Avis Rent a Car

Introduction

Avis Car Rental is a renowned brand for offering rent a car facility all over the world including 165 countries in 5200 different locations. The company was founded in 1946 by Warren Avis and since then the company has achieved heights of success. It began its operation in Europe, Canada and Mexico. It offers the services under the brands such as Avis Preferred, Avis First, Avis Cares, and Avis Access. The company operates in the US, the UK, Canada, Australia, and Sweden.

Financial Analysis

Financial analysis is an integral part of the decision making process. Analyzing the financial stability of the large departmental stores such as House of Fraser (Stores) Limited is immensely important. Financial ratio analysis not only helps gauge a firm's performance, it also helps decision making for investors and creditors. Financial performance refers to the methodical evaluation of the financial situation of an organization, person or a project. Several methods of financial analysis exist; however, ratio analysis is considered the most efficient in determining the financial position and performance of an organization.

Annual Report is an important document that helps us understand the financial and operational performance of the company. It helps us to assess company's strengths and weaknesses. . It helps all the stakeholders to get a good understanding about the company. Creditors, Investors, Regulatory Bodies, Central Bank, Suppliers and government bodies can take information about the company. It gives a complete picture of the company to various classes of society. The annual report includes not only the financial performance of the company, but the overall business information of the company. The main components of the Annual Report include Balance Sheet, Income Statement, Cash Flow, Financial Notes, Risk factors and Financial Highlights. In this paper, we will discuss the main components of Annual report and how they are influenced.

The first and foremost important component of the Annual Report is the Balance Sheet of the company, which is one indicator of company's strength. It shows that the assets a company possess, and how these assets of the company are financed, either through debt or equity. It also shows the composition of debt and equity through which the company is financing its debt. The second main component of the annual report includes the Income Statement of the Company. It enables the reader, to know the profitability of the company. It includes both Gross and Net Profit. A reader can easily understand and analyze the sales and Expenses Company is incurring during the annual year. Third most important component of the Annual Report is the Cash Flow Statement of the company. In certain cases, Cash flow of the company is some times more important than even Income Statement or Balance Sheet of the company, because it enables the reader to know the cash in hand of the company and the real cash inflow and outflow. On the other hand, Income Statement of the Company gives figures on Accrual basis. It also determines the breakup of cash flow through ...