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Compose a 1750 words assignment on gazproms financial performance: business efficiency and effectiveness. Needs to be plagiarism free!

Compose a 1750 words assignment on gazproms financial performance: business efficiency and effectiveness. Needs to be plagiarism free! Financial analysis is the process that determines the financial performance of the organization by comparing the entities in the balance sheet with those contained in the income statement. The relationship between the items in the income statement and those in the balance sheet originates from the fact that it is the items in the balance sheet that gives rise to items in the statement of operations such as sales and expenses (Kapil 2011, pp. 1-2). The analysis of the financial statement is important because it provides information needed by various users of the financial statement. Users need the information for decision-making. Some of the users and their information needs are as follows: shareholders would use the information to evaluate the ability of the company to pay the cash dividend. In addition, they use the information to assess the earnings per share. For that reason, they make investment decisions based on the profitability ratios, dividend ratios, earnings yield, and dividend payout ratio (Lasher 2008, pp. 64-65). The potential investors who provide capital to a company are concerned about both the short and long-term ability of the company to generate the required rate of return at a given level of risk. For that reason, they rely on dividend ratios, return ratios, gearing ratios for decision making on whether to buy or sell assets. They are also in need of the information that enables them to assess the ability of a corporation to pay the cash dividend. The employees need to know whether their employer is financially stable. They use the data to evaluate the employer’s ability to implement a fair remuneration package, provide retirement benefits and be able to offer employment chances. For that reason, employees rely on the profitability ratios for analysis (Lasher 2008, pp. 64-65). Lenders have both short and long-term interest in the firm.

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