...Angie Servellon HSC 405 Professor Joseph Shin These paper we have to discuss the simulation paper in which we analyze the financial indicators to make a decision. In this simulation the financial accounting from Elijah Heart Center a Cardiac Care hospital having a working capital shortage ("Analyzing Financial Indicators for Decision," n.d.) and have taken a preventative evaluation on how the funding option should be used when it comes to acquiring medical equipment, and the possibility of financing expansions. In the first step of phase one simulation, I decided on what I thought was best when it came to cost cutting option to choose to solve the cash flow within the hospital. Besides selecting a loan option that would help cover any capital shortage that can occur if I don’t choose wisely. After I had made my choice, I was also aware, I needed to explain why I had chosen my option and what was the outcome. I decide to go with the best cost cutting by cutting “Reducing Proportion oaf the Agency Contracted Staff” and “Changing the Skill Mix” ("Analyzing Financial Indicators for Decision," n.d.). I chose these two choices because in the Revenue and Expenditure projection showed that the costs would help the prices go down by a significant amount without acquiring any major changes in taxes. Also, Saika Takeuchi, the vice president recommended choosing two of varies categories that would help cut the cost in a major way. Also, it would make revenues increase if the hospital...
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...price almost doubled. However in year 14 the company realized that there have been some issues with the financial statements already published and those under publication. After analyzing the financial statements of the company we have summarized some of the key evidences which indicate the cash flow problems: One of the most important factors indicating the liquidity position of any organization is by analyzing the change in current ratio and quick ratio over a period of time. From the chart below we can see that the liquidity position of the company has declined significantly over a period of time. We believe year 13 was a big indicator when the management should have analyzed the operations as there is huge decline in the liquidity position. The second most important indicator to analyze the performance of any company is to compute the operating results of the company. Some of the key indicators of operating performance is gross margin, operating margin and net income margin. An analysis of trend in all the three will help summarize the performance of the company. From the above chart we can see that all the operating matrix have shown a declining trend. The situation started getting worse from year 13 onwards. The management should have taken adequate steps to revive operations when the financial conditions started getting worse in year 13. On analyzing the cash flow statement of the company we can see that there has been significant increase in cash flows...
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...Firstname Lastname Instructor’s Name Course Number 21 July 2012 Investment Management Investment Fundamentals Investment is the process of employing saved money in financial institutions with the hope of gaining returns in the future. Investment management is the process of managing the money employed in financial institutions with the hope of gaining positive returns. The financial institutions are catalogued in a case known as an investment portfolio. An individual with saved money may opt to invest it in financial institutions as a way of adding value to the money. Investing for individuals involves identifying the sources of income for investment such as savings and loans from others. The individual then comes up with investment objectives that will guide his investment decisions. After the funds have been secured, the investor does a market analysis to determine which the best investment opportunities available are for him. A market analysis may be done through a “bottom top” approach or a “top bottom” approach. The “top bottom approach” starts from a macroeconomic level of the market and works downwards towards the different service sectors and industries, finishing with the specific corporate institutions and their portfolio. Once at the corporate level, the investor can decide which investments will afford better returns in the long run (Klammer 36). A competitive analysis is done by the potential investor to determine how his options stand against the other investors...
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...Operations Decision Students Name ECO 550 Managerial Economics & Globali Professor: NAME Date: 19-July-2012 Operations Decision This paper will describe the details of a fictitious business and will assess the current environmental scan factors while determining the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. Thirdly, this paper will evaluate the financial performance of the company using the information provided in the scenario; consider all key drivers of performance, such as company profit or loss for both the short term and long term. Also, it will recommend how the company can improve its profitability and develop a brief plan to implement the recommendations. Lastly, this paper will assess the circumstances in which the company should discontinue operations while providing a rationale with its reasoning’s. Describe the details of the fictitious business that is created for this assignment Edmonds Equipment Inc (EEI) headquartered in Richmond, Virginia is a leading provider of consumer, business-to-business, and industrial digital imaging solutions. Edmonds products include: cameras, binoculars, camcorders, printers, scanners, calculators, facsimile machines, office software, and projectors. EEI currently employs 150 workers and has hired a consultant to offer some advice that will help it make a decision as to whether it should...
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...Financial Resources Business financial resources that may indicate strength during your SWOT analysis include financial resources derived from sales activities, income from investors and the value of company infrastructure. Strong financial performance will enable a company to take advantage future opportunities. When an organization's financial indicators show weakness, the organization must assess which actions to take to improve its financial performance. Market Research When you are conducting a SWOT analysis, effective market research will show all the opportunities that are available to your company or organization. If your company is in a strong position, your analysis will help you decide the best approach for taking advantage of business opportunities. If your company is not presently positioned to take advantage of future opportunities, the SWOT analysis will help you decide which actions will strengthen your company's position. According to the University of Missouri Extension, "marketing touches every aspect of your business' operation." Related Reading: SWOT Analysis for Breakfast Cereal Performance Indicators Performance indicators provide the information that managers need to understand how the organization is performing in relation to its strategic goals and strategic objectives. In a SWOT analysis, performance indicators help a company determine how it can improve business operations, and determine how they can capitalize on strengths. Performance indicators...
