Rolls-Royce:financial analysis

Rolls-Royce:financial analysis Essay example
Masters
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Finance & Accounting
Pages 11 (2761 words)
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The underlying factors that signal the possibility of success in a company’s stock are difficult to untangle, and necessitate business insight coupled with financial analysis of the investment option with regard to all key factors that make for a comprehensive scorecard…

Introduction

The underlying factors that signal the possibility of success in a company’s stock are difficult to untangle, and necessitate business insight coupled with financial analysis of the investment option with regard to all key factors that make for a comprehensive scorecard. The work of investment advisors in consultancy firms primarily entails analysis of investment options to offer factual and professional opinion on the viability of the investment. The purpose of this report is to analyse Rolls-Royce Company as an investment opportunity based on the 2010 annual report, five-year summary of financial ratios and strengths and weaknesses for the international reputable engine making company. Financial analysis: Rolls-Royce GROUP PuBLIC LIMITED Company 1. Background to Rolls-Royce Company 1.1 History Rolls and Royce came together to create the brand Rolls-Royce. Fredrick Royce was an electrical equipment manufacturer, and Charles Rolls was a baron who was intrigued by Royce’s engineering and together they formed the brand (Rowland & Henley, 1968). Royce would build the car and Rolls would sell them. Initially the cars promotion at the time was through racing, where the car’s reputation for durability and performance was founded. The war period made the company a formidable force in the aero-engine manufacture. In 2004, the company celebrated its 100th anniversary. ...
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