INTRODUCTION:
Financial statements are reports prepared by a company’s management to present the
financial performance and position at a point in time. Financial statement provides an
overview of a business or person’s financial condition in both short and long term.
Financial management is the specific area of financial dealing with the financial decision
corporations make, and the tools and analysis used to make the decisions. It is a process of
examining a company’s performance in the context of its industry and economic environment
in order to arrive at a decision or recommendation.
Financial statement analysis is a process of examining a company’s financial statements to
evaluate its financial performance and health. It helps identifying potential areas of
improvement and risks.
It plays a crucial role in assessing the past performance current position, prospects of a
company. It provides insights into the company’s ability to generate profits, manage its
resources, and meet its financial obligations.
It could discuss the importance of making informed decisions based on a thorough
understanding of the company financial position and performance. It sets the stage for the
reader to understand the context of the financial information presented in the statement.
STATEMENT OF PROBLEM:
It aims to conduct a comprehensive analysis of IBM’s financial performance over the past 5
years by examining the company’s balance sheet. Financial analysis helps you gain a deeper
understanding of your business, find out whether it's growing profitably and compare it to the
competition.
NEED OF STUDY:
Financial analysis is the process of evaluating a company’s information to make decisions
making and it's analysing the financial statement of a company. It can easily understand the
strengths and weakness of profit and loss of the financial matter.
Financial analysis is used to evaluate economic trends, set financial policy, build long-term
plans for business activity, and identify projects or companies for investment. This is done
through the synthesis of financial numbers and date.
The study has greater significance and provides benefits to various parties whom directly or
indirectly interact with the company.
IBM’s financial analysis is essential for gaining comprehensive insights into the company’s
financial health, performance, and strategic direction. It also helps in understanding of
products because my study is based on comparative and common size analysis.
OBJECTIVE OF THE STUDY:
The main objective of the study is to make an easy way to express financial statements of
IBM company, which makes it easier to analyse those statements. It evaluates the financial
position and performance of IBM company of past five years so as to reveal its financial
strength, weakness and causes which have contributed to the company.
To study the present and previous financial system of IBM.
To offer appropriate suggestions for the better performance of the organisation.
To examine IBM's financial statements for the past five years and review them in
order to determine the company's financial power.
To determine the financial condition and performance of the IBM company.
It is to evaluate IBM's capital structure and financing decisions to ensure with its
strategic objects.
Financial analysis is to know the efficiency of IBM and to identify their growth of the
firm & to know how financial performance plays a vital role in the growth of the
company.
SCOPE OF THE STUDY:
The current research focuses on the ibm company’s common size statement and comparative
statement. Common size financial statement helps to analyse and compare a company’s
performance over several periods. The common size percentages can be subsequently
compared to those of competitors to determine how the IBM company is performing relative
to the industry. Comparative statement of the IBM company is a method that measures the
examination of the IBM company performance. For this analysis previous five years balance
sheet has been taken.
Overall IBM aims to provide insights and solutions that enable organisations to make
informed financial decisions, manage risks effectively, and drive sustainable growth in a
rapid evolving business landscape.
It analyses the trends and patterns in financial data over time. It also helps in assessing the
financial health and stability of companies. It identifies the strength and weakness within a
company’s financial structure. It also helps and informs the investors making investments or
strategic decisions based on the analysis. It may also involve comparing IBM's financial
performance to industry benchmarks and analyzing trends over time to identify opportunities.