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...An Organizational Perspective of HCL Technologies Michael Franklin MBA – 6241 16 September 2012 Abstract This organizational perspective paper provides an overview of outsourcing, how the relationship between development and performance management effects outsourcing services and the goals of HCL Technologies. An Organization Perspective on HCL Technologies Introduction In order for a company to effectively provide outsourcing services, it is important that some the internal aspects of the company, such as development and performance management, be established and operating proficiently. In doing so, it is also important that the Human Resource Management (HRM) team know what type of development is needed within an organization as well as establish a good performance management system in order to meet outsourcing organizational strategic goals. “For a company to have a good strategy foundation, certain tasks must be accomplished in pursuit of the company’s goals, individuals must possess certain skills to perform those tasks, and these individuals must be motivated perform their skills effectively.” (Noe, R., Hollenback, J., Gerhart, B., Wright, P. 2010, p. 9) This is where the importance of development and performance management becomes essential for a company. When providing outsourcing services for global clients, it is important that internal aspects such as development and performance management are operating at the highest level. HCL Technologies is a technology...
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...Analyzing Financial Indicators Financial indicators for health care organizations completely assess the strengths of some of the most significant parts of the organization. Establishing dimensions of financial performance provides a primary structure for recognition of important financial indicators. Diverse financial indicators assess different factors of financial performance, for example cost-effectiveness and liquid assets, and all of this figures is necessary to make a knowledgeable conclusion about the financial condition of any health care organization. One indicator alone cannot identify the financial condition, and so multiple financial indicators are necessary to analyze and modify the necessary adjustments to improve solvency, profit, and services for the organization and patient(s). The objective of this essay is to discuss the decisions attained in the simulation of Elijah Heart Center, which is a specialty hospital with expertise in cardiac catherization, pulmonology, and nephrology and a host of other specialties. The three major decision made for the Elijah Heart Center was through bridging a working capital shortage, evaluation of funding options for obtaining medical equipment and funding options for capital expansion. The decisions made through various choices to improve the outcome of each financial situation; the choices could have either improved or worsened the unhealthy trend of loss profitability for the health care organization. ...
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...ASSIGNEMENT 5 financial perspective of pepsico and coca cola business 508: THE BUSINESS ENTERPRISE strayer university by 12/05/10 Coke and Pepsi are the two major soft drink companies in the whole world; both companies have an international footprint. However, they also face substantial competition, as the market for non-alcoholic drinks is highly fragmented. In order to understand the investment characteristics of these two companies, it is worthwhile to take a look at these companies from the financial perspective, comparing their different financial ratios. Some of the important ratios that should be analyzed are the liquidity ratios, profitability ratios, cash flow indicators and investment valuation ratios. By analyzing the financial ratios this paper will help determine which of these two companies the better investment is. Ratios computation and analysis 1) Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). A common liquidity ratio is the current ratio. This is calculated as the current assets / current liabilities. The current ratio reflects the ability of the company to meets its financial obligations for the next year. The current assets reflect assets that can be liquidated quickly, for example cash, inventories and receivables. The current ratio for Pepsi is $12,571 / $8756 = 1.44. The current ratio for Coca-Cola is $17,551 / $13,721 = 1.28....
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...RSM1320 – Financial Accounting FINANCIAL ANALYSIS TECHNIQUES (RATIO ANALYSIS) KEY POINTS TO KNOW 1) Financial analysis is ultimately contextual and purpose-driven. In other words, there is always a reason why you are performing the analysis. You need to be clear about the objective of the analysis. 2) The tools and techniques that you use will depend on your purpose. As we discussed earlier, analyzing the company as an investment opportunity (which generally focuses on indicators of profitability of growth) is often different from analyzing the company from the perspective of a credit (lend or not) decision (which generally focuses on indicators of risk, liquidity, and solvency). 3) Financial analysis will seldom provide an “answer” to your objective or starting question (e.g. invest or not, lend or not). The usefulness of financial analysis is to provide valuable insights and additional questions to ask in arriving at a particular decision. Each individual ratio is a basic “indicator”, but it does not by itself provide an explanation of “why” something happened. To get the most value out of financial analysis, you need to understand how these ratios relate to one another and to the business model (and industry) of the company you are analyzing. This requires experience. 4) There is no single authoritative source providing rules about how particular ratios are calculated. While there are standards of practice (that we will follow), there is also significant...
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...Analyzing the Four Financial Statements N'Gia K. Conyers ACC 561 October 8th, 2012 Charles Royes Jr. Analyzing the Four Financial Statements In the study of accounting there are four different types of financial statements. These financial statements have an important role in the daily functions of many businesses and corporations. Accounting is defined as “the information system that identifies, records, and communicates the economic events of an organization to interested users” (John Wiley & Sons, 2012). The financial statements when working with finances include Balance Sheet, Income Statement, the statement of cash flows, and the statement of owner’s equity. This paper will explain the four financial statements, along with which statement is a best fit to creditors, investors, and management. The financial statement that would be of interest to creditors is the balance sheet. The balance sheet presents outlined information in relation to an organization’s assets, liabilities, and shareholder’s equity. The balance sheet statement also shows the financial position for a specific company at any given time. Under assets are two different sections, current asset, and fixed asset. The income statement provides the details that show the profits and losses over a period, such as one month, three months, and up to one year. The income statement is prepared at the end of the accounting period. In addition, the income statement identifies the amount of net income...
