According to Rama Gopal (2009), ratio analysis is an important and powerful technique or method, generally, used for analysis of Financial Statements. Ratios are used as a yardstick for evaluating the financial condition and performance of a firm. Analysis and interpretation of various accounting ratios gives a better understanding of financial condition and performance of the firm in a better manner than the perusal of financial statements. Brigham and Houston (2011) stated that ratios help us evaluate financial statements. Financial statements analysis involves careful selection of data from financial statements for the primary purpose of forecasting the financial health of the company.
Also, the company use accounting ratio analysis to learn more about a company 's current financial health as well as its potential. This research is to study the role of accounting ratios in decision making of a business. Decision making is the important element in management activity of all kinds of enterprise such as profit oriented, non-profit oriented and public institutions. However, this research is carried out in profit oriented enterprise where decisions are made based on different aspects which the use of accounting ratios should have a greater
Spend data management principles and solutions being applied to multiple business areas: The link between spend data management and sourcing and supplier management is obvious. However, accurate spend data is an equally critical to other business objectives, including compliance management, inventory management, budgeting and planning, and product development and management. Renewed focus in these areas is fueling additional interest in spend data management. 3. E-sourcing users view spend data management applications and services as key to next round of savings.
The process involves gathering relevant financial information, setting financial goals, scrutinizing your current financial position and coming up with an approach or plot for how you can encounter your goals given your current condition and future plans. Financial Planning provides direction and connotation to your financial decisions. It allows you to comprehend how each financial decision you make affects other areas of your finances. By observing each financial decision as part of the whole, you can consider its short and long-term effects on your financial goals. You can also adapt more easily to financial changes and feel more secure that your goals are on track.
(a) Analysis of financial statements is considered to be an effective tool for analyzing the operating and financial performance of an organization. The analysis of financial statements is useful for taking practical economic decisions by various users. There are different types of tools available for the analysis of the performance of an organization. However, the horizontal and vertical analysis is a very widely used technique for developing a better understanding of financial strengths and weakness of an organization. For the purpose of this assignment, as a Financial Analyst for Middle East Venture Capital LLC, I have chosen Oman Fisheries Co. S.A.O.G.
It is also useful for diagnosis of the financial health of an enterprise. This is done by evaluating liquidity, solvency, profitability, etc Such an evaluation enables management to assesses financial requirements and the capabilities of various business units. Ratios are helpful in business planning and forecasting. The trend ratios are analyzed and used as guide to future planning. What should be the course of action in the immediate future is decided, many a times, on the basis of trend ratios.
Using the index of the financial inclusion developed in levels of human development and financial inclusion in a country move closely with each other, although a few exceptions exist. Among socioeconomic factors, as expected, income is positively associated with the level of financial inclusion. Further physical and electronic connectivity and information availability, indicated by the road network, telephone and internet usage, also play a positive role in enhancing financial inclusion. Oya Pinar Ardic et al (2011) explained that using the financial access database by CGAP and the World Bank group, this paper counts the number of unbanked adults around the world, analyses the state of access to deposit and loan services as well as the extent of retail networks, and discusses the state of financial inclusion mandates around the world. The findings indicate that there is yet much to be done in the financial inclusion arena.
Accounting information is raw data concerning transactions that have been transformed into financial numbers that can be used by economic decision makers (Jones et al., 1996). Nwaigburu and mark (2014) also stated that accounting information is knowledge or news about a reckoning of financial matters. Accounting information is central to many different activities within and beyond an organization (Considine et al., 2010). Accounting information is essential to business operations. According to Williams et al.
Determining the variables that are relevant in the monetary transmission process is the hallmark to an effective monetary policy implementation. A clear knowledge of the monetary transmission channels helps in the accurate selection of intermediate target variables (such as monetary aggregates and interest rates). It also improves our understanding of the link between the financial sector and the real economic sector, thus enabling timely policy implementation. Based on this premise, this study intends to investigate the importance of bank lending in linking monetary policy to the real economy in the Malaysian case. The motivation to focus on bank lending as a channel for monetary policy transmission stems from the importance of bank lending
INTRODUCTION Financial planning enables businesses to use financial information both internal and external and other important market information to help determine the business strategy. It looks at the framing of financial policies that relate to investment, procurement, investment and management of funds of an organisation. (Brealey, Myer, & Marcus, 2000), define financial planning as a process assessing the financing and investment options available to a business entity and likely significance of this. It is an important process of an organisations performance management. It provides internal guidance in planning, and monitoring operations using income-statement and other value drivers; it provides key stakeholders with critical information to enable them to determine the financial performance of the company.