Financial Analysis

explanatory Essay

1607 words

Financial statements are vital for any organization regardless of the size or method of ownership. The financial statements of an organization include the balance sheet, the income statement, the statements of owners’ equity and the statement of cash flows. The reports provided by financial statements are necessary for internal and external use. Ratios for analysis and comparison measure an organization’s performance (Holt, 2014, p. 22) and are prepared using the information from the financial reports. Financial analysis judges an organization’s history and collects information to project its future (Holt, 2014, p. 25). To examine the ongoing profitability of an organization, pro forma financial statements are prepared. Projecting Earnings and Cash Flow Pro forma financial statements forecast or project the financial statements for the future (Ross, Westerfield, & Jordan, Essentials of Corporate Finance, 2011, p. 271). Projecting earnings and cash flow shows future expectations. These statements are essential for assessments by internal and external groups to use in planning, operating, investing and financing decisions. Financial institutions use pro forma statements for an organization’s loan consideration. The pro forma statements forecast whether an organization can cash flow the loan payments. Pro forma statements provide insight into the likelihood of the organization remaining solvent. Qualitative analysis, quantitative analysis and sensitivity analysis are the three steps in developing pro forma financial statements. Qualitative analysis gauges the industry as a whole and uses the same process to analyze an organization. Robert Morris Associates, Standard & Poor’s, Value Line, and others provide surveys for the industry... ... middle of paper ... ...nd unprejudiced analyses. II Timothy 6:9 (NIV) tells us the desire for riches leads to temptation and these harmful desires ruin men. The numbers a manager presents must be impartial and as accurate as possible. The desire for money and success should not overshadow honesty and truth when preparing pro forma financial statements. Works Cited Fackler, M. (Ed.). (2006). 500 Questions & Answers from the Bible. Uhrichsville, OH: Barbour Publishing, Inc. Holt, R. N. (2014). Understanding Corporate Financew (Fifth ed.). Ivy Software. Holy Bible - New International Version. (1986). Zondervan. Ingram, C. (2007). Good to Great in God's Eyes. Grand Rapids, MI: Baker Books. Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2011). Essentials of Corporate Finance (Seventh ed.). New York, NY: McGraw-Hill/Irwin. Warren, C. S. (2012). Accounting. Mason, OH: Cengage Learning.

In this essay, the author

Explains that financial statements are vital for any organization regardless of its size or method of ownership. ratios for analysis and comparison measure an organization’s performance and are prepared using the information from the financial reports.
Explains that capital investments increase firm's assets by providing returns for a period greater than one year. capital budgeting evaluates capital investment proposals and uses qualitative and quantitative analysis.
Explains that capital budgeting is necessary when considering mergers or acquisitions. acquisitions occur when one organization absorbs another and adds value to the acquiring organization.

Explains that financial statements are vital for any organization regardless of its size or method of ownership. ratios for analysis and comparison measure an organization’s performance and are prepared using the information from the financial reports.
Explains that capital investments increase firm's assets by providing returns for a period greater than one year. capital budgeting evaluates capital investment proposals and uses qualitative and quantitative analysis.
Explains that capital budgeting is necessary when considering mergers or acquisitions. acquisitions occur when one organization absorbs another and adds value to the acquiring organization.
Explains that a financial manager determines the financial needs and efficiency of the organization to raise the capital necessary to remain viable.
Explains that financial managers must understand corporate finance and forecast and prepare pro forma financial statements. the desire for riches leads to temptation and these harmful desires ruin men.
Explains fackler, m. (ed. ), 500 questions & answers from the bible. barbour publishing, inc.
Explains that ross, s. a., westerfield, r. w. & jordan, b. d. (2011). essentials of corporate finance.
Explains that pro forma financial statements are essential for internal and external groups to use in planning, operating, investing, and financing decisions.
Explains that managers realize an organization must create value to increase the value of the organization’s stock.
Explains how the internal rate of return determines if a capital investment will exceed other market investments with the same risk factors.

Click here to unlock this and over one million essays

Continue Reading Check Writing Quality

Harness the Power of AI to Boost Your Grades!

Haven't found what you were looking for? Talk to me, I can help!