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...Cango Financial CanGo Financial Analysis Report The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company. The investment ratios can be broken down into 4 key areas, efficiency, financial leverage, liquidity and profitability. Starting with efficiency, we have the inventory turnover and receivables turnover ratios. The inventory turnover ratio indicates how many times the company is able to turnover its inventory. In CanGo’s case, the ratio value is low, meaning that it is not effectively turning over its inventory, which also means it isn’t quickly and effectively...
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...Introduction- What is a financial statement analysis: Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. There are various methods or techniques that are used in analyzing financial statements, such as comparative statements, schedule of changes in working capital, common size percentages, funds analysis, trend analysis, and ratios analysis. Financial statements are prepared to meet external reporting obligations and also for decision making purposes. They play a dominant role in setting the framework of managerial decisions. But the information provided in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. However, the information provided in the financial statements is of immense use in making decisions through analysis and interpretation of financial statements. Objectives- What manager need to analysis Financial statement: 1. Prepare and interpret financial statements in comparative and common-size form. 2. Compute and interpret financial ratios that would be most useful to a common stock holder. 3. Compute and interpret financial ratios that would be most useful to a short-term creditor 4. Compute and interpret financial ratios that would be most useful to long -term creditors. 1.Assessment Of Past Performance Past...
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...RSM1320 – Financial Accounting FINANCIAL ANALYSIS TECHNIQUES (RATIO ANALYSIS) KEY POINTS TO KNOW 1) Financial analysis is ultimately contextual and purpose-driven. In other words, there is always a reason why you are performing the analysis. You need to be clear about the objective of the analysis. 2) The tools and techniques that you use will depend on your purpose. As we discussed earlier, analyzing the company as an investment opportunity (which generally focuses on indicators of profitability of growth) is often different from analyzing the company from the perspective of a credit (lend or not) decision (which generally focuses on indicators of risk, liquidity, and solvency). 3) Financial analysis will seldom provide an “answer” to your objective or starting question (e.g. invest or not, lend or not). The usefulness of financial analysis is to provide valuable insights and additional questions to ask in arriving at a particular decision. Each individual ratio is a basic “indicator”, but it does not by itself provide an explanation of “why” something happened. To get the most value out of financial analysis, you need to understand how these ratios relate to one another and to the business model (and industry) of the company you are analyzing. This requires experience. 4) There is no single authoritative source providing rules about how particular ratios are calculated. While there are standards of practice (that we will follow), there is also significant...
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...Simulation Review Paper Patton-Fuller Health Care is a not-for-profit Community Hospital that has many different types of services. Some of the services that are provided within this hospital are: emergency medical care, physical therapy, radiology, cardiology, labor and delivery, and even surgery for everyone. The Cardiac Care Hospital is a very important part of the Patton-Fuller Hospital, within this paper analyzing the financial indicators that help with the decision making that help in both the weaknesses and strengths within the Cardiac Care Hospital (CCH). At the same time, I will also be evaluating the funding options for obtaining medical equipment, and also the funding strategies for the success or failure of capital expansion (Apollo Group, 2011). Within phase one, one of the simulations observed was the great impact was throughout the cost cutting measures. Some of the options that were given and even used were the reduction of staff, and making changes within skills that were being used. By cutting these two cost, may have seen to some as a bad thing, but in the end was something that needed to be done to help the organization and it did not leave the organization in a shortfall. Reducing the staff was a great option because it helped the organization reduce the costs of training that needed to be done. Reducing staff members also meant that the organization would have fewer salaries to pay, meaning more for other equipment that is needed. The other option...
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...management, and board approval depending on the financial size of the decision. The importance of capital budgeting for a company like Stryker is that in order to maintain their 20% growth corporate strategy, they need the assets to do pursue that. That comes in the form of acquisitions, and other business forms such as licensing, investment in PPE, etc. CERs help delegate the work and research required to make smart investments by incorporating multiple requirements which are written out in the CERs. These include a 2 part document that entails an overview of the project, and then the financial analysis that justifies the acquisition in great detail. As per the study, large acquisitions CERs can be multiple volumes in depth. * The CERs involve the use of principles such as Net Present Value. They, on average, require a 5 year future cash flow in the CER. Also they compare IRR and use their 20% growth requirement as a benchmark. They use payback period too, but as far as value goes, takes the backseat to some of the other financial tactics they use. Since the CER is used for all levels of business decisions, the payback can possibly be used in the small dollar investments of current asset accounts such as the purchase of a storage facility. The CER is virtually defined by corporate finance theory, not much irrelevant information is used. This tool serves as a great purpose in facilitating growth due to having pure financial sources of data to inform the upper levels...
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