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PwC SWOT & Ratio Analysis..

BY: SAMMAR TAHIR


Strengths

 According to the statistics of ICAEW, PwC is the 2 nd


largest professional services firm in the world and is one
of the big four auditors.
 It provides its services to 429 out of 500 Fortune 500
companies and over 100,000 entrepreneurial and
private businesses. It has a large and diverse clientele.
 In addition to Audit and Assurance services PwC offers
diverse set of services to its clients including Advisory,
Legal, Tax and Entrepreneurial business services.
 It has a culture that encourages to act with integrity,
work in collaboration and makes you reimagine the
possible in order to stimulate innovative thinking.
 PwC’s global revenue reached $41.3 Billion in
Fiscal year 2018.
 Out of three, Two of PwC’s service lines had
higher revenue growth in Fiscal Year 2018 than
in Fiscal Year 2017.
 Competent and professional workforce is the backbone for continuous success of an enterprise
and PwC has skilled human resource. Around 250,930 employees globally, in 721 locations
across 158 countries. Amongst them 20% Partners and 49% new recruits are female
representatives.
Female representation in our global FY18 FY17 FY13
workforce

 PwC believes one of the things Global Leadership team 47% 50% 0%

that differentiate them from Network Leadership team 0% 0% 0%

their competitors is the talent of Global Board 33% 33% 11%

their people. And that talent is Strategy Council 0% 5% 0%

enhanced by taking measures Partners 20% 19% 17%

that would maintain employee Managing directors / directors 34% 33% 31%

satisfaction. Senior managers 41% 40% 38%

Managers 46% 46% 47%

Senior associates 50% 49% 49%

Associates 53% 52% 51%


Weaknesses

 Being in competition with the big 4 can be tough as maintaining reputation and quality work is
as challenging as attaining it in the first place. Therefore, cautious steps needs to be taken
because if your goodwill gets ruined once, it is difficult to restore it.
 Pressurized to do something different in order to win new clients and retain old ones. Therefore
without continuous adaptation, which is needed to cope with changes in the market, it will
become difficult to stop clients from moving to the competitors.
 A lot of prospective clients might think you are out of their league.
Opportunities

 Acquiring small and medium sized firms will be beneficial for PwC.
 There is an increase in enterprises that are looking for expert and innovative business
solutions.
 PwC can benefit from the prospect of growth and development in emerging markets.
 There are many opportunities in providing compliance solutions.
Threats

 Expansion of competitors will affect PwC’s business.


 During the periods of financial crisis, due to increase in business risk, companies tend to hide
real performance of their company.
 Slightest smudge on the reputation will result in a transfer of clients to equally renowned and
competent competitors.
Ratio Analysis
2018 2017
 The current ratio tells us whether a company has the capability to pay its short term liabilities.
The company’s current ratio has fallen from what it was in the previous fiscal year. In order to
ensure that it does not continue to fall in the coming year the company should:
 Better manage its receivables.
 Pay creditors as they fall due.
 The quick ratio has slightly improved as compared to the previous fiscal year. It can further be
improved the same way as current ratio.
 Return on Capital Employed percentage shows the efficiency with which the company uses its
capital in order to generate profits. ROCE has increased as compared to the year before. This
means that more profit can be reinvested back into the company which would result in
continuous growth of profits in the future.
 Gearing measures the percentage of an organisation’s debts to its equity. It has increased
from the previous year which means that the company has financed itself more through debt
than equity as compared to the year before.