Understanding Financial Statements and Cash Flow
explanatory essay
In conclusion, a company’s financial statements regarding its financial position are critical to all concerned. First and foremost, these financial statements provide critical tools for companies to make decisions to improve its share value in the global market of fierce competition. Secondly, they provide accountability to shareholders and stakeholders in the company providing better stability in its business practices and requirements regarding the Securities Exchange Commission (SEC) and General Accepted Accounting Principles (GAAP). Lastly, financial statements paint a picture that gives a measurable to the success of a dream once birthed long ago by an entrepreneur to get an idea to the marketplace with great expectations of striking it rich.
In this essay, the author
- Explains that an entrepreneur's dream of starting a business is all about getting an idea to the marketplace with great expectations of striking it rich.
- Explains that success is measured based on the bottom line comparing company profitability from one year to the next in comparison to its competitors.
- Explains the purpose of the balance sheet, which is to show the financial position or value for a particular period of time.
- Explains that an entrepreneur's dream of starting a business is all about getting an idea to the marketplace with great expectations of striking it rich.
- Explains that success is measured based on the bottom line comparing company profitability from one year to the next in comparison to its competitors.
- Explains the purpose of the balance sheet, which is to show the financial position or value for a particular period of time.
- Explains that a company's assets are items of value to the company that are both tangible and non-tangible used to provide products or services for sale.
- Lists the company's liabilities on the balance sheet based on their due dates. they are broken down into current and long-term liabilities.
- Explains the shareholders' equity section of the balance sheet known as the company's capital or net worth. the shareholders' portion is their investment in purchased stock minus incurred costs to run the business.
- Explains that the balance sheet shows a snapshot shot of the company's assets minus liabilities and shareholders' equity. the assets column on the right side must equal the liabilities.
- Explains that the second financial statement is the income statement, which takes into account revenue, cash inflow, minus expenditures to operate the business, and cash outflow to determine the company's net worth.
- Explains that the third financial statement used among businesses is the statement of retained earnings. the purpose of this statement is to show shareholders the company's ability to reinvest for future growth in the market.
- Explains that the statement of cash flow summarizes the amount of money flowing in and out of a company.
- Concludes that a company's financial statements are critical to all concerned. they provide critical tools for companies to make decisions to improve its share value in the global market of fierce competition.
1226 words
Read More
Financial Analysis And Financial Statements
analytical essay
Financial analysis and research plays a key role whenever we need to evaluate an investment. To evaluate a business for investment, an investor or a creditor would begin by looking at the financial statements, the balance sheet, the income statement and the cash flow statement. Out of the many ways to analyse these statements, the simplest and most commonly used one is the calculation of financial ratios.
In this essay, the author
- Explains that the research problem is to find out whether financial analysis through ratios is an appropriate indicator of the financial performance of a firm.
- Explains that the study would consider financial data of companies from ace equity database, and use last 5 year data and ratios as independent variable and firm stock price as dependent variable.
- Explains that fazlzadeh alireza, m. p., evaluated the financial ratio capability to predict the financial crisis of companies in the iup journal of behavioral finance.
- Explains that the research problem is to find out whether financial analysis through ratios is an appropriate indicator of the financial performance of a firm.
- Explains that the study would consider financial data of companies from ace equity database, and use last 5 year data and ratios as independent variable and firm stock price as dependent variable.
- Explains that fazlzadeh alireza, m. p., evaluated the financial ratio capability to predict the financial crisis of companies in the iup journal of behavioral finance.
- Explains that evaluating the effects of various financial ratios on company, business and economics research journal, volume 6 number 1.
- Explains that decomposed financial ratios predict stock returns and fundamentals better? the financial review 47.
- Explains that financial analysis and research plays a key role whenever we need to evaluate an investment. financial ratios are simply mathematical comparisons of financial accounts.
- Explains that financial analysis is a process of evaluating units of business, to determine their appropriateness for investment.
- Explains that creditors would be interested in a company's ability to pay back its debt, and investors would examine financial statements.
- Explains that financial ratios are mathematical comparisons of financial statement accounts or categories that help investors, creditors, and internal company management understand how well a business is performing.
- Analyzes the impact of financial indicators on firm financial performance. they used correlation analysis and five different types of ratios as independent variables to differentiate firms into two categories.
- Explains the objective of the paper, which is to determine whether a firm's financial position can be achieved satisfactorily by the use of financial ratios.
- Proposes using a selection of ratios to examine firm's financial performance in order to provide answers to the above questions.
