Financial Analysis Essay Example | Topics and Well Written Essays - 2000 words - 2

Financial Analysis - Essay Example The weak market efficiency version is supported for the Pace Plc group based on the information available from the share prices. The share prices have shown fluctuating trends. While compared with those of the trends in the market indices like FTSE 250 index and technology, hardware and equipment index the trends are similar and in some years outperformed the market movements and have not declined significantly, which supports the weak form of market efficiency for the company. Hence based on the analysis in this report, it can be recommended that investors can buy the stocks of the company in spite of the fact that the company has shown poor performance in the context of global economic crisis in 2007. The evidence shows support in favour of improved financial performance in 2008 and 2009 and is still going on increasing. Financial Statements of a company are intended to give valuable information about the financial health of the company to its owner investors and lenders (Tracy, 2004). In other words, they are supposed to give information about the financial position, performance and changes in financial position of the company. In this report, the financial performance of Pace Plc listed in the London Stock Exchange is analyzed. The objective of the study is to analyze the financial performance of the group and to recommend whether or not to invest in the company’s shares based on the analysis. The financial performance is analyzed using financial ratio analysis and share price analysis. This report is organized as follows. Section 2 discusses the company history and business. Section 3 discusses the methodology. Section 4 discusses the analysis and results. Section 5 concludes the report. Pace Plc is one of the most famous digital TV technology developers in the pay TV industry, with its headquarters in Saltaire, UK (Pace Plc, 2009a). It was founded in 1982. It has