...Financial Ratios and Quality Indicators Monitoring ratios on a regular basis provides insight into how effectively a business is being managed. Investors/Lenders also evaluate risk by using several sets of ratios; ratios of assets to liabilities, and ratios of lender-investor dollars to owner-investor dollars. Recognize that ratios are only indicators and that only management can tell the full story about a business. The more adept management is at explaining financial ratios to their Investors/Lenders, the better they will understand your business. Key Indicators with their definitions, formula and analysis comments are discussed in the following pages: Page 2 Liquidity: Financial ratios in this category measure the company's capacity to pay its debts as they come due. Current Ratio Quick Ratio Page 3 Safety: Financial ratios in this category are indicators of the businesses' vulnerability to risk. Creditors to determine the ability of the business to repay loans often use these ratios. Debt To Equity Debt Coverage Ratio Page 4 – 5 Profitability: The ratios in this section measure the ability of the business to make a profit. Sales Growth COGS to Sales Gross Profit Margin SG&A To Sales Net Profit Margin Return On Equity Return On Assets Page 6 - 7 Efficiency: Also called Asset Management ratios. Indicator...
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...Question 1: EPS serves as an indicator of a company’s profitability; more specifically EPS is the portion of a company’s profit allocated to each outstanding share. For a potential project to meet the UWA Plastic guidelines the contribution to net income has to be positive, which is an obtainable and reasonable criterion, seeing as optimal financial decision should maximize shareholder wealth/value of equity. The ITF projects’ average annual addition to EPS is $0.018 meaning it meets the company’s criteria. If the ITF project failed to increase shareholders wealth/value of equity, owners would question the viability of the project and this could lead to a situation in which corporate raiders such as Sir Rony Gabbay intervene, leading to a hostile takeover. Therefore this specific criterion has significant meaning and importance. Payback Period is the amount of time it takes to recover or payback the initial investment. This measure focuses on the liquidity of the investment, with projects with shorter life favoured at the expense of longer life projects, which are more illiquid. Under UWA Plastic criterion the project must recover the initial investment within six years. The ITF project has a payback period of 3.6 years meaning the project would be accepted. However, the payback method may not provide a reliable decision as it ignores the time value of money and also ignores all cash flows that occur after the payback period relies on an ad hoc decision. Therefore...
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...ROLE OF FINANCIAL INDICATORS (RATIOS) IN THE MONITORING OF BUSINESS PERFORMANCE CONTENTS 1. Introduction …………. Page 3 2. Cash Operating Cycle …………. Page 3 2.1 Figure of Cash Operating Cycle …………. Page 3 2.2 Financial Indicators (Ratios) …………. Page 4 2.3 Stock Turnover …………. Page 4 2.4 Debtor Turnover …………. Page 4 2.5 Creditor Turnover …………. Page 5 2.6 Find the Number of Turnover days …………. Page 5 2.7 Example …………. Page 5 2.7.a Calculation of Stock Turnover according to formula …………. Page 6 2.7.b Calculation of Debtors Turnover according to formula …………. Page 6 2.7.c Calculation of Creditors Turnover according to formula …………. Page 6 2.7.d Cash Operating Cycle period in days …………. Page 7 3. Conclusion …………. Page 7 1. Introduction When we begin our discussion on the role of financial indicators (ratios) in the monitoring of business performance, its means we discuss cash operating cycle. Cash operating cycle contains the elements of working capital which shows company`s financial position ie how the company earns profit and loss at the starting and ending of financial year. 2. Cash Operating Cycle The cash operating cycle summarizes the various statistics of cash flow and calculates the changes in cash position during financial year. The figure 2.1 shows the elements of Cash Operating Cycle. 2.1 Figure The analysis of figure 2.1: We can state...
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...Financial Indicators Decision Making Simulation Form Date: 2012 What cost cutting options were chosen? Explain why those were chosen? The two cost cutting options chosen were reducing agency staff and changing the mix skill. By reducing contract nurses and other personnel, the Elijah Health Center (EHC) will have a huge cost saving. The salaries of the agency staff are twice that of the regular hospital employees. Through reduction of agency staff, the hospital will also save on the premium it pays to the staffing agencies and their management fees. Changing the skill mix by hiring unlicensed assistive personnel is a good option for saving costs in the long run. This option allows nurses to delegate simple tasks such as feeding and moving patients to assistive unlicensed personnel in order to concentrate more on complicated tasks directly affecting patient care. Though there will be an increase in costs in the beginning, the revenue will increase in the following months. Unlicensed assistive personnel often called care assistants and patient care technicians, usually have 40 hours or less of hospital-based training. Which cost cutting loan option was chosen? Explain why. To help solve the hospital’s current cash flow problem, loan option 1 was chosen. In loan option 1, the interest rate is 9.45% and there is no prepayment limitation compared to option number two which has 9.00% interest rate and has a prepayment limitation of 6 months. EHC will be receiving...
