FINANCE (RATIO ANALYSIS) Essay Example | Topics and Well Written Essays - 1750 words

FINANCE (RATIO ANALYSIS) - Essay ExampleThe threats of terrorism throw significantly boost refutal systems spending especially for countries like United States. After the September 11 tragedy which shocked the global business concern environment becomes a grim reminder for nations to improve their defense systems.BAE Systems Plc (BAE) traces its origin to the 7.7 billion merger of Marconi Electronic Systems which is the defense electronics and naval shipbuilding subsidiary of the General electric car Company Plc and British Aerospace which specializes in the manufacture of aircraft, ammunition, and naval systems. Out of these prestigious business organizations, its establishment in 1999 equipped with a unique competitive advantage which enables it to position itself as the third largest global defensive structure company and sixth largest US defense company employing 97, 500 highly skilled people. pecuniary symmetry analysis is a very essential tool in assessing the financial h ealth of a business entity. It enables a financial analyst to spot trends in a business and to compare it with the performance of standardized business enterprises within the same industry. This tool is currently utilized by business managers, investors, creditors, suppliers, and other conclusiveness makers in order to determine the financial performance and well being of a business organisation. Financial ratios are grouped into four broad categories, each showing a different aspect of a companys financial performance. These are profitability ratios, financial leverage ratios, liquidity/solvency ratios, and efficiency ratios.In order to get a deeper insight of BAEs financial performance, its computed financial ratios will be benchmarked with its rivals Cobham Plc. The rationale of choosing these two business organizations is simple. It should be noted that both of them are regarded as beta players in the global pharmaceutical industry. Being in the same line of business