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Write 7 pages with APA style on The Financial Reporting of ITV plc. ITV plc is a company established in the United Kingdom in the communication & media industry. The company has captured and penetrated television market to the tone of becoming UK’s biggest commercial service broadcaster. Broadcasting companies such as ITV are highly dependent on advertising revenues. The company has various digital channels as well as a highly diversified programming offering for its clients in the UK and internationally. The internet business is a great opportunity to export the material of the station to other markets such as the North American market. ITV was created in 2003 after the merger of Carlton & Granada Corporations. The international production businesses of the company promise to be a source of future income which was created by the company’s ability to forecast the marketplace and make strategic moves to further enhance the multiple sources of renewable income a company in the television and media broadcasting business needs to be successful.

In 2006 ITV obtained 2189 million euros in sales globally. The firm performed very well financially in comparison with the communication industry. In order to show the company’s achieved a financial ration analysis of the financial statements of ITV was performed and compared to the communication services industry SIC 4899. Appendix A shows a ratio analysis of ITV along with comparative data from the performance of the communications industry. The company’s net margin in 2006 was over 10% which is extremely good considering the industry had a -1.6% net margin (Dun & Bradstreet, 2007). The return of assets of the company was 7.8% which is 10.2% higher than the industry median performance of -3%. The company’s debt to equity ratio is a bit higher than the industry, but considering the way, ITV invested its capital the debt was put to good use.