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...HCS/405 Health Care Financial Accounting Many hospitals in the United States are faced with many financial burdens. Hospitals have the challenge of making adjustments according to the economy, patient need, and quality of care. With the downfall of the economy, accounting issues, funding options, capital growth, and capital insufficiency, many hospitals are faced with making and planning financial decision in order to succeed. The Elijah Heart Center analysis simulation shows how to direct finance so that the Elijah Heart Center will have the ability to make good use of the organization funds. Creating a good financial decision for Elijah Heart Center involves analyzing the financial problems that Elijah Heart Center faces while deciding on which course of action should be taken. They must be able to identify and analyze any potential financial problems in order to make financial decisions in take another course of action. In this paper I will show how analysis simulation can help Elijah Heart Center make good use of funds to the best of the organizations ability. The Elijah Heart Center is a Cardiac Care Hospital that is dealing with a significant amount of loss in their accounting issues. The finance Department has reported that the revenue is increasing at a rapid rate with the rising rate of new patients, but the profits are falling. A financial consultant was hired to analyze the financial indicator and make recommendation and options on how to changes...
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...in-game settings - Visibility of aim-circles optimized - Crosshair colors optimized - Version of Artillery crosshair with shell travel time removed - XVM v3.5.0 included with config matching crosshair colors - Artillery and Tank Destroyer angle indicators moved to minimap (XVM) - Clock top left moved to config (XVM) - J1mB0’s logo added as player icon (XVM) 1.22 - World of Tanks v0.8.4 supported - Angle indicator added for Tank Destroyers 1.21 - World of Tanks v0.8.3 supported 1.20 - DebugPanel.swf reintroduced with clock - Font in FragCorrelation.swf fixed 1.19 - World of Tanks v0.8.2 supported - Clock removed - Angle indicator moved to FragCorrelation.swf 1.18 - World of Tanks v0.8.1 supported - Angle indicator for Artillery added - Clock added to DebugPanel 1.17 - World of Tanks v0.8.0 supported - Artillery aiming optimized - Angle indicator for Artillery removed 1.16 - World of Tanks v0.7.5 supported - My logo used as lag indicator - Center marker for Artillery angle indicator added - All sec changed to s 1.15 - World of Tanks v0.7.4 supported - Server side crosshairs removed - Performance optimized - Cassette indicators optimized - Angle indicator for Artillery added 1.14 - World of Tanks v0.7.3 supported - Distance indicators fixed - Design tweaked - Shell travel time added to crosshair_panel_strategic.swf - Max reload...
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...Nursing Sensitive Indicators The American Nurses Association established national initiatives called nursing-sensitive outcome indicators that focus plans/programs to increase quality and safety in patient care. They gauge aspects of direct patient care related to quality of nursing care by reflecting on structure, process and outcomes of nursing care. Structure in regard to staffing and the skill, education and certification of staff; process in regards to measuring aspects of nursing care related to assessment, intervention and RN job satisfaction, and outcomes by improving the rates of specifics in relation to patient outcomes such as in this particular case preventing hospital acquired pressure ulcers, improving patient satisfaction and restraint prevalence. Nursing Sensitive indicators are only specific to nursing and in 1998, ANA developed a National Data base of nursing quality indicators (NDNQI) so they could continue to collect and build on data from studies to expand nursing knowledge related to factors that influence the quality of nursing care. Why is this important? The nursing profession has the responsibility to measure, evaluate and continually improve practice. NDNQI identify where and how the staff is needed and show the need to increase staff in particular areas of nursing care that need improvement. The NDNQI mission is to help the RN in patient safety and quality improvements by providing research based national and comparative data on nursing care...
