performance is poor in the areas of profit margins, liquidity, credit control, and inventory management. The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management. Recommendations discussed include: improving the average collection period for accounts receivable improving/increasing inventory turnover reducing prepayments and perhaps increasing inventory levels The analysis conducted has limitations, some of which include: forecasting figures are not provided; nature and type of company is not known, nor the current economic conditions; there are data limitations as not enough information is provided or enough detail i.e. monthly details not known; results are based on past performances, not present.
Excerpt from Woodward-Kron, R. (1997) Writing in Commerce: a guide to assist Commerce students with assignment writing, (Revised edition), Centre for the Advancement of Teaching and Learning, The University of Newcastle.

See the next page for an analysis of the Executive Summary above

Analysis of Example 1:

This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Outdoor Equipment Ltd. Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Debt, Current and Quick ratios. Other calculations include rates of return on Shareholders Equity and Total Assets, and earnings per share to name a few. All calculations can be found in the appendices. Results of data analysed show that all ratios are below industry averages. In particular, comparative performance is poor in the areas of profit margins, liquidity, credit control, and inventory management. The report finds the prospects of the company in its current position are not positive. The major areas of weakness require further investigation and remedial action by management. Recommendations discussed include: improving the average collection period for accounts receivable improving/increasing inventory turnover reducing prepayments and perhaps increasing inventory levels The analysis conducted has limitations, some of which include: forecasting figures are not provided; nature and type of company is not known, nor the current economic conditions; there are data limitations as not enough information is provided or enough detail i.e. monthly details not known; results are based on past performances, not present. (201 words)

Subject matter

Methods of analysis

Findings

Conclusions

Recommendations (note that conclusions and recommendations can be bulleted)

Limitations of the report.

Click on the close button (top right of this window) to return to the module

You might also like