Financial Analysis : Managing A Business

Abstract : Analysis of financial statement of a company is an important because it is useful to obtain Information

One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even come down. The financial techniques and principles in most cases comprise of quite a number of aspect for instance those that we intend to look at in this paper-the financial reporting. This will basically comprise of the quality of data and information that the company produced to some of the various stakeholders. Other than that, the paper will also analyze the financial position and performance of the organization using accounting ratios. Another important aspect of financial principles is costing. This basically entails the cost of producing goods and services in the company and how it generally affects the overall performance of the company. The paper will also delve into how important costs in the pricing strategy of the business are. It will further come up with a costing and pricing system that can help the company improve. Last but not least, we focus on the company's budgets and budgetary control. Here there are very important areas that have to be looked into, for

The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future

3.) Strong presence in high margin health services business. In addition to UnitedHealth Group’s leadership position in the health benefits market segment, UnitedHealth Group has strong information and technology based health services platform through its business segments which is Ingenix, OptumHealth and PrescriptionSolutions. The “CNN MONEY” (2012) website states Ingenix is one of the largest health information, technology and consulting companies in the world. The UnitedHealth Group derived $2.3 billion of revenues from Ingenix which contributed $284 million (excluding $200 million in goodwill impairment and business line deposition charges) of operating profit, and an operating margin of 12.1% during FY2010.

We had come out two alternatives in order to help Sindy solve the dilemma she faced. The first alternative is expanding her business into middle and senior level segment after 2 years. By expanding the business, Sindy will able to get more profit. This is because the revenue that she will get from senior staff positions is higher compare to junior staff positions. The second alternative that we suggest is doing nothing. Doing nothing means that Sindy have to continue on what she do now and just focusing on the blue collar and junior staff positions.

The costs of the start stage are training costs, rental costs, interest costs, supplies costs (such as papers, powdered ink, stationery… ), utilities cost (such as electronic cost, water cost, cleaning cost, property costs…), depreciation cost, wage cost, facilities cost.

Financial analysis involves the use of various financial statements, which perform several functions. Basics of financial analysis consist of a balance sheet and income statement. Income statement shows revenues and expenditures of enterprises over a certain period of time, usually for one year or semester. Balance sheet shows the assets, liabilities and owner's equity at a specific point in time (usually at the end of the

I picked the topic straightaway when i was browsing through the list of topics provided by oxford brookes. I prefer things that are financial and always like financial management and financial analysis. So it was natural for me to choose this topic to base my project on .

“Financial analysis is the evaluation of an organization from multiple angles to fully understand the greater financial situation and determine how best to strengthen the business. A financial analysis looks at many aspects of a business from its profitability and stability to its solvency and liquidity”.

Monetary Statement Analysis is an investigation which discriminatingly looks at the relationship between different components of the Financial Statements with a perspective to acquire vital and compelling data from these. It a methodology of filtering Financial Statements for assessing the relationship between the things as revealed in these. It is fundamentally a posthumous of the value-based exercises of a venture as unveiled in the Financial Statements in order to judge operational capacity, capacity, gainfulness, dissolvability, managerial effectiveness and

Operations management has been the most crucial part of a business since people started trading goods and services. Operations management deals with the development, manufacturing and production of the goods and services which are then marketed and sold in the market for a profit. It involves and oversees the research and development sectors all the way through production of the goods and services to meet the customers’ requirements. Simply stating, operations management deals with the responsibility to ensure that all of the business operations are efficiently and effectively executed by using the least amount of resources but maintaining the quality standard of the company. Financial analysis plays a crucial part in maintaining a successful and efficient operations management in a company. There are multiple financial ratios which are very helpful to understand the proper management and execution of different sectors within operations management to decrease the cost and expenditures of the company and increase profit and earnings.

The purpose of accounting is to consolidate and process a wide range of financial information to convey the financial health of the company mainly to the owners and potential investors. However, for years, large listed UK firms have been using earnings management to manipulate their earnings in order to meet the pre-determined forecasts for a variety of reasons. Here, it is essential to consider the earnings game. As Walkers (2013) suggests, the earnings game is to do with the directors negotiating with analysts in order to ensure they issue reasonable forecasts so that these can easily be achieved. It is when firms notice that they might struggle to meet these forecasts when they use the principle of earnings management. This practice is going against the initial objective of helping business managers’ reach a decision on the most optimal way of running the business. Instead, these managers are falsifying financial numbers in order to receive incentives. One of the incentives includes receiving bonuses when the company’s performance reaches a specified target. The aim of the essay therefore is to explore the extent to which large listed UK firms manage earnings to meet City earnings expectations, the various techniques used by firms, and whether or not investors should worry about firms employing earnings management to inflate financial figures.

The assignment aims to provide an overview of the important measures needed in order to evaluate the financial and business aspect of an organisation.

As the final results of the business management activities to be reflected by the financial situation of enterprises, so the enterprise financial evaluation methods as a fundamental evaluation system. BSC is not to deny the importance of setting financial data, but to correct may cause financial goals are not good achieve，due to too much emphasis on the traditional financial measures and ignore non-financial measure, making financial goals clearly, can better meet the need of enterprise strategy in different growth stage. The main evaluation index generally includes: return on equity, asset-liability ratio, return on investment, accounts receivable turnover, inventory turnover, cost reduction rate, operating profit and cash flow, etc.

Finance is regarded as the lifeblood of a business enterprise. the subject management is of immense interest to every financial analyzer. It needs special attention because of complexities involves to managing cash to present day industrial function.