1360 words
Read More
The Financial Performance of Kraft and General Mills
argumentative essay
The report will give an overview of each company, an explanation of what type of companies we are analyzing, the purpose of each company in terms of its goals and objectives, the products and services each company produces, and what future prospects we see these companies having. The reader should gain an understanding of each company as well. We also analyze the type of industry these companies are competing in. This will help us understand where each company fits in the marketplace. This is important because it places the two companies into a broader picture. The most important part of the financial report is the financial statement analysis. In this, the annual report of each company was analyzed. It studies the firms’ past earnings to understand their operating performances. It also forecasts future profitability and risk (short-term and long term). The financial statements give information on how these risks affect expected return. In the end, the reader will have an understanding of the two companies, the industry in which they operate, its financial standing in the past and present, and future profitability.
In this essay, the author
- Analyzes the financial performance of kraft and general mills, global consumer foods companies that develop different packaged food products. the main goals of these companies are to meet consumers' needs and preferences while generating superior returns.
- Explains the importance of the financial statement analysis, which analyzes the companies' past earnings, future profitability, and risk.
- Explains that the food processing industry is an extremely competitive environment. consumers have wide variety of choices, which makes it extremely important for the producers to be responsive to quick shifts in consumption patterns.
- Analyzes the financial performance of kraft and general mills, global consumer foods companies that develop different packaged food products. the main goals of these companies are to meet consumers' needs and preferences while generating superior returns.
- Explains the importance of the financial statement analysis, which analyzes the companies' past earnings, future profitability, and risk.
- Explains that the food processing industry is an extremely competitive environment. consumers have wide variety of choices, which makes it extremely important for the producers to be responsive to quick shifts in consumption patterns.
- Explains that kraft foods is the largest brand food and beverage company with headquarters in north america and the second largest in the world.
- Explains that kraft foods has several strategies for long-term success: building superior brand value, transforming their portfolio, expanding the global scale of the business, and driving out cost and assets.
- Explains that general mills is an international company, similar to kraft, in the food processing industry.
- Compares kraft and general mills by comparing their financial trends. kraft is sporadic and/or static from year to year.
- Analyzes how both companies were able to increase their ability to use assets to generate earnings each year, but with general mills making better gains.
- Compares gm's roa and profit margin with kraft, where the two companies' roce exceeds their ro a, indicating shareholders are benefiting.
- Explains that an analysis of liquidity is important to perform as well. only recently did the two companies reel in their liabilities and obtain ratios over one, while kraft maintains a more stable ratio hovering at about even.
- Compares the long-term liquidity picture of kraft and general mills. kraft has less than exemplary debt ratios and cash flow, but it has an acceptable debt-equity ratio and superb interest coverage.
- Explains that kraft and gm are highly competitive in the food processing industry and are able to increase their ability to use assets to generate earning each year.
1301 words
Read More
Financial Statement Analysis Essay
comparative essay
Financial statements are formal reports which show the current financial position of an entity. There are three main types of financial statements; the balance sheet, the income statement and the cash flow statement (Business Dictionary, 2016). Financial statement analysis refers to the analysis and interpretation of those three main financial statements. It can also be defined as understanding the risk and profitability of an entity (Ready Ratios, 2013). There are different techniques of financial statement analysis including ratio analysis, vertical or common size analysis and horizontal analysis or trend analysis. Another technique sometimes applied is trend analysis of the ratio analysis (Hancock, Robinson and Bazley, 2015).
In this essay, the author
- Explains that the ceo of cardno is michael renshaw and the chairman is john marlay. the following table details their qualifications and remuneration.
- Explains that the roa ratio measures how effectively a company can earn return on its investment in assets.
- Explains that financial statements are formal reports which show the current financial position of an entity. there are different techniques of financial statement analysis including ratio analysis, vertical or common size analysis and horizontal analysis.
- Explains that the ceo of cardno is michael renshaw and the chairman is john marlay. the following table details their qualifications and remuneration.
- Explains that the roa ratio measures how effectively a company can earn return on its investment in assets.
- Explains that financial statements are formal reports which show the current financial position of an entity. there are different techniques of financial statement analysis including ratio analysis, vertical or common size analysis and horizontal analysis.
- Describes the key stakeholders of cardno, including the government, employees, and shareholders.
- Explains that cardno has eight directors on the board, all of whom have academic qualifications. the ratio of cash to non-cash ceo remuneration is 699360:0.
- Compares the shares of cardno limited and asx200 over the 6 months prior to the 2014 financial year.
1022 words
Read More
Ratio Analysis Essay
explanatory essay
Financial statements are those statements which provide information about profitability and financial position of a business. It includes two statements, i.e., profit & loss a/c or income statement and bal...
