4. DATA ANALYSIS & INTERPRETATION
TREND ANALYSIS:
In fiscal examination the course of progress over a time of years is of starting significance. Time arrangement and pattern investigation of proportion shows the method for changes. This kind of study is transcendently pertinent to the yield and misfortune account. It is reasonable that pattern of offers and net pay may be considered in the light of two variables. The general value level that may be found by and by is that various firms would be indicated at diligent development over time of years however to get a true pattern of development, the business figure ought to be balanced by a suitable record of general costs.
Proportion examination empowers a firm to take the time measurement
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The first task of the financial analyst is to select the information relevant to the decision under consideration from the total contained in the financial statement.
A ratio is a simple mathematical expression. It is a number expressed in terms of another number, expressing the quantitative relationship between the two. Ratio analysis is the technique of interpretation of financial statements with the help of various meaningful ratios. Ratios do not add to any information that is already available, but they show the relationship between two items in a meaningful way, which helps us to draw certain conclusions. Comparisons with related facts are the basic of ratio analysis.
Ratio may be used Comparison of a firm with its own performance in the part.for comparison in any of the following ways
Comparison of one firm with another firm in the industry.
Comparison of one firm with the industry as a whole.
Comparison of an achieved performance with pre-determined standards.
Comparison of one department of a concern with another
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The liquidity position of a firm would be satisfactory if it is able to meet its current obligations when they become due the liquidity ratios are particularly useful in credit analysis by banks and other supplier of short–term loans. Long-term solvency: Ratio analysis is equally useful for assessing the long term financial viability of the firm the long term solvency is measured by the leverage / capital structure and profitability ratios, which focus on earnings power and operating efficiency ratio analysis, reveals the strength and weakness of a firm in this respect.
Operating efficiency: It is relevant from the viewpoint of management and it throws light on the degree of efficiency in the management and utilization of its assets. The ultimate analysis depends upon the sales revenue generated by the use of its assets total as well as its components.
Overall profitability: In this the management is constantly concerned about the overall profitability of the enterprises. They are concerned about the ability of the firm to meet its short terms as well as long-term obligations to its creditors to ensure a reasonable return of its owners and secure optimum utilization of the assets of the
If I am the owner of a record label, I will annually discuss the metrics used to compensation and rewards with the employee and an representative from human resources while revised every quarter, which should be diverse within different divisions. The metrics should be based on what the divisions do and job results, and adjusted depending on absent, deficiency and how was it handled, merits and special achievements, and seniority. Divisions that specify on more routine works in order to keep the company running, such as legal, finance and H&R will be judged mainly on evaluation of performance, which should be done not only by their managers, but also by peer evaluation as well. The other divisions such as marketing, distribution and A&R
The total value of the firm has been calculated with the help of PV of cash flows and the continuing value and it shows an amount of
b) Profitability Profitability ratios are used in an effort to evaluate management’s ability to monitor and control expenses, and to earn a profit on resources committed to the business. These particular ratios assess a company’s strengths and weakness, operating results and growth potential. Moreover, they measure on the efficiency of assets being used to generate net income and sales. The higher the ratio, the more effectively a company is using their assets.
Gemini Electronics has become a successful electronics company that looks to be growing on an upward slope. We can see where Gemini is booming, as well as where they are lacking, by analyzing their Ratios and Statement of Cash Flow. Liquidity measures a firm’s ability to meet its cash obligations; shown by calculating the Current Ratio and the Quick Ratio. Gemini’s liquidity has slightly increased from 2008 to 2009, but remains below the industry average. An acceptable Current Ratio should be around 2:1, which Gemini has exceeded in 2008 (2.52:1) and 2009 (2.56:1).
Public companies may quite appropriately wish to focus investors’ attention on critical components of quarterly or annual financial results in order to provide a meaningful comparison to results for the same period of prior years or to emphasize the results of core
Capacity planning This is the process of knowing the production capacity an organization needs to meet the changing demands for the products. It helps to determine the quantity of the product needed by a firm to meet the demands of its customers. The capacity planning elements for Walmart are; facility, product and service, and human resource.
This ratio will help the company create the level of stock price regarding its sales and revenues and in considering expenses and liabilities. Since Walmart is on
also contributed to this change in public sector organizations and it is this environment that performance testing was consequently developed on. With Subramanian attesting the fact that performance testing which emerged in the same proxy as democracy has indeed led to a more representative system of bureaucracy, one that was far off from the earlier systems in which the members of the upper class of all European countries had filled most of the higher positions which coincided with poor performances in the civil service, the change to having persons chosen based on their ability to perform for the civil service as opposed to
For example, private or public administration’s undertaking on personnel budgeting. Further, the typical questions on the theme of execution of budget spending are regarding control stages (sensibility of financial information), exceptional procedures (misuse related), creative accounting. Moreover, on this subject, reconciliation of banking data, coverage difference, arrears, float, payment delay, consolidation of funds, bill management, and so on serve up to the mark. Controversies: Personnel
Strategic Quality and Systems Management Report Operations Management Operations management is now the most essential part in maintaining organizational systems. Actually operations management means all the necessary activities of an organization like finance, human resource management, research, marketing etc (Elnathan, 1995). Whether it is planning, leading, organizing or controlling, they all are part of an organization’s operations management. Because of the speedy change of the business environment, internal and external factors like market position, market value, possibility etc. (Stanton, 2001).
The paper will calculate the financial ratios of company that will be interpreted with the implications of ratios. Moreover, the paper will describe the indicators of fraudulent reporting. Discussion Purpose of Income Statement It is also called profit and loss statement or income or expense statement. The main purpose of income statement is to indicate managers and investors whether the organisation was cost-effective
To begin with, the company must channelize its investment in those projects that will assist the growth in the revenue figures and net income. It is also important for the company not take any additional debt and accept projects within their capital budget as the banks have already signaled red warning for unsustainable debt-equity position of the company. Analyzing the past performance of the company, we found that
TASK 1.1 Importance of operation management Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services. Because operations management is a management function, it involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services. Operations management is the central core function of every company. This is true regardless of the size of the company, the industry it is in, whether it is manufacturing or service, or is for-profit or not-for-profit.
AJINOMOTO (Malaysia) Berhad Part 1: COMPANY BACKGROUND According to Bloomberg, Ajinomoto (Malaysia) Berhad founded in 1961. It was the first Japanese companies that set up in Malaysia. It is acting as producer of Monosodium Glutamate. It produces and sells the monosodium glutamate.
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current assets. In the year 2012, KHB had a current ratio of 1.688 but it comes to decrease in 2013 to a 1.642. The ratio in the year 2014 was 1.670 indicating a slight increase. The competitor of KHB, the PMMB had a current ratio of 4.785, 4.012 and 3.622 from the year 2012 to 2014 respectively. A current ratio should be more than 2.0 as a higher current ratio indicates a more promising current debt payments.