Financial Analysis : Operations Management

Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labor into goods and services as possible to maximize the profit of an organization and also to meet customer requirements.

Operations analysis seeks to identify, measure, and improve current performance of key processes and operations within a firm. Areas where ABM is useful include “what-if” analysis, project management, creation and use of activity-based performance

cognizant of the fact that the choices he makes can affect the price a buyer pays

3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations?

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

Ratio analysis is a tool brought by individuals used to evaluate analysis of information in the financial statements of a business. The ratio analysis forms an essential part of the financial analysis which is a vital part in the business planning. There are 3 different ways of assessing businesses performance and these are: solvency, profitability and performance. Ratio analysis assists managers to work out the production of the company by figuring the profitability ratios. Also, the management can evaluate their revenues to check if their productivity. Thus, probability ratios are helpful to the company in evaluating its performance based on current earning. By measuring the solvency ratio, the companies are able to keep an

In general there are 10 ratios that govern the finances of an organization. But, we have been given only three ratios though all the ratios are essential because they acquire nearly 90 percent of the information contained in the financial statements. These can be any but we have to choose the best three that certainly makes the difference. The major three ratios would be the operating margin, it is an essential ratio that deals with the organization’s profitability

Operations Management focuses on the design and management of products, processes, services and supply chains (Diemond, 2014). It considers the acquisition, development, and utilization of resources that firms need to deliver the goods and services their clients want (Diemond 2014). Operations Management consists of many topics which are applied on a daily basis at the company I work for. Some of the topics include process control, lean manufacturing, six sigma, and supply chain management. It is the process that controls how inputs (raw materials, labor, and energy) get converted into outputs (finished goods or services).

Organizations large or small all strive to be successful through fostering a culture of great people, great processes, great products, and great results. Typically, three main functions play into an organization, marketing, operations, and financial accountability. Marketing generates the demand through the promotion of goods and services. Operations creates the goods, handles the movement of the goods, and ensures successful final delivery of the goods or service. The financial accountability is how the organization is doing financially concerning accounts receivable and accounts payable. Of the three, operations is arguably the most important to the success of an organization and has many key components that play into this success including operations strategies, supply chain, inventory control, and cost leadership to name a few.

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.

This week I will present by discussing and differentiating the main categories of a SOCF (Operations, Investment, and Financing.) this discussion and differentiation is going to be supported by an example of a financial statement of a company that illustrates the different components of each category of the SOCF.

3.2) At the drive-through counter of a fast-food outlet, an average of 10 cars waits in line. The manager wants to determine if the length of the line is having any impact on potential sales. A study reveals that, on average, 2 cars per minute try to enter the drive-through area, but 25 percent of the drivers of these cars are dismayed by the long line and simply move on without placing orders. Assume that no car that enters the line leaves without service. On average,

Analyzing a company 's operating expenses is often the most important aspect of equity analysis. How well a company generates operating cash flow dictates how well it can satisfy the claims of creditors and creates value for common shareholders. In order to assess this value creation, investors do well by analyzing a company 's operating income, operating cash flow and operating margins.

The Food and Beverages sector is one of the most important industries in the world economy. The food and beverage industry encompass the harvesting, processing, milling, packaging, transport and distribution of products to consumers. This includes fresh, prepared foods as well as packaged foods, and alcoholic and non-alcoholic beverages. It is a complex, global collective of diverse businesses that supplies most of the food consumed by the world population. (C)

The Food and Beverages sector is one of the most important industries in the world economy. The food and beverage industry encompass the harvesting, processing, milling, packaging, transport and distribution of products to consumers. This includes fresh, prepared foods as well as packaged foods, and alcoholic and non-alcoholic beverages. It is a complex, global collective of diverse businesses that supplies most of the food consumed by the world population. (C)