Statement Analysis Project

financial Statement digest Project

FI504
Accounting and Finance: managerial Use



Date: 06/12/2011

Table of Contents
Executive Summary…………………………………………………………..3
apprize Background of HP……………………………………………………...4
Environmental Scanning SWOT abridgment………………………………...5

Major Competitor IBM……………………………………………………..7
Financial dimension……………………………………………………………….9
Liquidity Ratio……………………………………………………......9
Activity Ratio…………………………………………………….……9
Solvency Ratio…………………………………………….…...……..10
Profitability………………………………………………………...…11
Overall Analysis and Recommendation……………………………...……..12

Recomendation..……………………………………………..……………….13

References……………………………………………………………….……14



I. Executive Summary:

This report stands from the point of go through of Hewlett-Packard (HP), and discusses about its line of work condition. In order to put up a clear picture of HPs business level, a comparison in finance is made betwixt HP and one of its biggest competitors, International Business Machines (IBM).



The main criteria of this newspaper are financial analysis which is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. The evaluation is done by focusing on the income statement, balance sheet, and cash flow statement. Financial ratio analysis purposes are to evaluate HPs past performance, the ideal benchmarks, its performance comparing to IBM and if HP meets its budget. throughout these analyses, HPs business state is visible and thusly recommendations are given so as to make mendments to improve the negative sides of HPs.
Briefly, HPs liquidity is tracking behind IBM; and so is its profitability and inventory turnover. On the separate hand its asset turnover and accounts receivable turnover is higher(prenominal)(prenominal) than IBM; similarly, solvency ratios indicate that HPs ability to cover debt with assets is higher than its competitor IBM.
Overall analysis indicates that, first of all, even though HP has high revenues, but since...If you want to get a full essay, order it on our website: Orderessay



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