Analysis of operations, Financial Management

You must analyze the operating performance of your company.

You will use ratio analysis and primarily using Liquidity, Profitability and Working Capital ratios. You will use a graph for each ratio to present the projected trends and provide intelligent discussion of what you observe. Stating they are going up or down and "this could be a problem" is not adequate. You should determine if the change(s) in the trend is significant and, if so, what could this mean? You should reference specific changes on the Balance Sheet, Income Statement and Cash Flow Statement to support your discussion. You can also use other details provide in the company's 10-K and Annual Report.

After you have completed each ratio analysis ask yourself, "does this say anything important that is not obvious to the casual observer?" Always keep in mind that this is going to be used to make an important investment decision and should be at a high, informative level.

Each ratio should have it's own graph and one benchmark ratio. Use the following ratios as a minimum:

a. Gross Profit Margin

b. Operating Profit Margin

c. Return on Sales

d. Return on Assets

Posted Date: 3/19/2013 2:53:07 AM | Location : United States







Related Discussions:- Analysis of operations, Assignment Help, Ask Question on Analysis of operations, Get Answer, Expert's Help, Analysis of operations Discussions

Write discussion on Analysis of operations
Your posts are moderated
Related Questions
Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard.  If not, reject it.  While ranking the projects, projec

What are some of the factors that common stockholders consider when deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Gene

Goal of Shareholders wealth maximisation Shareholders' wealth maximisation goal gives us the best results since effectsof all the decisions taken by company and its managers ar

Q. Diffrence between present values of future cash ? The difference among the present values of future cash inflows generated by an asset and its cost is known as net present v

Seasonal Variation Under this variation, we observe that the variable under consideration shows a similar pattern during certain months of the successive years. An example of s

What is triangular arbitrage?  What is a condition that will give increase to a triangular arbitrage opportunity? Answer:  Triangular arbitrage is the method of trading out of th

Q. What is Disadvantages of IRR Method ? Disadvantages of IRR Method:- (i) Computation of IRR involves tedious calculations. (ii) Occasionally this method produces more t

Meaning of Capital Budgeting Decisions relating to irreversible commitment of funds to projects whose profits are to be reaped over a time span longer than the current account

Consumer Advisory Panel (CAP) of ASIC It was established in 1998. Its role is to advise ASIC on current consumer protection issues and give feedback on ASIC policies and activi

Callable bonds give the right to the issuer to redeem the bond prior to its maturity date, at a specified call price. These bonds are beneficial to the