StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Communications Memo - Essay Example

Cite this document
Summary
VENTURA HOLDINGS MEMORANDUM TO: R.J. Falk DATE: 09 April 2011 FROM: J. Smith SUBJECT: BASIS FOR COMPARISON IN ANALYSISNG VENTURA FINANCIAL STATEMENTS AND FACTORS OF AFFECTING QUALITY EARNINGS Our efforts to establish the degree of performance of the organisation mainly depend on analyzing information obtained from the financial statements…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94% of users find it useful
Communications Memo
Read Text Preview

Extract of sample "Communications Memo"

VENTURA HOLDINGS MEMORANDUM R.J. Falk 09 April J. Smith BASIS FOR COMPARISON IN ANALYSISNG VENTURA FINANCIAL MENTS AND FACTORS OF AFFECTING QUALITY EARNINGS Our efforts to establish the degree of performance of the organisation mainly depend on analyzing information obtained from the financial statements. In a bid to improve the viability of the organisation, it is important for the management to have a basic overview of the bases of analyzing the company’s financial statements. I am convinced that we need to take a holistic approach in analyzing the company’s financial statements in order to be better positioned to make informed decisions to ensure that the company gains a competitive advantage and remains viable in the long run.

Basis for comparison of financial statements The main purpose for analyzing financial statements by the managers is to fulfill mainly three goals which include the following: to control the operations of the organisation, to assess the level of stability of the partners as well as to assess the way the company is viewed by the creditors as well as debtors. Essentially, the purpose of doing business is to achieve profit goals for the organisation. In order to establish if the organisation is achieving its goals, there is need to constantly analyse the financial statements.

The company also analyse financial statements to establish the quality of relationships with the business partners as well as to get an insight into how the company is viewed by the creditors and debtors. Horizontal and vertical analyses are used to analyse the company’s balance sheet. The horizontal analysis is mainly used to establish the value of the assets and changes in the financial statement over a period of time. On the other hand, vertical analysis of the financial statement is used to compare the total assets in the balance sheet and revenue generated.

The base for horizontal as well as vertical analysis of the balance sheet is the total current assets of the organisation. Income statements are also analysed to establish if the company is making profits or losses so as to be able to make informed decisions about turning around the fortunes of the company. A percentage change to the company’s total assets or net earnings can be established in both horizontal and vertical analysis of the financial statements. On the other hand, cash flows are analysed to establish the extent to which the company is operating a horizontal and vertical analysis can be used to establish any changes in the cash flow patterns.

Limitations to comparative analysis The main limitation of comparison of analysis of financial statements is that it must not be limited to numbers only. There are various other factors that affect the financial performance of the organisation hence the need to get as much information from other sources such as newspapers to get insight into the true position of the company in relation to its core business. Basing the financial analysis on figures such as changes in profit margins, total assets as well as cash flows may not be a true reflection of the company’s financial performance since there are other factors that also need to be considered.

The management should seriously consider the propositions made by the accounting department so as to ensure that the company complies with the set organisational goals. Factors that affect the company’s quality of earnings Operational costs mainly affect the quality of the company’s earnings. If bold measures to minimize the operational costs particularly in labour are taken while maintaining the core business values, there will be high chances of improved earnings by the company. If the wage bills increase, there will be a decline in the profit margins earned by the company.

On the other hand, if quality is improved while operational costs are maintained, there will be an increase in the net earnings by the company. It is my strong conviction that if the company is guided by the results of the periodical financial statements, it will be able to operate viably. Essentially, our main goal is to maintain the expected quality standards while achieving our aim to be profitable. Thus, compromising on quality will be disastrous to the operations of the company as a whole. J. Smith (Accounting manager)

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Communications Memo Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1415539-communications-memo
(Communications Memo Essay Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/environmental-studies/1415539-communications-memo.
“Communications Memo Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/environmental-studies/1415539-communications-memo.
  • Cited: 0 times

CHECK THESE SAMPLES OF Communications Memo

PR Communication Memo

PR Communication memo [University] [Instructor Name] PR Communication memo Press Release California – August 25, 2011 – The Board of Directors announced today that the Chief Financial Officer of the company has resigned.... PR Communication memo PR Communication memo Press Release California – August 25, – The Board of Directors announced today that the Chief Financial Officer of the company has resigned.... Internal memo TO: The Manager FROM: Assistant Manager DATE: August 25, 2011 SUBJECT: Resignation of the CFO The Chief Financial Officer of the company has resigned and there are some obligations that are required to be met by the company in such scenario....
3 Pages (750 words) Essay

Influencing Individuals and Groups

Written communications that Inform and Influence: The Results-Driven Manager Series (Paperback).... Sometimes as a sabotage ploy, deliberate efforts are made to encourage the increase of problems in order to create frustration and conflicts.... Verbal communication… Communication that is not articulated efficiently and effectively can actually set the organization back, rather than take it forward, as it is intended to. This Negotiation is then sought, to amicably discuss and assess the situation and to find solutions to the problems incurred....
3 Pages (750 words) Essay

Management communication - memo

2006). Page Design 2: It Management Communication - memo Management Communication – memo Memorandum Re: Page Design It is within the intra-level of design because of one type of font.... It is an inter-level choice because of one heading and use of white space to highlight points....
1 Pages (250 words) Assignment

New Employees to Teammates

I am sure that your competence and skills make you perfectly fit for undertaking the role and responsibilities required for the job.... As the outgoing manager who… ad been in the position for five years, I hope you would take my professional advice as positive inputs which would assist you in starting administration and governance of the department....
5 Pages (1250 words) Assignment

Professional communication memo assignment

Therefore, this gives all staff members a chance to boost their competence in Professional communication memo assignment DREAM COME TRUE VACATIONS MEMORANDUM March 01, All staff members Scheneider Ramon, Manager S.... Following a presentation evening by our company in conjunction with the Mexican Tourist Bureau, I wish to invite all staff members to this informative event....
1 Pages (250 words) Assignment

Memo to the Building Manager

memo to the Building Manager The Regional Manager of Rite properties The Building manager of The Plaza Date: 16th October, 2014 Re: Revisions for initial memo I have noted with much concern the problems that you have communicated with the residents at the Plaza.... You overlooked several components on the process of creating the memo.... Among them is the basic formatting structure of the memo.... Therefore, when writing a memo or any other official document, it is necessary to include a well-written subject....
2 Pages (500 words) Essay

ASSIGNMENT #1 - Request for Funding Memo

The course is to cost $2000 in total living out the registration fee which Business: Request for Funding memo Peter Stalk, Supervisor ACFC Brian Johns, Team Leader RE: Request for Sponsorship ina Business Writing Course Date: 15th September, 2014Subject: Funding memo; Business Writing CourseAs a young employee of ACFC under the department of HR, I am requesting the company to sponsor me for a Business writing course.... Handbook for memo writing....
2 Pages (500 words) Assignment

Review Assignment Reimbursement Memo

However, after careful analysis of the material I managed to identify the mistakes that I had done in the memo.... However, I have corrected the Reflection memo The document here will indicate the mistakes that I made in my previous work.... However, after careful analysis of the material I managed to identify the mistakes that I had done in the memo.... Moreover, my sentences were not correctly connected to thus making it hard for the reader to find the intended meaning of the memo....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us