Importance of a Financial Report

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Financial Analysis The enclosed financial report is meant to be an exhaustive and objective summary of the financial results of Oxford Instruments PLC, as presented by Moorcroft and Gladstone, LLP. This report is sectioned into three major parts. The first part will fixate on four key performance indicators and the associated trends of those indicators over the last five years. These indicators will be compared to the explanations and justifications offered by Oxford. Two of those indicators will be ratio-based. The second section will focus on two accounting policies, with justification, pertaining to the preparation of the company's corporate reports and whether/how the company's explanation of the accounting practices can be justified and are on the level. The third and final section will cover the importance of ethical accounting standards and how they lead to quality and accurate financial reporting. Performance Indicators One ratio that has improved greatly over the last five years and is worthy of review is the debt to equity ratio of Oxford. In 2008, that ratio stood at 178.72 percent and then rose to 225.2 percent in 2009 and then 278.16 percent in 2010. The ratio then fell by more nearly sixty percent to 122.99 percent in 2011 and then rose very slightly to 124 percent in 2012. That is a massive and unquestionable improvement (Oxford, 2012). The debt ratio also improved greatly, although the percentage gains were not nearly as massive. After starting at 64.12
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