1. Detail of individual role played with the group
As to provide professional analyzing for supporting the investment decision for the potential investor, I analyze the liquidity ratio and the efficiency ratio. I analyze the detail of the current ratio, liquidity ration, stock turnover, debtors turnover ratio, creditors turnover ratio and fixed asset turnover ratio. Through the analyzing of these ratios, I give the investor some ideas if the Blacks Leisure Group could comfortably cover its liabilities in the short term, and how well the Group has used its resources during the period. After reading the ratio analyzing, the potential investors could have some clear that would their investment be safe.
2. Problem experienced
As a non-accounting student, I have never learned the accounting before. Therefore I faced a mass of problems when I do the ratio analyzing. Moreover, I am an oversea student. I am not familiar with the UK’s economic environment.
The first problem I faced is which quoted UK company should I choose. In fact, I only have some ideas that TESCO, ASDA and HSBC are big companies. However, someone had already chosen them as their analyzing objects. Luckily, the tutor gave us some suggestions. Then we chose the Blacks Leisure Group which is a high-street outdoor leisure group, and supplier of all manner of outdoor pursuit clothing and equipment.
The second 英语论文网 【http://www.51lunwen.org】problem is how to understand the company accounts. In this step, I have to read a lot of textbooks to make some sense of the company’s financial accounting working. I have to know how to read the balance sheet, the profit & loss account and cash flow statement. Moreover, I have to understand the relationship between them. Overall, the second barrier is how to read the financial accounting statements. As a non-accounting student, there is a lot of accounting concepts make me confuse. For example, the meaning of assets and liability are difficult to understand for me. At last, I asked many accounting students and read some textbooks to understand them. I apprehend the assets as the using of capital, the liabilities as the source of capital. Then I can read the accounting statement easily.
The third problem is how to understand the ratios. I spend a lot of time on apprehending the effects of ratios analyzing. Then I understand how to use the accounting ratios to understand financial reports. The most important issue is how to understand relationship between the ratios and the company. The ratios are used to understand and to explain what has happened, and to predict what will happen.
The most difficult problem for me is how to explain the reasons of the ratios’ changes for the potential investors. In this step, I have to collect as much information as I can about the Blacks. I obtain the annual report and accounts, trade circulars and press releases from the
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