In this essay, the author
- Explains that with the help of the ratio, one can locate the weak spot or problem of a company.
- Explains the objective of the project is to analyze our indian steel sector for investment purpose by monitoring growth rate and performance on the basis of historical data.
- Explains that secondary data refers to the information or facts already collected.
- Explains that with the help of the ratio, one can locate the weak spot or problem of a company.
- Explains the objective of the project is to analyze our indian steel sector for investment purpose by monitoring growth rate and performance on the basis of historical data.
- Explains that secondary data refers to the information or facts already collected.
- Defines ratio analysis as the systematic use of ratio to find a firm's strengths and weaknesses as well as its historical performance and current financial condition.
- Explains that ratio analysis is a scientific tool for assuming the real worth of an enterprise, its performance, and its pitfalls.
- Explains that the study will cover the period of 2009-2013 for analyzing the financial statement such as income statements and balance sheet.
621 words
Read More
Financial And Management Accounting, The Fundamentals Of Management Accounting
explanatory essay
Financial accounting is specialised to track a company’s financial transactions which are recorded, summarised and presented in a financial report or statements such as balance sheets, income statements, statements of cash flows and statements of owner’s equity. These statements are annual basis and considered external as they are given to people or stakeholders outside of a company. The audience of financial accounting reports are stakeholders or owners, lenders, board of directors and financial institutions, which are known as the primary recipients. Financial accounting enables them to see how the company has performed in the past. Once a company’s stock is publicly traded, its financial statements will be spread and the information will reach secondary recipients. They are competitors, employees, labour organisations, customers and investment analysts.
In this essay, the author
- Explains the difference between financial and management accounting and how costs are classified using examples. accounting is a systematic process that identifies, records, reports and analyses financial transactions.
- Explains that financial accounting is specialised to track a company's financial transactions which are recorded, summarised and presented in financial reports.
- Explains the purpose of financial accounting, which is to provide enough information about a company's performance to external parties.
- Explains the difference between financial and management accounting and how costs are classified using examples. accounting is a systematic process that identifies, records, reports and analyses financial transactions.
- Explains that financial accounting is specialised to track a company's financial transactions which are recorded, summarised and presented in financial reports.
- Explains the purpose of financial accounting, which is to provide enough information about a company's performance to external parties.
- Explains management accounting is used by managers to make day-to-day and short-term decisions within an organisation. it analyses and generates monthly or weekly reports for a company’s internal audiences.
- Explains that management accounting is forward-looking rather than historical. it supports decision-making instead of being used by external people. financial accounting follows gaap with lots of rules and regulations.
- Explains that reports in managerial accounting are future-oriented, while financial accounting reports are annual and historically factual with predictive value to external people who wish to make financial decisions.
- Explains that financial accounting aims to provide information to external parties, while managerial accounting helps managers make day-to-day decisions.
- Explains that management accounting is supported by cost accounting, which deals with the calculations and measurements of resources utilised for production and service provision.
- Explains the classification of costs based on elements, functions, behaviour and identify with the product. material cost is the cost of components used as input of finished products.
- Explains that costs are ascertained on the basis of functions, which refers to the question ‘why costs have been incurred’.
- Explains the difference between direct cost and indirect cost. direct cost is the cost that can be directly and completely identified with a product, job, process, or service.
- Explains the difference between fixed and variable costs. fixed costs remain constant or unaffected within a certain level of output or sales. variable costs vary in direct proportion to the output.
1097 words
Read More
Equity, Cash Flow, And Notes Analysis
explanatory essay
The success of a business entity depends on its ability to properly create, understand and analyze the financial statements. Financial statement analysis is important for understanding profitability and a firm's financial condition. These documents help a firm in many ways, such as in making better financial decision and creating a clearer picture to attract creditors and investors. In highlighting the financial numbers for Wal-Mart, Team A will address the owner¡¦s equity and the cash flow pieces of the business ending fiscal period January 31, 2004. Supportive explanatory notes will help in providing the analysis needed to understand the firm and to state our position in support of the Wal-Mart philosophy that makes it a thriving company.
In this essay, the author
- Explains that financial statement analysis is important for understanding profitability and a firm's financial condition. team a will address the owners equity and cash flow pieces of the business ending fiscal period january 31, 2004.
- Explains that retained earnings have increased steadily over the past three years from 29,984 to 37,576. retained earnings are a measure of profitability of the business, less all dividends declared on all classes of stock.
