Literature Reveiw (Lafarge)
bobbygogs3r
wk3_outline.docxRESEARCH OUTLINE 1
Lafarge RESEARCH OUTLINE
Robert Goss-Vozella
Wk3 AS1
Fundamentals of Financial Management
Lafarge is a construction company that provides construction solutions worldwide. It is the leading contributor in constructions of cities worldwide. Lafarge offers solutions in infrastructure, building, oil and gas, affordable housing and distribution. The company offers solutions in almost any project one hopes to start. It is the world’s leading company in building materials with cement, aggregate and concrete businesses. Lafarge has very many projects in every aspect it contributes to. It contributes largely in employment in different countries by offering variety of jobs and internships to prospective candidates.
An outline mapping the elements that will help in my research on the Lafarge Company.
Shares and Dividends.
An analysis of the share prices in a period of at least five years will be done. This will aim at showing the trend in share prices over that period. This trend will provide information necessary in financial analysis. The information will help us report on the financial position of the company. Another element would be the dividends paid out to the shareholders. Dividends are an example of cost of money therefore; the payout ratio shows how profitable the company is. An analysis of the type of shareholders the company has would also help in the analysis. Other analyses would be trends on earnings per share, dividends per share and dividend payout ratio.
Financial statements.
Financial statements like Statements of financial position, income statements, etc. are very useful in financial analysis. Lafarge publishes its statements annually. They include press release, shareholders publication, consolidated accounts, etc. An extensive research and analysis of the same will highly contribute to my research on the company. A ratio analysis will be done to give conclusions on the liquidity, profitability, shareholders’ contribution and stability of the company.
Credit information
This is information on the debts of the company. This information is very useful in determining the financial position of a company. Credit information will help in making the best conclusion on how well the company can meet its debts with respect to its assets. The level of credit will also help in determining the creditworthiness of the company. This is information that will help on my research of the company’s performance.
Investments
An analysis of the company’s investments will help in the research. Investments are the largest sources of revenues to a company. The cost of money brought about by these investments is a prime contributor to the company’s financial position. Therefore, analyzing the investment records will greatly help in the research. A thorough analysis of the level of finance invested and returns from each investment are to be done.
Assets and Liabilities
An analysis on the assets and liabilities of the company will be done. Information on the number and types of assets and liabilities will be researched on. This research will help in the analysis of the company. The information will help in reporting on the liquidity of the company as well as its overall performance.
Corporate Governance
A fair research on the corporate governance of the company will help in the analysis of the company’s performance. The information acquired will help in the report writing process.
The above elements will help in the research and report writing of Lafarge Company. Each element will be researched on and a report from each research will be written.
References
Capon, N., Farley, J. U., & Hoenig, S. (1990). Determinants of financial performance: a meta- analysis. Management Science, 36(10), 1143-1159.
