Financial Report : A Nyc Multinational Textile Corporation Hired A New Manager

1150 Words Jul 23rd, 2015 5 Pages
3.
A NYC multinational textile corporation hired a new manager based on their education and work experience as a Baseball manager for 12 years in Houston Texas. He could not fix the problem of his company losing sales to competitors and company stocks were trading at a record low of $12.00 per share from 6 months high of $36.00 per share.
How will you turn the company around, if you were hired as the new manager?
Liquidity of a company is a company’s ability to measure the extent to which a business can convert assets or has cash availability in order to meet the short-term liabilities and immediate obligations. Without this a company can fail very quickly.
As the new manager it is clear that the liquidity of the company is not in good standing, but in order to determine why this is the case an evaluation of the financial reports, the management structure in addition to a SWOT Analysis once the two aforementioned tasks have been completed.
While reviewing the financial statements, I would sit with a forensic and managerial CPA/CFA to do simple liquidity calculations of the previous to current years in addition more details and in depth investigation to finding if there is any faulty financial behavior. I would consider that there is a possibility that the company trading value has decreased due to poor financial management that affects where money should be invested to in order for the company to have a competitive edge.
Evaluate the liquidity ratios such as the current…
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