Case Study : The Cato Corporation

Abstract : Analysis of financial statement of a company is an important because it is useful to obtain Information

Our class was assigned a company for financial scrutiny and to obtain financial statements (Balance Sheet, Income Statement, and Cash Flow Statement), from the company’s most recent Annual Report. We are to prepare a written analysis of the organization with the following requirements:

• Analyse the company’s financial accounts in their most recent annual report and provide an overview discussion based on this information, of their financial strengths, weakness and challenges that may have contributed to their current state and explain how they may have contributed to the

| |company to develop a range of mass-produced clothing that could be sold to department

My financial analysis will focus on different aspects of the firm. A detailed view of the tax and its components, an analysis of profitability and GE’s ability to educe profits for shareholders, strategies of involvement and motivation of employees, as well as a deep analysis of its cash flow statement.

The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions.

As a Chief Financial Officer, I have paid certain attention to analyze the balance sheet and the income statement to interpret the business and highlight major strengths and weaknesses while offering some explanation for observed changes.

For the analysis we have used the historical financial data of the company, the history of the company and its financing policy, and the financial data of its competitors.

the financial analysis of the company, we should also consider other factors such as the

Generally, the company has portrayed a good fiscal year and their good health. It indicates an improvement in the ability to generate profits and income. The company has shown efficiency and effectiveness in because all the three Profitability ratios that involve profit margin, return on assets and return on equity. The company has a qualified auditor who analyses the financial statement of accounts of the company. Although at one point, the auditor gave an unqualified opinion concerning its financial statements. This is evident when analyzing the property plant equipment

Executive Summary ................................................................................................................................ 2 The strategies, corporate structure & culture of the firm ......................................................................... 3 Analysis of the industry in which the firm operates ................................................................................. 4 Computers ........................................................................................................................................... 4 Consumer Electronics ......................................................................................................................... 5 Music

In accounting, there is much to be learned, about the financial aspects of a business. In the past five weeks, this writer has learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is significantly important to managers, owners, employees, and investors. Managers of a business can take and deduce financial data from the income statement which details monthly earnings as well as the company’s liabilities and equity position, and is also used to project future yearly budgets.

The main objectives of financial statements are to help managers of an organization to determine whether decisions about funding were most appropriate, and thus determine the future of investments. Understand the elements that can be used to compare financial ratios and different analysis techniques that can be applied within a company. Describe some of the measures that should be considered for decision-making and alternative solutions to the various problems affecting the company, and help planning the direction of investments made by the organization. Using the most common reasons to analyze liquidity and activity of a company. Analyze the relationship between debt and financial leverage presenting the financial statements. Assess profitability. Determine the position held by the company in the competitive market in which it operates. Provide employees with enough information they need to keep them informed about the situation under which the company works. Financial statements are very useful to compare the current status of different companies in the market. By

The financial analysis above indicates that the company is not in a sound financial position. Therefore, drastic measures have to be implemented in order to improve its financial position. Otherwise, the company might face huge financial difficulties in the future. Financial difficulties often lead to insolvency. In addition, the company’s business model is not congruent with the modern business environment. This is because the company lags behind in the adoption of modern equipment and introduction of delivery

The target market of A-CAT is going to be the rural market segment. The reason A-CAT