Financial Analysis for Managers DQ4 - Essay Example

Only on StudentShare

Extract of sample
Financial Analysis for Managers DQ4

In organizations, for the investors' interest, abundance in the company's working capital depicts a positive sign in making financial amendments and integrations internally and also in the market to compete other companies.
After globalization, a number of companies are comparing their positions in the market by considering their past and current records and predicting their futures associated with liquidity and solvency of firm's assets (Bernstein et al, 1997).
Today the policy makers, especially the governments, deeply observe the trends in variations of the working capital of organizations to impose rules and regulations on them. Even the investment decisions from giant companies are also based on the extent of working capital that a company possesses.
Inventories act as the important assets for various businesses and they also influence the revenue generation of different companies. Inventory costs are essential to determine because it affects the income and asset levels.
The net income of an organization is dependent on the inventory costs, except for the service organizations, as the net income is directly linked with the costs of goods sold. Inventory costs can be categorized in two ways. ...
Download paper


Working capital plays a vital role in accomplishing the necessary obligations of a firm. It is also important in providing a safer side for the creditors of a company. The essential purpose of the working capital is to control and look after the firm's cash inflows and outflows…
Author : geovannysporer

Related Essays

Financial Analysis for Managers II
It is a fixed amount paid on annual basis (Myers & Allen, 2005). This amount might be constant for a certain period of time or may have a steady trend for some time and may fluctuate otherwise. The annuities and the time value of money are related and affected by certain factors. These are as follows;...
4 pages (1004 words) Essay
Financial Analysis for Managers
Wal-Mart registers nearly $20,000 profit every minute of every day. Last fiscal year, Wal-Mart recorded profits of $10.3 billion. For comparison, Target's profit per minute is $6,084. To say Wal-Mart is a money-making machine would be an understatement....
9 pages (2259 words) Case Study
Financial Analysis for Managers Essay
The WACC takes into consideration the relative weights of each element of the capital structure and presents the predicted cost of new capital for an organization. In this way the WACC is important for any firm or organization operating as it not only helps them identify the minimum returns they need to earn but also helps them maintain a constant stock price. The WACC also provides greater accuracy and stabilizes fluctuations (Robert Libby, Patricia Libby, 2005). The WACC is also an important decision variable in investment appraisal and capital budgeting. Every company or firm wants to...
3 pages (753 words) Essay
Financial Analysis for Managers College Essay
Thus, companies often pay dividends in order to attract potential investors, retain current ones who are more sensitive to cash inflows from investment, and indicate their strong financial muscle. In various studies, it has been apparent that declaration and payment of dividends bid up the price of the company's stock making the payment. Payment of dividends which is coupled by capital gains truly maximize the wealth of stockholders....
3 pages (753 words) Essay
But, soft skills such as communication skill, social skill, and human relations skill are equally, perhaps more, important in the modern climate. Globalization has compounded the need for managers to be more alert and adaptable as they have to work in an environment totally different from their past experience. Communication, leadership, teamwork, hard work, negotiability, adaptability etc are some of the common attributes that present-day managers should possess....
3 pages (753 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!