FINANCIAL REPORTING

Financial Reporting

Task 1: Hochschild Mining Plc

Executive Summary

In this study of Hochschild Mining Plc, we try to explore the concept of the strategic management accounting. The main focus of the research is on the financial performance of Hochschild Mining Plc especially the financial ratios. The research also analyzes many aspects of financial performance of Hochschild Mining and tries to gauge its effect on the overall company's strategy. Finally, the research describes the factors which are responsible for investors to invest and tries to describe the overall effect of financial ratios on Hochschild Mining's financial performance.

Introduction

Hochschild Mining plc, a precious metals company, engages in the exploration, mining, processing, and sale of silver and gold deposits. It principally operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina, as well as one open pit mine in northern Mexico. The company was founded in 1911 and is based in London, the United Kingdom. Hochschild Mining is a leading underground precious metals producer operating in the Americas with a primary focus on silver and gold. Hochschild Mining plc is a publicly held company listed on the Main Market of the London Stock Exchange.

Context

This paper focuses on the financial status of Hochschild Mining plc. This study will describe the importance of choosing the right strategy. It includes the model of the strategy in use. The strategic choice of Hochschild Mining plc makes the company a leader in the metal industry. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Hochschild Mining plc show the set of managerial decisions and actions that determine the long run performance of the corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control. Hochschild Mining plc is one of the metal mining companies in UK which helps in discovering metals like silver and gold etc.

Overview

The financial performance of Hochschild Mining plc shows that the major portion of the company's assets not comprised of liabilities; which is a, good indication for the company as compared to other companies in the Metal industry that are BHP Billiton plc, Rio Tinto plc and Xstrata plc; but it shows that the Hochschild Mining is not borrowing or borrowing limited from the market, this may be due to various reasons like poor reputation in the market etc. which is not a good indication for the company. However, the company's equity seems good or satisfactory. In addition to this, the current assets and current liabilities reflect that the Hochschild Mining plc's assets structure is in good shape, which shows that, the company can meet its financial obligations, if some sort of financial loss occurs. In addition to this, past studies states that the financial analysis are to determine whether there are liquidity problems, the study of profitability determines the evolution of the company and return on invested capital, management and analysis of related variables involved in the short term financing, obtaining rotations and time ...