Economic Performance And Its Impact On Financial Performance

Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy

Thesis: The best to improve the economic conditions is to use Dr. King way and be passive aggressive. Malcolm X´s way was to force people into giving them what they wanted and that was only making it worse and had no affect on improving their economic conditions. Not only was Dr. King´s way non violent but it also had a greater affect on the economic conditions.

This research paper is prepared for purposes of assessing financial condition as well as overall operating performance of two same sector entities.

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.

Ford Motor Company is one of the largest United States automotive corporation company. The success of Ford Motor Company can be measured by analyzing and computing the three different valuation ratios, three different profitability ratios, and three financial strength ratios for three consecutive years. The outcome of the results can determine if the Ford Motor Company is a good investment. To enable investors and creditors to analyze these goals, Ford Motor Company distributes annual financial statements. With these financial statements, liquidity of Ford Motor Company is measured by analyzing factors such as the market value, market book value, price earnings ratio, enterprise value ratio, which provides the valuation ratios. Profitability ratio is the ability of business to earn a satisfactory income, which consist of gross

Firstly, the metrics of EBIT/FTE better engineer and average project profitability index cover the financial aspect. Secondly, the metrics

Also, according to its leverage ratios, the company’s debts are not only very high, but are also increasing. Its decreasing TIE ratio indicates that its capability to pay interests is decreasing. The company’s efficiency ratios indicate that despite the fact that its fixed assets are increasingly being utilized to generate sales during the years 1990-1991 as indicated by its increasing fixed asset turnover ratio, the decreasing total assets turnover indicate that overall the company’s total assets are not efficiently being put to use. Thus, as a whole its asset management is becoming less efficient. Last but not the least, based on its profitability ratios, the company’s ability to make profit is decreasing.

The current economy has hurt many retail businesses. Every month another retail giant closes its doors. Retail stores which we never would have imagined have gone bankrupt. Retail sales have declined greatly. Major cause of this declination is because many people are unemployed and cannot afford to purchase anything. Retailers are forced to discount prices to increase sales, but discounting still hurts margins. Retailers are assuming a very

The United States has the most powerful advance technological and largest economy in the world. In this economy, the one who make most of the decisions are those private and individual business firms. The state governments and the federal usually buy needed services and goods mainly in the private market place. Unlike The United States counterparts in Western Europe and Japan, The United States firms keen on greater flexibility in making settlement to enlarge capital plant, to lay off workers and create new products. Nevertheless, The United States are facing higher opposing to enter their foes’ home markets more than foreign firms face intruding into US markets (indexmundi, 2015).

Reserve coverage ratio, despite the increase in loss reserves, is decreasing dramatically, from 213% in 2006 to 87% in June 2008, indicating an enormous increase in non-performing assets (NPA). The main reason on increase in NPAs the fact that high percentage (32.9%) of company’s total loans is Real Estate loans. This is the reason that company’s interest income has decreased despite the increase in loans made in 2008. Efficiency ratio is basically an operating expense margin measure, the lower the better. The above 60 percent efficiency ratio, 50 percent generally regarded as optimal, is an indicator of company's deteriorating performance.

Throughout the years, the United States of America has endured a very strong economy. Although there have been many obstacles of hindrance such as trade deficits, wars, hostile governments and embargo’s, the economic status of the United States still continues to prevail. Just to name a few, the economy of this country survives on simple commodities such as pork, oranges, precious metals and the productive efforts of its citizens. In this paper, I will not only introduce and discuss the logistics of both the United States and the United Kingdom; I will discuss its key economic obstacles and its economic well being.

The key financial indicators for evaluating financial performance of any bank are Profit Before Tax, Capital Ratio, Adjusted Gross Leverage, Loan Funding Ratio, Net income, Assets and Liabilities, Equity and Share Holders return.

This study examined the financial performance of National bank and Allied bank of Pakistan during (2008-2012). In this research project financial ratios are used for data analysis and financial performance is measured by bank size and financial ratios. These financial ratios are return on asset, return on equity, earning per share, capital adequacy, cash to total asset, investment to total asset, advance to total asset, total liabilities to total asset, Non-Performing loan to gross advance and Non-performing loan to equity. Financial ratios of both banks are different which creates difference in the financial performance of both banks. These ratios return on asset, earning per share, capital adequacy ratio, cash to total asset ratio, investment to total assets ratio and bank size are comparatively greater for National bank moreover Allied bank

After subtracting all economic costs from operating profits after taxes EVA reveals the true economic surplus available for further investment. Traditional cash flow analysis can easily disregard companies with negative cash flows because main purpose of traditional cash value metric is to control cash generation. In contrast, the main purpose of EVA is to optimize resource allocation. At difference to accounting measures, EVA highlights the gap in performance, and hence, aligns the interests of managers and shareholders. The link between shareholders value and economic profit of the company becomes more transparent. At difference to traditional accounting measures of corporate profit, EVA fully accounts for the company¡¦s overall capital costs. It includes both, the direct cost of debt capital and the indirect cost of equity capital. The cost of capital is the minimum return required to pay shareholder¡¦s equity . EVA can therefore determine whether or not the business is creating value but it can also indicate how much value is created at different business levels.

There are many modern and traditional methods in valuing the performance of the company among them EVA, CVA are modern methods where as EPS, ROI, ROE etc. are some of the traditional methods. modern and traditional methods are not only used to check the performance of a company but it also used in investment decisions by the investors. Stern Stewart, managing partner of M/s Stern Stewart & Co. introduced a modified concept of economic profit in 1990 in the name of Economic Value Added (EVA) as measure of business performance and CVA is only a cash consideration in EVA. In this paper an