Wednesday, December 18, 2019

Paper Ratio and Financial Statement Analysis - 2682 Words

Benefits and Limitations of Ratio and Financial Statement Analysis July 25, 2013 MGMT640 Executive Summary In corporate finance, both ratio and financial statement analysis are important tools that can be used in order to assess a company’s strength financially. They can be used in order to forecast a business’ prospective cash flow and ability to grow in the future, as well as a company’s strengths and weaknesses. Income statements, balance sheets, the statement of retained earnings, and the statement of cash flows are the four primary types of financial statements used in corporate finance. All of these financial statements serve to analyze a firm’s†¦show more content†¦For a firm, such as Microsoft, its revenue would come from products such as the computers, phones, tablets, and software it sells to consumers. On the other hand, for a consulting firm, such as Accenture, revenues would stem from the fees it charges for its consulting services contracts with various government agencies around the world. Both companies are providing a product to a cons umer, one simply happens to be a tangible product that people buy, while the other is a service product that agencies need for their functionality. Expenses are the costs a firm incurs while generating its revenues (Parrino, 2011). For Microsoft, expenses would stem from the costs of building its products, marketing them, developing new products, shipping them around the world, etc. For Accenture, expenses would stem from the cost of all of its consultants, which includes their wages, insurance, company laptops it provides to each of them, travel costs for sending consultants around the world on projects, etc. Again both types of firms exhibit expenses; some of them are just different. Net income shows the company’s revenue relative to its expenses. If revenues exceeds expenses then the company has a net profit and is â€Å"in the black† for that time period (Parrino, 2011). On the other hand, if expenses exceed revenues then the company has a net loss and is â€Å"in the red† for that time period (Parrino, 2011). By looking at financialShow MoreRelatedRatio and Financial Ratio Analyisis1712 Words   |  7 PagesRatio and Financial Statements Analysis Kimberly Y. Gruber University of Maryland University College Dr. Sunando Sengupta 07/25/2013 Turnitin Score: 23% Executive Summary The purpose of this paper is to examine ratio and financial statement analysis. Such analysis is a useful tool for managers and stakeholders to evaluate a company’s financial health in order to identify opportunities for growth and areas of weakness so as to institute corrective measures.   Financial statements are usedRead MoreFinancial Statements: Industry Comparison1557 Words   |  7 PagesFinancial Statements: Industry Comparison University of Phoenix BSA 500: Business Systems I Instructor: May 28, 2007 Financial Statements: Industry Comparison More often managers are exposed to financial data and the need exists to develop knowledge and understanding of financial accounting concepts and principals. Nearly all companies prepare financial statements of some type and the complexity of those statements will vary. The analysis and interpretations of financial statementsRead MoreEvaluating The Performance Of A Company1124 Words   |  5 Pagesand review of financial information and statements. Financial statement analysis is a method of reviewing and analyzing a company’s or organizations financial statements such as their balance sheets, income statements, and statement of cash flows. Financial statement analysis helps companies gain an understanding of the financial position of the company, results of their operation, and cash flow of their company, which is also the main purpose of financial statements. In this paper, I will discussRead MoreFinancial Performance Review and Objective1405 Words   |  6 Pages A STUDY ON FINANCIAL PERFORMANCE OF MATHRUBHUMI PRINTIONG amp; PUBLISHING COMPANY LIMITED, CALICUT COMPANY PROFILE Mathrubhumi  is one of the front-runners among the Malayalam newspapers. The first copy of Mathrubhumi  was published on 18th of March 1923K. P. Kesava Menon, the prominent freedom fighter, as Editor and K. Madhavan Nair as Managing Director of it.In the beginning, the paper was published a week and had just one edition from Kozhikode (Calicut).Now with fourteen editions, includingRead MoreFinancial Performance Review and Objective1419 Words   |  6 Pages A STUDY ON FINANCIAL PERFORMANCE OF MATHRUBHUMI PRINTIONG amp; PUBLISHING COMPANY LIMITED, CALICUT COMPANY PROFILE Mathrubhumi  is one of the front-runners among the Malayalam newspapers. The first copy of Mathrubhumi  was published on 18th of March 1923K. P. Kesava Menon, the prominent freedom fighter, as Editor and K. Madhavan Nair as Managing Director of it.In the beginning, the paper was published a week and had just one edition from Kozhikode (Calicut).Now with fourteen editions, includingRead MoreFinancial Trend Analysis Of Tata Steel Ltd Essay1257 Words   |  6 Pages TERM PAPER ON â€Å"Financial Trend Analysis Of TATA STEEL Ltd.† BY SAMIKSH SHARMA {A3146915005} B.Com (H) – Evening Class of 2015-18 Under the Supervision of: Dr . ATUL KUMAR In Partial Fulfilment of the Requirements for the Degree of Bachelor of Commerce (Honours) At AMITY COLLEGE OF COMMERCE AND FINANCE AMITY UNIVERSITY UTTAR PRADESH, 2015-18 INDEX S.NO CONTENTS PAGE NO 1. TITLE PAGE 01 2. INDEX 02 3. DECLARATION FORM 03 4. ACKNOWLEDGEMENT 04 5. EXECUTIVE SUMMARY 05 - 06 6. INTRODUCTIONRead MoreFinancial Statement Analysis Paper1170 Words   |  5 PagesRunning head: FINANCIAL STATEMENT ANALYSIS PAPER Financial Statement Analysis Paper Principles of Accounting ACC/300 Mr. John Opincar June 24, 2009 Abstract Landry’s has become a successful company over the years because the customers enjoy the specialty items that they serve on their menu. It has become a company that we enjoy taking our families out to dinner, celebrating birthday parties and certain special events. However, this paper will complete the financial analysis for the reportedRead MoreChuck E Cheeses1681 Words   |  7 PagesAmerica This paper was prepared for Financial Decision Making, MBU 652, Summer 2011, taught by Professor Howard S. Steed, PhD Abstract In this analysis paper I choose to learn about Chuck E. Cheeses. I demonstrate my understanding of the categories of Financial Statement Analysis, which includes – profitability, liquidity, activity and debt (leverage). Our class was assigned a company for financial scrutiny and to obtain financial statements (Balance Sheet, Income Statement, and Cash FlowRead MoreMethod Analysis Essay942 Words   |  4 PagesIn a 2 to 3 page paper, evaluate the three methods of analysis: horizontal, vertical, and ratio as explained in Chapter 9 of your textbook. Summarize each method, and discuss how the financial information is used to make a particular decision. Provide a scenario in a health care situation in which a given method of analysis might be used. Horizontal: Horizontal analysis, also called trend analysis, refers to studying the behavior of indi- vidual financial statement items over several accountingRead MoreThe Financial Status Of A Company1548 Words   |  7 PagesThe financial status of a company is a high priority for internal personal such as managers and external personal such as stockholders. The reason being that by developing financial statements and ratio analysis it allows all users to see the current and future status of a company’s financial state. Financial statements are beneficial, but have certain limitations that may cause issues, if unknown, when the company or individuals use them. This paper will discuss the benefits of ratio analysis and

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