(1) Ratio analysis is a very accurate and reliable tool when it comes to analyzing the financial outlook of an entity. The primary reason to conduct a ratio analysis is to quantify the results of the operations of a company and compare them with that of the prior year(s) in order to assess different aspects of the financial feasibility…
It is of great significance that the ratios must be benchmarked against a standard in order for them to possess a meaning. Keeping that into account, the comparison is usually conducted between companies portraying same business and financial risks, between industries and between different time periods of the same company. The financial performance of the company over the last five years has been conducted in order to draw attention to various financial trends and significant changes over the period. The analysis is divided into three main categorize namely Profitability, Liquidity and Gearing. Profitability ratios identify how efficiently and effectively the company is utilizing its resources and how successful it has been in generating a desired rate of return for its shareholders and investors. Liquidity ratios measure the ability of the company to quickly convert its asset into liquid cash to settle its short term liabilities. Whereas, the Gearing ratios identifies the extent to which the company is financed through debt and to what degree the operations are being conducted from the finance raised through raising equity capital or otherwise. The profitability analysis of an entity is crucial as it shows how well a company is managing its resources in order to generate enough return for the shareholders and enhancing the market worth of the company. Three major ratios in this category is used namely ‘Return on capital employed’ Gross profit margin’ and ‘Net profit margin’. (2) The board of directors of the company needs to decide whether the funding should be equity based or debt based. Both modes of financing i.e. equity and debt have their own advantages and disadvantages. There are several factors which need to be considered before taking such decisions. For example statutory rules and requirements, terms and conditions imposed by the counter party and general economic conditions are analyzed before selecting one of the options. One of the major drawbacks of raising finance equity through issuance of equity is the fact that a lot of secretarial procedure is involved in raising such finance in contrast to acquiring financing directly from any bank. [Abeysinghe, R. L., 2007] Most of the time, financing from any bank or financial institution is acquired by just filing an application with the bank or financial institution. The banks usually have their own procedure of screening where they evaluate the credit history, financial outlook, liquidity and other aspects of the company. Most importantly, the bank’s analyze the fact and ability of the company pertaining to the ability of the company to repay the amount of loan in the future. When it comes to raising finances through issuance of equity shares, the company is liable to fulfill several requirements such as making sure that a certain number of shares are issued in accordance with the listing regulations of the stock exchange, submitting a due diligence report to the share holder and issuing share to the current shareholder in accordance with their current share holding. [Saching.com (2010)] These statutory rules and requirements are implemented by the authorities responsible in order to safeguard the interest of the organization and general public, ...
Cite this document
(“Assignment: Understanding the Concepts Research Paper”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/86011-assignment-understanding-the-concepts
(Assignment: Understanding the Concepts Research Paper)
“Assignment: Understanding the Concepts Research Paper”, n.d. https://studentshare.net/finance-accounting/86011-assignment-understanding-the-concepts.
Measurement is the process of differentiating persons or things through testing, interviewing, observation, or other methods, and results in ratings, assignment of numbers, labels to persons, or measuring things (Goodwin & Goodwin, 1996). Data obtained from measurement are classified by using numbers at different different precision or levels; the four levels in precise ascending order are: The nominal, ordinal, interval and ratio.
In their work, Pathologies of rational choice theory, Green and Shapiro have argued that the rational choice theory has limited empirical outputs. They contend that applicable literature with respect to political science was one with weak statistical methods.
The HR strategies should also make provisions of how to integrate their operations activities in the effort of aligning the operations with the new strategic plans and objectives. The activities carried out by the workers in any sort of situation should be able to meet the intended goals of the company.
In an effort to understand the grim situation and create an appropriate plan, it is fundamental to draw associations between TAKS and TEKS since they focus on attaining superior skills. Subject, grade levels, and objectives that are in need of Improvement It is clear that most students at Crocket State School performed poorly in the Mathematics subject as highlighted by the TAKS Test shows.
Microeconomic principles on the other hand would include demand and supply prices of a particular family allocating their financial resources for an apartment, and the wages that each family would pay to their home decorators to set up their homes. These concepts can be understood as microeconomic because they study the behavior of a small number of individuals using limited resources as opposed to the entire market.
Scenario 1. Joanie will be able to identify the specific areas where her students have difficulties by setting an exam. This exam will present questions from different areas of the subjects so that the teacher will be able to identify those specific areas (Mariotti, 2009).
Change leaders should have a deep understanding of the company’s capacity for transformation in terms of resources and overall preparedness. If the organization lacks the appropriate features that show readiness and capability for change, challenging issues must be tackled before the change program is set on track.
In general, a computer is an instrument that can obtain and stock facts and convert or process it while evidence is the information that is conversed. On the other hand, data is the representation of knowledge in a dignified way appropriate for communication, clarification and processing largely by a computer method.
The purchases and sales of the prices occurred between August 20, 2012 and October 5, 2012. Based on the above graph, it is clear that investment was made on both small and large firms. The rationale of investing in small and large firms is the risk