- Analyzes how dividends paid to shareholders increased from $0.28 to $0.36 for a 27% increase, indicating rational management. the company is returning money that shareholders cannot invest at above-average rates of return.
- Explains that financial statement analysis is important for understanding profitability and a firm's financial condition. team a will address the owners equity and cash flow pieces of the business ending fiscal period january 31, 2004.
- Explains that retained earnings have increased steadily over the past three years from 29,984 to 37,576. retained earnings are a measure of profitability of the business, less all dividends declared on all classes of stock.
- Analyzes how dividends paid to shareholders increased from $0.28 to $0.36 for a 27% increase, indicating rational management. the company is returning money that shareholders cannot invest at above-average rates of return.
- Explains that return on shareholders equity was 19.4 % in 2002, 20.9% in 2003, and currently 21.3% for 2004.
- Explains that wal-mart also purchased company stock. this affects the company's after-tax cost of borrowing, total capitalization targets and expected future cash needs.
- Explains that the number of outstanding shares of stock has decreased due to the company buying back stock.
- Explains that net income from continuing operations has increased from 6,448 to 8441, representing an increase of 37%.
- Explains that since sales revenue increased over prior year, the decrease in accounts receivable indicates that the company is successful in collecting debt incurred by customers.
- Explains that the increase in inventory reflects the additional products needed to keep up with customer demand.
- Explains that an increase in accounts payable indicates that we are holding onto money longer (stretching our payables) in addition to buying more product.
- Explains that international investments decreased over last year, but still enough to decrease the amount of available cash.
- Explains that there was a cash inflow from issuance of long-term debt. major increase from prior year.
- Explains the purchase of 20.2 million shares of seiyu for approximately $38m.
- Explains that they paid off some debt over and above last year, which resulted in a major decrease in cash.
- Explains that other financing activities resulted in an inflow of cash, whereas prior year recognized an outflow.
- Explains that the statement of changes in owner's equity shows the changes that took place in the amount of equity during a period of time.
- Explains that the statement of cash flows is one of the hardest financial statements to read and interpret.
- Explains that wal-mart is providing enough cash from its operating activities to sustain its investing and financing activities, which indicates that the business itself is profitable.
- Explains that notes to financial statements should be read in conjunction with the financial statement. wal-mart's financial information for all years has been restated to reflect the sale of mclane company.
1075 words
Read More
Strategy And Implementation: La Roulette Bijoux
explanatory essay
Financial statements are essential to the success of a small business. Financial statements have a value that goes far beyond preparing tax returns or applying for loans, and can be used as a roadmap to steer you in the right direction and help you avoid costly breakdowns (U.S. Small Business Administration [USSBA] 2014).
In this essay, the author
- Explains la roulette bijoux's marketing and sales strategy will utilize search engine optimization, social media, networking, client referrals, and targeted customer acquisition to develop visibility for the company.
- Explains that la roulette bijoux will rely on five activities in its marketing efforts.
- Explains social media marketing: engaging customers through conversation and building trust by giving insight into the company and creative process.
- Explains la roulette bijoux's marketing and sales strategy will utilize search engine optimization, social media, networking, client referrals, and targeted customer acquisition to develop visibility for the company.
- Explains that la roulette bijoux will rely on five activities in its marketing efforts.
- Explains social media marketing: engaging customers through conversation and building trust by giving insight into the company and creative process.
- Explains that by providing outstanding customer service, current customers become long-term customers and refer their friends.
- Explains that la roulette bijoux's first step is to identify collaborative opportunities, determine how they can offer value, and then network with the decision makers at those companies.
- Explains catherine's sales strategy will be to utilize her portfolio of past work to qualify a sales lead.
- Explains that with personalization options, customers can select a listed item and request changes to suit their particular style or requirements.
- Explains custom order options allow customers to request designs based off external inspiration, previously sold out items or for specific occasions.
- Explains that the shop's personal touch is implicit, but reinforced through handwritten 'thank you' notes sent with every order.
- Explains that special offers are available on a seasonal basis to returning customers and/or social media subscribers and followers.
- Explains that the online shop is hosted by etsy, a well-known global marketplace for handcrafted items. information is disseminated regarding the business, owner and creative process, providing the targeted market with sufficient knowledge of the products and services.
