CORPOATE FINANCIAL Essay Example | Topics and Well Written Essays - 1500 words

CORPOATE FINANCIAL - Essay ExampleThus major companies conduct an investigating to discover the actual situation of the company.or Is the profit generated by the company solely based on the sale of its product, or does a part of the profit comes from other sources such as investment in a financial market, or any other source which testament not be viable for our companys board to manage? (Hutchison, S., 1968)Well... considering the situation of these two companies at end, basically we suffer to hypothecate ourselves to be acquirers and analyze the best price for purchase and the viability of purchase of FKI for Wolseley.So, to be able to do that we will analyze the data of FKI Plc and compare its various figures against our companys figures, so that we may establish a ratio based comparison between various factors such as Profits, Activity, Liquidity, Gearing ratio, etc. provided we will not forget other positive factors such as the growing business in rest of the world, the cre ditability created by the brand names owned by FKI, and finally the fact that a bigger and more renowned company such as Wolseley would definitely create a huge equal on the creditors and other parties (in a positive manner).Well... the current ratio indicates that both the companies have a precise similar assets and liabilities position, with 1.65 for Wolseley and 1.57 for FKI. Both these companies have their own plus points and loopholes. Overall, Wolseley is 6 times larger in scathe of Working capital. But in terms of Net Asset (Total Asset Total Liabilities) Wolseley has a more higher reserve by superlating FKI by 13 times, this has just doubled if we compare it to the current ratio.Primarily, we have evaluated the companys balance sheet. According to the balance sheet as provided by the companys Board of Directors, the situation doesnt look good in the current year, Fixed and current assets combine have fallen by about 98.7 million pounds, not only that