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.
Nobody downloaded yet

Finance for mangers - Essay Example

Comments (0) Cite this document
The purpose of which is to evaluate the performance of the companies as well as understand the levers of management control implemented in each company. The primary goal in…
Download paper
Finance for mangers
Read TextPreview

Extract of sample
Finance for mangers

A company exists for the benefit of its shareholders. Its objective is not to educate the public about its financial condition, but to maximise its shareholders’ wealth. Reporting financial results in a transparent and straightforward fashion is a means to an end (Fridson & Alvarez, 2002). The financial performance of a company can be discerned by the different financial ratios in accounting that tries to evaluate the overall financial condition of a company.
The different financial ratios can be categorised into liquidity ratios, activity ratios, debt ratios and profitability ratios. Liquidity ratios measure the company’s availability of cash to pay its obligations and debts. Activity ratios measure the ability of the company to convert non-cash assets into cash. Debt ratios measure the company’s capability to repay long term obligations. Profitability ratios measures how the company controls its expenses and uses its assets in order to generate an acceptable rate of return.
Based on the financial statements and financial ratios calculated, Tesco is more liquid than Sainsbury and Morrison. The liquidity of the company is measured by the current assets ratio as well as the acid test ratio. An asset is liquid if can be readily converted to cash, while a liability is liquid if it must be repaid in the near future. The current assets ratio compares the assets that will turn into cash within the year to the liabilities that must be paid within the year. The acid test ratio is a more conservative liquidity measure where the numerator of the current ratio is reduced by the value of its inventory. (Higgins, 1995)
The trends of Tesco’s liquidity ratios are increasing from 2007 to 2009. This means that the company has better capability to pay its debts in the 2009 than the other two companies. It is also noteworthy to show that Sainsbury is experiencing some liquidity problems because its current ratio and acid test ratio are decreasing in ... Read More
Cite this document
  • APA
  • MLA
(“Finance for mangers Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/392394-finance-for-mangers
(Finance for Mangers Essay Example | Topics and Well Written Essays - 2000 Words)
“Finance for Mangers Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.net/miscellaneous/392394-finance-for-mangers.
  • Cited: 0 times
Comments (0)
Click to create a comment
Principles of Finance
It denotes the combination of equity and debt finance utilised by a corporate entity to finance its assets. While some companies are unlevered, others can be financed partially thorough equity and partially through debt. The determination of the ratio between equity and debt finance is known as the financing decision.
8 Pages(2000 words)Essay
Principles of finance
“In a world with corporate taxes, Modigliani and Miller’s view is that a company should issue as much debt as possible. Why is this advice not followed by companies?”A debt is often an obligation owed by a debtor to a creditor, who is usually the second party.
6 Pages(1500 words)Essay
Finaince for mangers
Each division is managed by a divisional managing director, enjoying a considerable autonomy in most of the operational and financial decisions. In order to critically evaluate the current financial position, each division is separately evaluated. In addition, the comments in the audit management letter are also taken into account as they serve the purpose of impartial analysis of the divisions’ performance.
20 Pages(5000 words)Essay
Advance corporate finance
Advance Corporate Finance Table of Content Introduction 3 Organizational Structure 3 Corporate Governance 5 Previous Merger and Acquisition of Crown Limited 7 Reference 8 Introduction This paper represents organizational structure and corporate governance of Crown Limited, a famous international entertainment company and one of the largest entertainment groups in Australia.
3 Pages(750 words)Essay
Business Finance
In their arguments, the critics have it that firm managers are mostly interested in other factors rather than attaining profits for the firm. Managers have been observed to have their interests in prestige, power, employee welfare, leisure, the larger society welfare and community well being.
12 Pages(3000 words)Essay
Budget Process (finance)
It is claimed that budgetary control has almost become a necessary tool for the management to control the costs and enhance profitability. But the changing time is so competitive in business and other activities that many times changes in activities occur so fast that relevance of budgets and budgetary control look useless, as with frequent changes the budgetary prediction often look unreal.
4 Pages(1000 words)Essay
Advance corporate finance
It was the gaming division and assets as Crown Limited. Rest asset of PBL was renamed as Consolidated Media Holding. Core business of Crown Limited is in gaming and entertainment sector. It wholly owns two famous Australia’s leading entertainment
3 Pages(750 words)Essay
Corporate finance
act with the underwriter and the underwriter takes in all the responsibilities leading to IPO including proper valuations of the shares, to selling it through proper channels in exchange of fees. But sometimes the investment banker indulges in what can be called spinning of
12 Pages(3000 words)Essay
Management Finance
Currently, Berry Ltd is using the traditional absorption costing system in which the organization uses single allocation base (machine hours). However, this mechanism has failed to generate accurate costing information relating to the products. Based on this premise,
9 Pages(2250 words)Essay
Developing a training program for middle-mangers
The training program may be set up in the form of training sessions or modules. For example, module 1 may deal with developing personal leadership. The manager requires some particular skills
2 Pages(500 words)Essay
Let us find you another Essay on topic Finance for mangers for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us