- Explains that the marketing strategy for la roulette bijoux's website will be based on the inclusion of the internet address on all materials. search engine optimization (seo) actively comes into play through keywords, tags and descriptions linking back to the online shop.
- Explains that etsy facilitates the implementation of the online shop through their seller handbook, tutorials, and blog entries. catherine's creative skills will be applied to the brand design and identity, as well as the product photography.
- Illustrates a quarterly plan of work for the operation of la roulette bijoux. the chart is categorized under key headings and color-coded for ease of peruse.
- Explains that figure iii (appendix iii) outlines the estimated start-up costs for la roulette bijoux.
- Explains la roulette bijoux's simple budget for a 6-month period during the first year of operations.
- Explains that financial statements are essential to the success of a small business. they can be used to steer you in the right direction and avoid costly breakdowns.
- Explains that figure 5 (appendix v) outlines the projected profit and loss for the third month of operations of la roulette bijoux.
- Explains that figure 6 (appendix vi) outlines the projected cash flow for the first six months of operations of la roulette bijoux.
- Explains that figure 7 (appendix vii) outlines the projected balance sheet for the first six months of operations of la roulette bijoux.
- Analyzes how catherine's diverse background of business and creativity allows her to develop a diverse range of skills that can be readily applied to creating innovative product designs for la roulette bijoux.
- Explains that la roulette bijoux uses creative and business skillsets in its day-to-day functions. the management approach is one that combines key points from both for efficient operation.
- Explains that income tax is calculated after allowable expenses and any tax-free allowances have been taken into account. limited liability businesses are also subject to corporation tax.
1248 words
Read More
Financial Accounting
explanatory essay
Accounting - It is the process of identifying, recording and summarizing economic data about the organization and reporting it to decision makers.
In this essay, the author
- Describes three statements that are very important for decision makers and are prepared by accountants.
- Explains that a sole proprietor is liable for all business liabilities.
- Explains that a corporation is an entity created under state laws that has one or more owners who have limited liability.
- Describes three statements that are very important for decision makers and are prepared by accountants.
- Explains that a sole proprietor is liable for all business liabilities.
- Explains that a corporation is an entity created under state laws that has one or more owners who have limited liability.
- Explains that cogs – cost of good sales or cos = cost to the corporation for the item sold.
- Defines auditor as a person who examines the information used by managers to prepare financial statements and attests to the credibility of those statements.
- Explains that accounting is the process of identifying, recording and summarizing economic data about the organization and reporting it to decision makers.
- Explains that annual reports are prepared by corporate management to be distributed among current investors and future prospects. form 10k is submitted with sec that contains the financial statements of the corporation.
- Explains that assets = liabilities + paid in capital + revenues (total sales) – expenses and sacrifices, and economic resources that either help future cash inflow (adding) or reduce outflow of cash.
- Explains that paying dividends is not an expense since it is the distribution of wealth to its owners.
- Explains open account, account payable, and compound entry, which impact more than one account on balance sheet.
- Explains that privately owned is a corporation owed by an individual, group of partners, or small family, in which shares are not publicly sold. publicly owned is the corporation that sells its shares of ownership to the general public.
- Explains paid-in capital (pic) in excess of par-value when issuing stock. common stock is the par value of the stock purchased by common shareholders of a corporation.
- Explains that public accountants charge a nominal fee for their services, while private accountants work for government such as irs, businesses, or other not for profit organizations.
- Explains that gaap applies to all broad concepts and detailed practices to be followed in preparing and distributing financial statements.
1010 words
Read More
accounting
comparative essay
In conclusion, using financial statements in managerial accounting helps with the planning, controlling, and decision making process of a company. The information from the financial statements are used to analyze and establish budgets, forecast, variance reports, and ratios relating to the stability of the company. Managerial accounting data gives information driven info to these decision which can enhance decision making over the long haul. Business directors can influence this influential device to help make their business greater by seeing how managerial accounting profits regular business decision connections...
In this essay, the author
- Explains that the paper will discuss the information found in the financial statements such as balance sheet, income statement, statement of cash flows, and statements of stockholders' equity.
- Explains that planning, controlling, and decision-making should begin with setting objectives and determining how to accomplish them. controlling includes gathering feedback to guarantee that the arrangement is legitimately executed.
- Explains that the balance sheet is one of the major financial statements used by accountants and business owners.
- Explains that the paper will discuss the information found in the financial statements such as balance sheet, income statement, statement of cash flows, and statements of stockholders' equity.
