Healthy Business Essay

Profitability ratios are used to measure the overall efficiency of thebusiness, as well as management effectiveness. Examples of profitability ratios include the gross margin ratio and the net margin ratios.

The provision and use of personal protective equipment could include using gloves, glasses, earmuffs, aprons, safety footwear, dust masks.

The profitability ration in a financial analysis is the ability of the organization to generate a profit. This ratio looks at areas such as net income, revenue, gross profit, earnings before taxes and interest and operating profit to name a few. Profitability shows the bottom line numbers for a company and is the goal that most organizations strive for. Ratios examined were gross profit margin and net profit margins

The financial performance of the company over the years six t thirteen is shown in table no 7. The data includes Revenue generated over the years, Earning per share, Return on Investment and Stock Prices. Chart 5 shows that there has been a decline in the revenues generated. Charts 6 to 8 all show a decline in Earnings per Share, Return on Equity and Stock Prices suggesting a poor financial performance by the company.

To consider this I will be looking at the Income Statement. If the company’s revenue exceeds its expenses it will report net income or will report a net loss. This will report on the success or failure of the company’s operation by reporting its revenue and expenses.

In Radley Balko’s essay “What You Eat Is Your Business,” Balko argues that what we put into our bodies is our business, not the government’s, and that personal responsibility should be primary in our nutrition choices. I agree wholeheartedly. However, while I do agree that personal responsibility is paramount, in the new age of the Affordable Care Act (which had not been implemented prior to Balko’s writing), it is becoming hard to say that the government should stay out of my business, when healthcare is now, by law, the government’s business. Critics of personal choice argue, like David Zinczenko does in his essay “Don’t Blame the Eater,”. These two authors both help me understand each other that the government must regulate the fast food industry similar to how they regulate the tobacco companies. How absurd it is that the government needs to regulate my waistline?

The profitability ratio shows the ability for a company to generate profits. Ratios that are used calculating profitability of a company are return on assets and return on equity. The return on assets calculates the ability of a company to effectively use assets to generate income, the percentages per quarter in year one are; 76%, 22%, 34%, 37%. This shows profit during each quarter. In years two, three, and four the percentages are; 68%, 54%, 49%, 38%. These ratios show a slight decline but still a solid profit. The return on equity shows the amount of money earned per dollar investing into the company by shareholders. By quarter, year one return on equity is .81 .61 .28 .29, years two, three and four are all .32. These numbers show an above average return, the average return in the United States is between .10-.15, and over .20 is considered above average (Kennon, 2011.)

In order to ascertain how well a company is performing, analyses must be done in regard to the business being stable, including its’ ability to pay debts, how much cash or other liquid assets are available, and whether the organization is viable enough to continue operations. These analyses typically look at income statements, balance sheets, and statements of cash flow, where current and past performance will be studied with the goal of predicting how the company will perform in the future.

Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.

Difficult to define, ethical responsibility is the ability to recognize, interpret and act upon multiple principles and values according to the standards within a given field and/or context (Investopedia LLC., 2015). Social responsibility is the concept that businesses develop a positive relationship to the society and environment, which they operate; and not focus, solely on maximizing profits (Stan Mack, 2015).

Health and wellness in the work place is a vital part to a company’s success. Employees who are healthier and more productive are less likely to call out from sickness. There are not many companies that have affordable health care coverage for employees. More companies should make healthcare affordable for their employees and their family. Research has been done on how effective health and wellness programs can be in the workplace. Throughout the reading these points will be discussed. The effectiveness of health and wellness in the workplace will also be spoken of. Health and wellness activities in the workplace will be a positive move for companies and employees.

Every company for example Wal-Mart worries about its profitability. One of the most regularly utilized implements of financial ratio analysis is profitability ratios which are utilized to figure out the bottom line of the company. Profitability measures are vital to corporation managers and owners alike. If a small industry has outside stockholders who have put their own money into the corporation, the primary owner surely has to show profitability to those equity stockholders. (Blanchard, 2008)

Profitability (performance) ratios are used to assess a company’s ability to create equity as compared to its debt and other appropriate expenses created during a particular time frame. A favorable analysis of profitability ratios will reveal that a company’s value is higher than a competitor’s value.

Profitability ratios refer to the relative measure to what an actual created profit. Through these ratios the company is allowed to see how profitable the company. In addition it can serve as an examination of the overall performance of the company’s operations and how do these compare to past performances or other companies. The ratios in which accounting measures the profitability of a company are Profit Margin, Price over Earnings, Return on Equity and Return on