Usually, stakeholders are interested for this kind of information for purposes of investment, credit, and businesses. Stakeholders are credit institutions, shareholders, suppliers, customers, employees, analysts, competitors, government institutions, and others.
This paper analyzes Pulte Group as a case study of company analysis. The study is divided in two phases. First, an understanding of the company’s business, strategies and industry is presented to show relation of activities to its spending. Second part is a ratio analysis to understand the relationship of ratios from previous years for internal trends and ratios of other firms for external trends for comparison.
The importance of a financial analysis nowadays cannot be discounted because of its contributions to decision-making.
As a guide to interested stakeholders, an Analysis of Pulte Group, Inc. is being done for the purpose of reviewing trends of financial performance of the company to find if there its strategies are consistent with their spending; and to know if the company measures up with competition. Comparing the company with competitors will give light as to the standing of the company. As this company is a publicly listed company, shareholders of the company are interested to know status of the company because of their personal interests of investments. Credit institutions and suppliers are likewise paying attention to its credibility due to risks involved in doing business with the company. Finally, the government, as the controller of institutions concerned with the implementations of SEC rules of submission of its annual Report, has to check compliance.