A Critical Evaluation Of Financial Performance Essay

Although performance cannot be judge alone with 360-degree assessment, it provides a commentary aspect that will assist an organization in Leadership Development and Succession Planning. Including the 360-degree appraisal in the performance management process will provide a broader perspective about an employee’s performance and detail to annual appraisal. In addition, the technique facilitates greater self-development for an employee. Moreover, it enables an employee to compare his or her self- evaluation about performance with the perceptions of others.

Warren Company makes candy. During the most recent accounting period, Warren paid $3,000 for raw materials, $4,000 for labor, and $2,000 for overhead costs that were incurred to make candy. Warren started and completed 10,000 units of candy, of which 7,000 were sold. Based on this information, Warren would recognize which of the following amounts of expense on the income

In the case of Assessing a Company’s Future Financial Health, the case concentration is on SciTronics, a medical device company, performance measures based on the organization’s three primary financial data sources in Exhibit 1 & 2. Utilizing the 9 steps of corporate financial system, I will be able to analyze the financial health of the company to assess whether it will remain balance over the ensuing 3-5 years. The measures are grouped by focusing on “Financial Ratios” such as: 1.) profitability measures, 2) activity measures, and 3) leverage and liquidity measures. Using the financial data sources, I would be able to make recommendations regarding SciTronics 126 million loan request.

An individual stock's diversifiable risk, which is measured by the stock's beta, can be lowered by adding more stocks to the portfolio in which the stock is held.

Next, the 360-Degree Feedback is also used to measure an employee’s performance. Through research, the 360-Degree Feedback sole purpose as David Bracken states is to “be seen merely as a tool or used as a one-time event. Rather, it must be understood as part of an ongoing process of assessment, performance evaluation, and discussion of performance with supervisors, subordinates, peers, and others.” More so, the 360-degree feedback is useful when considering the employee’s feedback and leadership skills.

In order to evaluate company’s operational strength and weaknesses accurately it is important to have access to more than one year worth of data. The company, of course, will not be evaluated on the basis of couple of ratios, it is very important to analyze all the available information to put pieces of puzzle together to see the overall impression of the company and its attractiveness to creditors, investors and stockholders.

For instance, a company’s mission statement can include a 360 degree feedback portion. 360 degree feedback occur when an organization seek to receive feedback regarding their products and services from everyone affecting by it, such as an elementary school teacher receiving feedback from parents, students, fellow teachers, principals, etc. (Vidya, & Ambrose, 2017). United can explicitly mention the phrase ‘360 degree feedback loop’ in their mission statement to reveal how they will listen to a variety of voices, ranging from pilots, flyers, and flight attendants to ensure what adjustments and additions employees need training on in order to best serve their customers and

In this case the concentration is on “Company Performance Measurement”, using the “Ratios”, ‎before we answer to the question, we have to focus a bit on the “Financial Ratios”‎

A 360-degree feedback system is also known by a number of other names such as a multi-rater feedback, multisource feedback, or multisource assessment. Using this model involves providing feedback from a number of sources and directions on the hierarchical organization chart such as including superiors, sub-ordinates, customers and peers. Therefore this model is able to collect a variety of different perceptions about an individual's performance. A literature review was conducted that examined the 360-system from different perspectives of the evaluation sources and finds that though the system can provide more comprehensive sets of data that sometimes the complexity of which serves to provide no value. However, in many cases, if administered properly the 360-degree evaluation system can be a valuable tool used for professional development in an organizational setting.

360 degree feedback system as a performance evaluation tool as long as the understanding of its intent is understood. “There are three key steps in the successful implementation of 360 degree feedback systems in an organization. The three steps are that it must fit the organizations culture, make it psychometrically sound, and used with care” (“Best Practices”, 2012). It is also important to train the feedback providers to be sensitive, respectful and polite. Treating employees in a friendly and respectful manner and offering constructive advice will make them more open to accepting the performance

This report also uses some forecasting technique to evaluate the future position of the company. The discount rate (WACC), which incorporates the risk-free rate and risk factor for individual stock, is the key driver of share prices. The sensitivity analysis shows that the theoretical share price is very sensitive to change in WACC. Thus, slightly changes in WACC will lead to a significant impact on the current stock price. The factors that can take the place of WACC such as market return, the company’s beta, risk free rate, and tax rate should be used to observe the fluctuation of stock price which is WACC forecast. This may indicate that ABC value is currently overvalued since the valuation of the share is slightly lower than the actual share price. In addition, although the value of ABC might increase in the future, share price is changed by the movement of WACC. Therefore, it should not hold the shares in the company.

The balance sheet and Income statement are the most important financial statements of the company that help conduct current analysis of company and evaluate its trends overtime. The balance sheet represents the company snapshots of its financial position on the last days of accounting period. Apple balance sheets, which represent a snapshot of its ending balances in asset, liability and equity account as of the date stated on the report, are changes each year from 2003 to 2014. On the other hand, the income statement shows its financial performance over 2003 to 2014. Apple basically ends its accounting period in September. Most of the long-term debts are in the form of the bonds. According to appleinsider.com, Apple recently issues a new euro bond worth about $2.26 billion with a maturity date on January 17, 2024 and coupon rate of 1.375% payable annually. The first payment will occur on January 17, 2016. Moody’s recently assigned a rating of Aa to Apple Inc. 's senior unsecured note issuance. Thus, Apple recent capital expenditure amount to 11,488 million according to morningstar.com. The analysis of financial statements is conduct to compare Apple with one of its closest rival Hewlett-Packard and twelve ratio were calculated. From table1 and chart1, the current ratio that determine the company ability to meet its short term obligation shows Apple’s current ratio is higher than that of Hewlett-Package from 2003 to 2014. That is, Apple is solvent than Hewlett Packard. Table

Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ

Based on the financial ratios given, this section will compare and contrast the financial strengths of Company X and Company Y in order to suggest Tringale Ltd to take decision regarding which of the above companies to chose for investment. This section provides comments on financial performance areas based on the data given, and presents report to the Board of Directors of Tringale Ltd by recommending which of the two investment opportunities is better.