Analysis of Financial Statements: A Case of SIEMENS Engineering LTD.

Abstract

In this project report the focus has been on the financial health of the Siemens Corporation. The very reason that it is the basis of any company to progress, expand or sustain. The main aim of the report is to predict the fair value of the share based on the financial data available. For the sole purpose of understanding the treatment of the entities present in the financial statements and how can they affect each other in terms of business and the outlook of the company for the public. The analysis is purely statistical and the interpretations are given along the basic analysis done include the ratio analysis and the following ratios have been calculated:  Liquidity Ratios  Activity Ratios  Debt Management Ratios  Profitability Ratios The analysis has reveals that the company shows an incremental trend year on year and the acquisition of the CTI has produced more incremental results. The results of financial and fair value analysis suggest that the shares are being traded at a slightly higher side because of being a multinational entity, which confirms the investors secure investment stance. Siemens as being listed and is one of the blue chip company mostly the shares are traded on the market perspective which is fairly higher than what the figures say, so it is a attempt to verify the stance of the investor and to know the widespread effect of the financials and the extent to which we can analyze it.