Decomposition Framework for Financial Analysis. Kforce Inc. and Morson Essay

Decomposition Framework for Financial Analysis. Kforce Inc. and Morson Group Plc - Essay Example Moreover, the investors needed to determine the underlying value of these investments in order to make sure that prices are rightly placed before making any decision related to purchase. These investors are generally called as rational investors who conduct analytical studies before making any decision related to investments. In this regard, the security valuation and financial statement have become very important. Financial analyses are those financial tactics and methods which help in comparing and evaluating the different investment opportunities such as projects and firms, to ensure and evaluate that the available opportunities are appropriate for making investments. Generally, the procedure of conducting financial analysis is based upon the past performance of a firm. The historical data is then used to evaluate the future performance of the company; therefore it is not at all necessary that evaluations are 100% accurate. Financial analysts usually obtain data from a variety of sources available, including income statements, balance sheets, and cash flow statements. Through these financial statements, analysts determine the ability of a firm to meet its liabilities and obligations, stability of a firm, level of profitability and liquidity and then compare them with their competitors in order to provide insights into the firm’s position as compared to the industry or its competitors. In balance sheet, the underlying financial position of of a company is present. The three main categories of which balance sheet is comprised include: assets, which demonstrate the long term and current investments of a firm through which revenues are expected to be generated; liabilities depict the long term and short term claims that stakeholders have; and equity which demonstrates the claim of the owners. This paper aims to analyze a U.K company, namely Morson Group PLC, in comparison with a U.S based firm known as Kforce Inc. The analytical methods utilized in this paper for analysis include: common-size analysis, trend analysis and profitability analysis. Understanding the Industry Companies which want to improve their performance need to provide training to their staff in recruitment centers. Leaders also get training so as to motivate their workers and working with efficient employees. A real competition among organizations has taken place nowadays. Every other company is st riving hard to develop the skills of its employees. In this regard, a lot of training and development programs are being established every other day. Subsequently, a new type of competition between employees and management has also taken place. For this reason, companies are looking for recruitment companies so as to develop the special needs of their staff. Recruitment companies play a vital role in improving the facilities and skills of employees. Moreover, they are also looking to maximize their profits. Therefore, they provide best possible offers, contracts, training and development programs through professional lecturers and trainers so as to improve their own credibility. In addition to that, they also offer some special contracts including free contract for more employees, discounts for contracts having longer tenure etc. KforceInc – U.S based firm KforceInc provides professional and technical services specially for staffing companies. This company is primarily based upon four departments which include: Government Solution (GS), Technology (Tech), Health and Life Sciences and Finance and Accounting (FA). The two activities of Tech and FA are delivered in the specific regions of North, Atlantic and Western markets. Morson Group