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Discussion about the finnacial growth of the company

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Reference no: EM132243704

Discussion :

Usually, the financial manager is responsible for the financial accounts whitin any company because they show company's success or distress depending upon the expected versus an actual results. Too, these statements/accounts are entailing the company's income debt to equity ratio along with cash flow testimonials reported on the firm's balance sheet.

Hence, the business holders gain significant understanding in regards to productivity, performance, supply exhaustion and practicality respectfully.

Moreover, financial manager can tell if the company is in the distress by analyzing the balance sheet, which shows proportionally if company has more possessions rather than obligations.

Too, a disturbed company has cautioning signs such as: Cash short fall, poor accounting system, poor internal/ external communication, unethical business practices, loses in market share liabilities are ignored or underreported. MCclure (Mar 12, 2018).

Consequently, a good manager should always monitor the following guidelines: regularly checking of financial statements, keeping himself updated about every single matter regarding his/her company.

Reference

MCclure (Mar 12, 2018). Financial Ratios to Spot Companies in Financial Distress. Investopedia.

Reference no: EM132243704

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