Use a simple hypothetical illustration

Assignment Help Finance Basics
Reference no: EM13878920

Task 1Using your text book, other books, journals and/or internet resources define and distinguish between efficiency and effectiveness in business. Use a simple hypothetical illustration to support your answer. 

Task 2Explain three reasons why businesses are interested in achieving higher levels of efficiency and effectiveness. (6 marks)

Task 3Choose two latest annual reports of one publicly traded company (a company whose shares are bought and sold on a recognised stock market) in any industry and:

a) Calculate the total assets turnover ratio and comment on how efficiently the company is utilising its total assets for two consecutive financial years. (10 marks)

b) Calculate the fixed assets turnover ratio (or non-current asset turnover ratio) and comment on the adequacy of the company's investment in fixed assets (non-current assets) in relation to the revenue generated for two consecutive financial years. (10 marks)

c) Calculate the ratio of revenue to working capital and comment on how efficient the company is in turning over or utilising its working capital annually in each of the last two consecutive financial years. (15 marks)

d) Calculate the operating expense ratio for each of the last two consecutive years. How does the cost of operating the business measure up against the revenue generated by the company (and for the industry in which it operates, if data is available) over the two years being considered? (10 marks)

e) Calculate the return on investment at the company and comment on the efficiency with which its net total assets generate net profit in each of the two consecutive years. (10 marks)

Task 4Briefly explain three drawbacks in the use of financial ratios as indicator of a company's performance overtime. (6 marks)

Task 5Using Kaplan and Nortons (1996) balanced score card as your framework, explain three non- financial methods for assessing a companys performance. (9 marks)

Task 6Basd on your findings in Tasks 1 to 5, comment on the company's overall performance over two consecutive financial periods reviewed.

Reference no: EM13878920

Questions Cloud

Advantages of a culturally diverse workplace : Write a referenced Essay on the Advantages of a Culturally Diverse Workplace Outweigh the Disadvantages.
Why is it true that the use of edi means that : Why is it true that the use of EDI means that trading partners may need to grant access to each other files?
Formulate a motad problem and graph e-tad efficiency horizon : A farmer is deciding between planting several vegetable (or fruit) crops on a 225-acre farm. Based on the annual profits per acre returns for lettuce, tomatoes, peppers, and cucumbers listed below, formulate a MOTAD problem and graph the E-TAD eff..
Write an introductory section for a budget manual entitled : The company you work for has asked you to write an introductory section to its budget manual. Write an introductory section for a budget manual entitled ‘The Reasons for Preparing Budgets'.
Use a simple hypothetical illustration : Task 1Using your text book, other books, journals and/or internet resources define and distinguish between efficiency and effectiveness in business. Use a simple hypothetical illustration to support your answer.
How does the use of public cloud computing reduce costs : How does the use of public cloud computing reduce costs?
Variable selling and administrative costs : Carlsbad Enterprises has a capacity to produce 400,000 computer cases per year.
Prepare cash budget for the months of october and november : Prepare a cash budget for the months of October, November and December 2005. Prepare a schedule of outstanding debtors at the end of each of the months of October, November and December 2005.
Derive the variance-covariance matrix from the data : Use Excel or a statistical package to derive the variance-covariance matrix from the data above.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Find the net proceeds from the sale of each bond

Flotation costs of $30 per bond will be incurred in the process (which implies that f = 2.97%, or 0.0297 in decimal form) and the firm is in a 40% tax bracket.

  The firm has tax rate of 34 and profit margin of 6 the

le place has sales of 439000 depreciation of 32000 and net working captial of 56000. the firm has a tax rate of 34 and

  What would be the percentage change in the price

Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three years to maturity, whereas Bond Dave has 20 years to maturity.

  What is the pv of the project

a project has a forecast cash flow of $128 in 1 year and $139 in year 2. The interest rate is 7%, the estimated risk premium on the market is 12.00% and the project has a beta of .68.

  Determine the present value of inheritance

Suppose you receive a $100,000 inheritance in 20 years. You can invest that money today at 6 percent compounded annually. Determine the present value of your inheritance?

  A firm currently has no debt the firm has 10 million

a firm currently has no debt. the firm has 10 million shares outstanding and those shares currently have a market

  List some common forms of business organization and discuss

list some common forms of business organization and discuss how access to capital differs across these forms of

  What cash flow must the investment provide at the end

What cash flow must the investment provide at the end of each of the final 4 years, that is, what is X? (can you show me the math of how to get the right answer) Can you put the above scenario in the context of a real world example?

  What is the yield to maturity on these bonds

Rockinghouse Corp. plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $402.35. Assuming annual coupon payments, what is the yield to maturity on these bonds?

  The managers of a firm are asked to consider two possible

the managers of a firm are asked to consider two possible new product lines for the firm. project 1 is quite risky and

  Compute the equivalent units of production for each input

Compute the equivalent units of production for each input. Compute the cost per unit. Compute the cost transferred out to finished goods. Compute the ending work-in-process inventory balance.

  Which of the following ratios usually reflects investors

which of the following ratios usually reflects investors opinions of the future prospects for the firm?a. dividend

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd