Financial statements and the process of decision making in shipping companies
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Keywords
Financial statements ; Shipping companies ; Profitability ; Leverage ; Liquidity ; Balance sheet ; Risk management ; Strategic planning ; Cash flow ; ViabilityAbstract
This thesis discusses the analysis of the financial statements and the relevance of the financial statements; the use of shipping companies is depicted. Shipping is one of the key segment of the world economy and plays a significant role for the transportation of goods and resources. So the use and especially the interpretation of financial data assume such a crucial role to guarantee the solidity and profitability of shipping companies to such a highly capital demanding sector. The financial statements are very genuine in portraying the representation which may be deemed essential for every strategic management decision as regards the company’s financial position. In this regard, the present paper examines the manner in which the shipping firms use their financial reports in managing their profitability, efficiency, leverage and liquidity. On the other hand, the risks the companies are exposed to are brought out as well as effort they make to influence their financial prospect.