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...from starting a motor vehicle. Paul R. Marques et al. (1998) states further that The new NHTSA guidelines attempted to differ the preoccupation with accuracy and advocated to key features: a rolling retest and a data recorder. The rolling retest requires operators to retest periodically is or her BAC while the vehicle was running. This feature was included to circumvention such as getting someone else to blow into the interlock, allowing the vehicle to sit idling for long periods to avoid having to restart and retest or using stored air sample to blow into the sampling head of the interlock. Studies by Roth (2007) show that missing a rolling retest not to be a significant predictor of recidivism. The studies conclude the significant indicator was the initial BAC when the individual attempted to start the vehicle. “All variables (gender, age, and BAC>0.16), except test refusal (interpreted in the study as a missing a rolling retest) were significantly related to recidivism.” ( Roth page 348) Paul Marqus, Tippetts, and Voas (2002) in one of the few studies not supported by MADD states that, Two of the key touchstones of science are demonstrating an ability to (1) predict and (2) control human behavior, with out unreasonable restrictions on civil liberties, remains among the more difficult challenges for any scientific or technologically based contribution to social order. Evidence suggests interlock technology is an innovation that succeeds reasonable well in the control...
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...of their duties, approving leave ,conducting staff training and dealing with clients firsthand , caking phone calls making appointments, welcoming clients at reception and informing the stylists of their arrival. Purpose The purpose of their report is to determine whether sajini and Ihara will work successfully together, based on their personality, Interaction and learning styles. They will be working together on a daily basis and so must be compatible in terms of how they interact with one another and also how they plan to run the finance Scope Both Sajini and Ihara completed several personality inductors, It result of which will provides some suggestion as to weather they will be compatible the work environment. They following indicators will be used to ascertain such information . * ------------------------------------------------- Brain tlemisphere * ------------------------------------------------- Interaction styles * ------------------------------------------------- Learning styles * ------------------------------------------------- Personal...
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...Hospital Reimbursement – Differences Between Medicare and BWC The two tables below provide a summary of areas where the Ohio Bureau of Workers’ Compensation (BWC) differs from Medicare for reimbursement of hospital inpatient and outpatient services. Use this document as supplemental material to support Ohio Administrative Code Rule 4123-6-37 Payment .1, of Hospital Inpatient Services, and Rule 4123-6-37 Payment of Hospital Outpatient Services, for the .2, effective dates specified at the beginning of each table. 4123-6-37.1 Payment of Hospital Inpatient Services Effective for Discharge Dates from Feb. 1, 2011, to Jan. 31, 2012 Area Payment adjustment factors Medicare 100 percent of the Medicare rate (Includes both the Medicare portion and the beneficiary portion) BWC • 120 percent of inpatient • • • prospective payment system (IPPS) rate for inliers (non-outlier bills). 180 percent of IPPS rate for outliers Additional 0.25 percent adjustment to restore Medicare’s market basket adjustment Additional 2.9 percent adjustment to restore Medicare’s documentation and coding adjustment Hospital acquired conditions (HACs) provision Reduces IPPS payments when hospitals meet the HAC criteria Excludes the HAC provision Direct graduate medical education per diem (DGME) Does not provide DGME per diem payments under IPPS Provides a per diem add-on payment for DGME for eligible providers Does not reduce IPPS payments Does not apply DGME per diem addon payments to outlier bills...
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...the project is visualised as reports indicators. Therefore the indicator depicts data that is analyzed using a specified process to provide an estimate or evaluation of selected, measurable attributes. For each information need, a candidate indicator or set of indicators are identified.Futher the data elements needed to produce the indicator are identified. After the candidate indicators are identified based on information needs, the availability of the base measures needed to construct the indicator is considered. When the required base measures is not still collected then other base measures could be used to produce the indicator, If producing a candidate indicator is found to be too resource intensive, then alternative indicator would be chosen collected? If not, are they readily available? And if they are not readily available, could other base The PSM process would help to identify the information needed to manage the project successfully. This would inturn help us to know the acquisition project activities and their relation to project goals, objectives, risks, issues and requests for information received. need to know or understand about my acquisition project activities and products as they relate to project goals, objectives, risks, issues and requests for information received from the enterprise level or other external sources measures be used to produce the indicator? If you determine that producing a candidate indicator will be too resource intensive, you...
