Company managers, investors and government regulators utilize various metrics and ratios to analyze company financial statements such as income statements and balance sheets so as to determine the fiscal viability of the organization in the short and long term. This paper will examine some of the ratios and metrics utilized by various stakeholders to appraise different financial statements, examining how various stakeholders can successfully employ the metrics and ratios in their decision making. The examination of balance sheets entails the use of financial ratios as the primary metrics. These ratios include the quick ratio, leverage or debt-to-worth ration and current ratio. The current ratio, which is also referred to as the liquidity ratio, measures the liquidity or solvency of an entity (Higgins, 2009). This metric offers investors a measure of the business’ capacity to pay its current liabilities using its current assets. Investors typically use this information to decide whether or not to invest in a business. A high current ratio means the company has vast capabilities to pay its short-term debts using short-term cash. Investors and company managers seek a current ratio that is above 1.0 since this indicates a company’s competence to repay all its current liabilities. Secondly, quick ratio is also a measure of liquidity, which eliminates certain minimally liquid assets from the current ratio equation. Company managers, government regulators and investors utilize quick ratio to analyze a company’s financial strength (Shapiro & Balbirer, 2000). Company managers, investors and business managers use this information to determine a company’s overall capacity to repay its current liabilities, which influences its long term viability. On the other hand, the leverage ratio or debt-to-equity or debt-to-worth ratio provides investors a viable signal of a business’ leverage. When this ratio is high, it means a company’s assets exceed its stock equity, which indicates that the company has more debt than equity. Leverage ratios of 2:1 or lower mean that liabilities are double the amount of shareholder’s equity. Ratios above 2:1 indicate that a business may be unable to pay its creditors or acquire supplementary long-term funding (Higgins, 2009). Government regulators use leverage ratios to determine whether or not companies can legally file for bankruptcy. Investors use the ratios for control purposes such as deciding either to invest or pull out their investments in a company (Harrington, 2003). The ratios allow current and prospective investors to examine how managers acquire and make use of company resources in their control, thereby influencing investment decisions with a view to deterring the incidence of financial loss. Through the ratios, company managers gain knowledge of the successfulness of the business’ past and present strategies and how to enhance their future viability. Ratios also enable managers to highlight and exact deviations from optimal performance levels thus allowing organizations to steer their decision making and processes towards the attainment of such optimal performance. Various stakeholders use different ratios and metrics to analyze income statements. For instance, earnings per share ratios tell government analysts and investors the amount of money available to shareholders
Business Financial Metrics Name: Institution: Business Financial Metrics Financial statements or reports are fundamentally formal reports, which spell out business financial activities. For business entities, all significant financial information is submitted through a structured manner and an effortlessly intelligible format through financial statements…
72), they should have the power to open calls again where the resolution data is not enough or unsuitable and pursue this up with the concerned representatives (Czegel, 1998-ii, p. 90). The main objective of Incident Management is to develop the value of service given to the IT clientele.
True shareholder value is the most desired position of a firm’s equity and debt to the real replacement value of its assets. According to Copeland, et al (1990), “the most significant factor is that the rate of return on invested capital relative to the weighted average cost of capital and the amount the company invests in new capital at this rate to generate growth” (Armitage & Ha, 1995, p.2).
“Marketing may once have been regarded as more an art than a science. Executives may once have cheerfully admitted that they knew they wasted half the money they spent on advertising, but they didn’t know which half. Those days, however, are gone.” (Farris et al., 2006).
Profitable Cruise ship marketing includes global marketing strategies. 1. Cruise Ship Industry Reports. The cruise ship industry continuously generates an increasing trend. The same trend is considered a mainstream instead of a niche holiday. The trend shows that the ships are the destination goals of many of the cruise ship clients within the United Kingdom market segment.
According to the report the market metric involves comparison of marketing programs of firms and identifying areas that need improvements. Marketing strategies are identified and assessed against the profitability attributed to them among selected companies within the same industry to enhance reliability of this measurement.
The different concepts in business on returns, profits and shareholder investments such as returns on assets and equity will be examined. After an introduction on what financial returns and profitability would mean to shareholders, the different factors that affect profitability and contribute to maximizing shareholder wealth, the examples and evidence of shareholders returns and company policies and strategies will be analyzed.
Also, periodic human resource assessment using metrics and measurements can identify the key aspects of human resource management that require improvement (Strategy2Act). Besides, metrics and measurements can help in the calculation of investment return of human resource (Strategy2Act).
It has its presence in several countries across the globe including, Americas, Central Asia, Africa and Europe. The Barclaycard UK, operates in tandem with other parts of the flagship company Barclays including UK retail banking,
Ratio analysis is a great a analytical tool because it provides a good basis for comparison, while at the same time providing numbers that analyze different facets of a business. The first step in the financial analysis