Financial Statement Analysis over ENI’s Financial Statements

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Financial Statement Analysis over ENI’s Financial Statements
Abstract
Financial reports offer summaries of a company’s accounting and accounts statement. They include the principal indicators that affect earnings, expenditures, loss and profit. A review of ENI reveals that it is a global based company and has been operational for as a corporation for more than 60 years. In this case, the company is shown to be engaged in energy (including oil, gas and electricity) production across the world and its sale in Europe. The present research report reveals that the company is performing badly with regards to its financial position and has low profits. The results of ratio analysis show that its financial health is worsening, with the current assets exceeding liabilities and placing a strain on the inventory. In addition, there is low inventory turnover, an indication that there is low demand and low sales for its products. Besides that, it is experiencing operational inefficiency, low earnings on shares, and undervaluation. These are indications that there is poor leadership within the company. As a result, the analysis reveals that ENI is not an attractive investment opportunity.

Introduction
A financial report is a collection of facts and figures concerning a company that presents a brief accounting and accounts statement that an institution publishes to inform its investors and shareholders (who include suppliers, gov…