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...managers do not understand the strategy or fail to select the right measure, management of the company may be misled by not measuring what needs to be measured. As Kaplan and Norton (1996) indicated, the art of defining the KPIs rests in the performance drivers (leading indicators) that enable the outcome KPIs (lagging indicators) to be achieved. Leading indicators are useful to have as they give the time to influence the outcomes KPI (Eckerson, 2005). There is a third type of KPI that can be selected which is the diagnostic indicator. The diagnostic indicators are not leading or lagging indicators; they measure the health of the operations just like measuring the human temperature that should always be under a certain level. While selecting the leading indicators for a certain outcome KPI, managers should do a brainstorm session to understand what drives the performance of this specific outcome KPI (lagging indicator). Good mix of KPIs should be (1) linked and aligned with strategic objectives and initiatives; (2) covering both strategic and operational metrics; (3) varying between leading, lagging, and diagnostic indicators; (4) balanced through the four different perspectives of the balanced scorecard (BSC) (financial, customer, internal, people and organization). As Eckerson (2006) mentioned, KPIs should be reviewed and updated regularly because they have certain life time and...
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...Information not my work Signposts of Development RBM in UNDP: Selecting Indicators Contents What indicators tell us about the wind 1. Introduction 2. Indicators Only Indicate 3. Types of Indicators 4. Qualitative and Quantitative Expressions of Indicators 5. Selecting Indicators 6. Indicators are Practical and Observable 7. A Shared Commitment With Partners 8. Baseline, Target and Timeframe 9. Indicator Data Collection 10. Conclusion Figures 1. Assessing performance along results 2. School enrolment as an indicator of access to education Tables 1. Examples of outcomes and outcome indicators 2. Indicators according to relationship between output, outcome and impact 3. Examples of output and outcome indicator scales 4. Qualitative observation of advocacy and upstream policy results 5. Selection criteria for indicators 6. Sample indicator monitoring plan What indicators tell us about the wind Who has seen the wind? Neither you nor I. But where the trees bow down their heads, The wind is passing by. – The Wind, Christina Rosetti, 1830-1894 If we want to know if the wind is blowing, the bowing treetops are a good indicator. That the treetops are bending may tell us many different things: the coming of a change in seasons; that it is a good day for children to fly kites; or that bird nests may fall down. What it tells us depends on who we are and what we want to know...
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...holistic approach. BSC was initially introduced by Kaplan and Norton (1992) to overcome the incompleteness of traditional measures which focuses on lagging indicators, especially financial indicators such as Return on Equity (ROE) and Return on Investment (ROI). BSC has progressed from being a measurement tool to a management tool, and currently is an icon of strategic performance management tool (Brudan, 2010). The four perspectives BSC proposes four different perspectives in the co-ordination of the entire organization’s activities in present and future situations (Kaplan and Norton, 1992; Parmenter, 2010). 1. Learning and growth perspective identifies the excellence competencies (e.g.: human capital, information capital, organizational capital) that an organization must possess in order to enjoy value creation. 2. Internal perspective focuses on the organization’s internal operations, allowing managers to assess their business efficiency. 3. Customers’ perspective identifies customers’ leading indicators such as customer satisfaction and brand recognition in order to ensure strong customer loyalty. 4. Financial perspective, which complements the other perspectives, evaluates the organization’s profitability using tools such as the ROI and the EVA. Using a combination of leading and lagging indicators, BSC has the advantage of giving a complete snapshot of a firm’s performance. BSC was introduced to counter the weaknesses found in the traditional measures...
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...Submitted by: Group-7 Using differential data for constructing an index which is leading indicator of economy. Decoding the economic data to predict economic health. Leading Indicators of Economic Growth Indian Perspective 1. Introduction Leading Indicator approach is helpful in predicting the health of economy and take corrective fiscal or monetary policy in anticipation. 2. Economic Indicators Leading, Lagging and Coincident indicators confirm what is happening in our economy. Leading Indicator: Predict what the economy will do in the future. Example: hours worked per employee. If the hours are rising, firms should increase hiring. Lagging indicators: confirm what leading indicators predict. Lagging numbers change a few months after the economy does. Example: unemployment rate. It will fall after a few months of economic growth. If the leading indicator of hours worked is increasing, after a few months the lagging indicator of unemployment should fall. Coincident indicators: mirror what the data is saying. It is generally what is happening right now, for example, the jobs report. If a leading indicator is predicting future job gains, a lagging indicator is saying unemployment is falling, a coincident indicator will tell you the current employment number. 3. Business Cycles 3.1 Definition Fluctuations found in the aggregate economic activity. It is cyclical, consisting of expansions followed by recessions, contractions and revivals which merge into the expansion...
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