- Explains that planning, controlling, and decision-making should begin with setting objectives and determining how to accomplish them. controlling includes gathering feedback to guarantee that the arrangement is legitimately executed.
- Explains that the balance sheet is one of the major financial statements used by accountants and business owners.
- Concludes that using financial statements in managerial accounting helps with the planning, controlling, and decision making process of a company.
- Explains that planning is the correspondence of an organization's objectives. budgets recognize the sources or inflows of financial stakes, and the usage of fiscal holdings.
- Explains that forecasting begins with certain assumptions dependent upon the management's experience, learning, and judgment. the method of affectability examination relegates qualities to unverifiable components variables.
- Explains that variance analysis investigates the underlying drivers of a material change in management accounting. managerial accountants are prone to discover the genuine cost or real amount of materials utilized.
- Explains that accounting ratios are utilized to portray the relationship between accounting information. they are figured using solid, accurate fiscal data.
1219 words
Read More
How to Perform Basic Financial Analysis
explanatory essay
The two main sources of data for financial analysis are a company's balance sheet and income statement. The balance sheet outlines the financial and physical resources that a company has available for business activities in the future. It is important to note, however, that the balance sheet only lists these resources, and makes no judgment about how well they will be used by management. For this reason, the balance sheet is more useful in analyzing a company's current financial position than its expected performance.
In this essay, the author
- Explains that the balance sheet outlines the financial and physical resources that a company has available for business activities in the future, and makes no judgment about how well they will be used by management.
- Explains the main elements of the balance sheet are assets and liabilities. assets include both current assets (cash or equivalents that will be converted to cash within one year) and noncurrent assets.
- Explains that the balance sheet includes two categories of liabilities: current liabilities and long-term debts. liabilities are important to financial analysts because businesses have the same obligation to pay bills regularly as individuals.
- Explains that the balance sheet outlines the financial and physical resources that a company has available for business activities in the future, and makes no judgment about how well they will be used by management.
- Explains the main elements of the balance sheet are assets and liabilities. assets include both current assets (cash or equivalents that will be converted to cash within one year) and noncurrent assets.
- Explains that the balance sheet includes two categories of liabilities: current liabilities and long-term debts. liabilities are important to financial analysts because businesses have the same obligation to pay bills regularly as individuals.
- Explains that the balance sheet includes stock-holders' equity accounts, which detail the permanent capital of the business. the more equity a business holds, the better its ability to borrow additional funds.
- Explains that the income statement provides information about a company's performance over time. revenues, expenses, and net profit or loss are the main elements.
- Explains that a company's over-all financial health can be assessed by examining three major factors: its liquidity, leverage, and profitability.
- Explains that liquidity refers to a company's ability to pay its current bills and expenses. all small businesses require liquidity, though start-ups and young companies are often not very liquid.
- Explains that companies run into problems with liquidity because cash outflows are not flexible, while income is uncertain. creditors expect their money when promised, but the cash generated does not follow a set schedule.
- Explains that leverage refers to the proportion of a company's capital that has been contributed by investors as compared to creditors.
- Explains that many measures of profitability involve calculating the financial return that the company earns on the money that has been invested.
- Explains that financial ratios are determined by dividing one number by another and are usually expressed as a percentage. they enable business owners to examine the relationships between seemingly unrelated items and gain useful information for decision-making.
- Explains that there are over 150 recognized financial ratios that can be computed in a financial analysis. however, small business owners and managers only need to be concerned with small sets to identify where improvements are needed.
- Explains that kristy and diamond recommend using current, quick, and liquidity ratios to assess a company's liquidity.
- Defines the quick ratio as quick assets (cash, marketable securities, and receivables) / current liabilities. the liquidity ratio eliminates all current assets except cash from the calculation of liquidity.
- Explains that kristy and diamond recommend using the debt/equity ratio, which indicates the relative mix of the company's investor-supplied capital.
- Explains that kristy and diamond recommend using the return on equity (roe) ratio to measure a company's level of profitability.
- Concludes that financial analysis can be an important tool for small business owners and managers to measure their progress toward reaching company goals and competing with larger companies within an industry.
1778 words
Read More
Annual Report Financial Statements
explanatory essay
Melicher, Ronald W. and Norton, Edgar A. 2014. "Introduction to Finance: Markets, Investments, and Financial Management. 15th Edition". New Jersey: John Wiley and Sons,
In this essay, the author
- Explains the purpose of each of the financial statements that make up an annual report and lists the benefits of different financial ratios.
