Maersk Line - A Company Analysis

Abstract

A company analysis of A.P. Moller Maersk gives the fundamental worth of the firm. It is a study done to understand how to analyze a giant company from the perspective of investors and creditors. The main purpose is to reveal the real picture and to find out whether the numbers in the financial reports really mean what they show. The models and theories used in this regard is the square model, agency theory along with the key performance indicators such as ratios, cash flow and other analysis that reveals the information asymmetry in the principal and agent relation. In our research mainly secondary data were used. The results obtained indicate that although there has been a continuous growth in the shipping industry but there have been some peculiarities in the financial statements of Maersk and we identify them as red flags in our analysis. To conclude we would like to add that there might me various techniques to analyze financial statements of a company but those techniques will only be effective if we can adjust the reported figures to minimize distortions.