FINANCIAL ANALYSIS

British Sky Broadcasting Group plc

British Sky Broadcasting Group plc

Introduction

The study is related to British Sky Broadcasting which particularly focuses on the analysis of financial report of 2011. This paper focuses on the financial status of British Sky Broadcasting Group plc. The presentation of financial report of 2011 of the company is more user friendly as compared to the report of 2010. This study will describe the importance of choosing the right strategy, it includes the model of the strategy in use. The strategic choice of British Sky Broadcasting Group plc makes the company a leader in the industry. Internal and external analysis of British Sky Broadcasting Group plc shows the set of managerial decisions and actions that determine the long run performance of a group. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control.

Audit Report

The Audit Committee of British Sky Broadcasting Group plc is chaired by Andrew Higginson and the other members are Allan Leighton and Dame Gail Rebuck. The CFO and representatives from the external auditor and the internal audit department attend meetings at the request of the Audit Committee. The CEO and other business and finance executives attend meetings from time to time. The Audit Committee Chairman reports regularly to the Board on its activities. David DeVoe and Arthur Siskind have a standing invitation to attend meetings of the Audit Committee. The external auditor of the company may possible be doing the audit again in the next year. According to the audit report of 2011, the Directors has the responsibility of maintaining and establishing the risk management and the internal control system which help in reviewing the effectiveness of the company (Richard, 2007, 34-46). Moreover, the audit report of the company dated about two months after Sky's financial year end because the audit of the company is based on the published financial report of British Sky Broadcasting.

Performance Analysis

The earnings per share of British Sky Broadcasting for 2011 is 0.46 which is less than 2010 that is 0.504. The earnings per share is the net income of a company divided by the number of shares that make up its capital which is an important element for determining the performance. Earnings per share is one of the valuation parameters of action, it allows an assessment of company performance. Earning per share is a financial measure equal to the ratio of net profit of the company available for distribution to the annual average number of ordinary shares. Earning per share is one of the main indicators used to compare the investment attractiveness and efficiency of companies operating in the stock market (Paul, 2009, 139-152). Earnings adjusted for the company divided by the number of actions s existing and create. More simply, this is the result divided by the number of shares. It is mainly used to calculate the PER, and to know that part of profit allocated to each share. This allows comparison over several years even as the number of shares could change (Paul, 2009, ...