Using Financial Data to Measure and Assess Performance

Analysing Balance Sheets

Analysing Income Statements

A plc would publish these financial statements in its Annual Report which would be sent to all shareholders. Click on the picture.

 

 

 

In the BUSS3 exam you may be given a simplified set of accounts. Click on the picture to return to Superstyle plc.

 



 

In the exam they may ask you compare two sets of figures, make comparisons over time or identify trends.

You will be expected to identify strengths and weaknesses from the published accounts.

They may want you to use the figures to justify a business decision.

You will be using ratio analysis to help with this.

You also need to be aware of Working Capital.
This is the day-to-day finance for running a business.
Formula:
Current assets minus current liabilities.

You need to know the consequences of having too little or too much working capital.



Depreciation.
The value of some fixed assets will decline over time.

Profit utilisation.
What the directors decide to do with any profits made.

Profit quality.
This is the likelihood of a profit source continuing into the future.