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Eni Financial Analysis Essay

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Conclusion: The above analysis shows that the company needs to gain a stronger presence in the sectors by taking control of their distribution and purchasing. Possible New Strategy: This suggests that our company should counteract this by integrating backwards with their competitors and use vertical integration. Rationale:The company needs a competitive advantage to increase the company's powers from outside influential sources. Financial Analysis: Looking at Eni’s financial statements there is a lot you can see that Eni is doing well with and what they need improvement on. The first statement to speak about is the income statement which shows a significant increase of revenue for Eni from, 1997 to 2003. The amount for 1997 is 34,323 and for 2003 it is, 52,400. This shows that Eni has increased their prices for their products and they’ve also increased the amount of these products they’ve sold. From the income statement we …show more content…

These number combined with the increase of inventory amounts (2002=3,355, 2003=3,200)and the (4.6% decrease)operating cash flow shows that because of the year's decrease in inventory and lack of sales the amount for operating cash flow has decreased from 11,091 to 10,827 in 2003. This could show that the company isn't managing their inventory well or they reduced the cost of their products they are selling so the amount from the previous years sales isn't equal or greater than the current year's sales for 2003. The long-term debt as well as the total liabilities need to decrease (LTD=6,550, TL=37,457). The total assets Eni has accumulated are growing which is great but there is a slight decrease from 2002 when they were, 69,000 and decreased to 65,808. This is why action needs to be taken before it decreases any

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