- Explains that an important part of financial planning for corporations is their annual report that is made up of an income statement, balance sheet, and statement of cash flows.
- Explains the purpose of an income statement, which is to report the revenue generated and expenses incurred by a corporation for the past year.
- Explains the purpose of each of the financial statements that make up an annual report and lists the benefits of different financial ratios.
- Explains that an important part of financial planning for corporations is their annual report that is made up of an income statement, balance sheet, and statement of cash flows.
- Explains the purpose of an income statement, which is to report the revenue generated and expenses incurred by a corporation for the past year.
- Explains candor equities limited. types of financial ratios, investing fundamentals.
821 words
Read More
Kotak Mahindra Annual Report Analysis
explanatory essay
Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with a more detailed understanding of the figures. These statements are also used as part of management's annual report to the stockholders.
In this essay, the author
- Explains that financial statements provide an overview of a business' financial condition in both short and long term. they help in understanding the past performance of the company and making future predictions.
- Explains the purpose of an income statement, also called a profit and loss statement (p&l), to show managers and investors whether the company made or lost money during the period being reported
- Explains that the term "top line" refers to the total revenues or sales mentioned in the income statement.
- Explains that financial statements provide an overview of a business' financial condition in both short and long term. they help in understanding the past performance of the company and making future predictions.
- Explains the purpose of an income statement, also called a profit and loss statement (p&l), to show managers and investors whether the company made or lost money during the period being reported
- Explains that the term "top line" refers to the total revenues or sales mentioned in the income statement.
- Explains that the "bottom line" is the net profit that is calculated after subtracting the expenses from revenue. it represents the profit for the year attributable to shareholders.
- Explains that there has been a significant increase in the profits in 2008 as compared to 2007. the expenses have increased, but the income has also increased.
- Explains trend analysis calculates the percentage change for one account over a period of time of two years or more.
- Explains how it calculates the percentage change for all accounts by taking one account's figures as the base.
- Explains that the company is purchasing fixed assets on a conservative basis and is concentrating more on its savings and investments.
- Explains the statement of cash flows as an analytical tool that helps determine the short-term viability of a company.
- Compares the company's net cash inflow from operating activities in 2007 and its cash outflow in 2008, which shows it has made more purchases of fixed assets and invested less.
- Defines ratio analysis as the study and interpretation of relationships between various financial variables, by investors or lenders. it is used for comparing a company's financial performance to the market in general.
- Explains that financial statements provide information about the financial position, performance, and changes in an enterprise that is useful to a wide range of users in making economic decisions.
- Explains that a balance sheet or statement of financial position is an overview of the company's balances. assets, liabilities and ownership equity are listed at the end of its financial year.
- Explains current ratio, which measures the ratio of current assets to current liabilities. return on net worth measures return relative to investment in the company.
1724 words
Read More
Financial Analysis And Analysis Project
explanatory essay
I have selected topic-8 which is “An analysis and evaluation of the business and financial performance of an organization over a three year period” for my research and analysis project. The organization chosen here is a pharmaceutical company named “Beximco Pharmaceuticals Ltd.”(BPL) and decided to conduct a business and financial analysis between the periods from 01 January 2010 to 31 December 2012.
In this essay, the author
- Explains that they selected topic-8, "an analysis and evaluation of the business and financial performance of an organization over a three year period," for their research and analysis project.
- Explains that bpl is one of the leading pharmaceutical formulations and active pharmaceutical ingredients (apis) manufacturer and exporter in bangladesh.
- Explains the calculation of financial ratios using the recent annual reports of bpl, to reach a conclusion on its financial performance.
- Explains that they selected topic-8, "an analysis and evaluation of the business and financial performance of an organization over a three year period," for their research and analysis project.
- Explains that bpl is one of the leading pharmaceutical formulations and active pharmaceutical ingredients (apis) manufacturer and exporter in bangladesh.
- Explains the calculation of financial ratios using the recent annual reports of bpl, to reach a conclusion on its financial performance.
- Explains how the financial and non-financial performance of bpl has an impact on its share price in the market.
- Explains that they have developed an expertise on this specific topic from their work and acca qualification. bpl is a leading pharmaceutical company in bangladesh.
- Explains the mission of bpl, which is to improve human health and well-being by providing medicines which are modern, reasonably priced, and whose quality are of international standard.
- Explains how they decided to write their research project on beximco pharmaceuticals ltd.
1014 words
Read More