Financial Information for Managers Ref/Def assignment

High school
Coursework
Finance & Accounting
Pages 3 (753 words)
Download 0
In the business world it is important to be able to evaluate the financial performance of company.Managers and other stakeholders such as suppliers and lenders depend on financial information in order to made decisions. …

Introduction

In the business world it is important to be able to evaluate the financial performance of company. Managers and other stakeholders such as suppliers and lenders depend on financial information in order to made decisions. The four basic financial statements are the income statement, the balance sheet, the statement of retained earnings, and the statement of cash flow (Weygandt & Kieso & Kimmel, 2002). These statements are published in the annual reports of public corporations. The data contained in the financial statements can be utilized by financial analyst to make financial analysis such as vertical, horizontal, and ratio analysis (Besley & Brigham, 2000). The financial technique that will be analyzed and discussed in this paper is ratio analysis. Ratio analysis can be utilized to analyzed different aspect of the financial performance of an enterprise. There are different categories of ratio analysis. The five ratio analysis categories are liquidity, financial leverage, asset efficiency, profitability, and market value ratios (Peavler, 2011). Financial ratio analysis is a very effective tool because it can be applied to firms of any size including small, medium, and large firms. The functionality of ratio analysis depends on the proper appliance of the generally accepted accounting principles (GAAP) by the accountants of public and private firms. The financial ratios assess how well a company is doing from the standpoint of the stockholders of the firm (Garrison & Noreen, 2003). ...
Download paper
Not exactly what you need?

Related papers

Essay on Financial Information
The managerial staff of a company is the stakeholder group that uses financial statements the most in their decision making process. Performing research regarding financial information can be very useful. Historical financial information can be used to determine patterns concerning the performance of a business enterprise. An accountant or manager can use historical data such as the sales numbers…
Analysing Financial Information
External reporting of accounts through various financial statements is regulated and must comply with various legal requirements as well. Accounts must be regulated in order to provide a true and fair view of the affairs of any business concern. Compliance being the most important issue, every financial accounts prepared by any domestic company in UK must comply with the Company Act. Regulation of…
Financial Information: Coursework Assignment
The company has also recently initiated its telecom and data manager and distributions business lines (Bloomberg 2012). The company sells its products and services through its physical stores and also online ecommerce solutions to its millions of customers worldwide. The company operates for achieving its visions that is “to create value for customers to earn their lifetime loyalty” (Tesco…
Financial Resources Management Assignment
Assumptions There is an already decorated room that will save the department on the cost of building and decorating. The university has the required resources to fund the project comfortably. Plans Investing in this project will cost the university in the short term, but the benefits will come in the long term use of the room. This can be seen when the students begin to make full use of the…
Financial Reporting Assignment
The involvement of the all stakeholders, the identification of the economic status, financial identification and effective transmission of the components of the financial reports outlines the main characteristics of effective and good quality financial reports (Helen and Gary 2001, P. 57). Although conventional financial statement systems are still effective in providing financial reports in an…
The assignment - Background information - You are the financial director of a large, ficticious company called Manac plc, which
The target profit of the company is not being achieved and as a result of that it is impacting the entire organization. The company has also adopted several cost cutting methods, which impacted the production and reduced competitive advantage of the firm. The report will mainly focus on three areas of strategic management accounting. In the first part, it will mainly emphasize on the models and…
Financial Analysis for Managers
However, the highly competitive nature of today’s corporate world has given rise to an essence of unethical behaviour which underlies a majority of business operations; in order to ensure their success. Many a times, unethical behaviour in the workplace has an immense negative impact on the organization and its employees. These effects can be psychological, financial, social, or even…