Western Chemical

Wysocki says “tracking project performance using metrics, like schedule performance index (SPI) and cost performance index (CPI) and discussing the results with project stakeholders will eliminate surprises later in the project and may lead to a successful completion of your project” (p.638). Earned value analysis (EVA), otherwise known as earned value management (EVM), has been around for many years (Wysocki, 2012). Many say that EVM originated in the federal government and later was deployed in the private industry. It was noted in earlier discussion, actual cost, earned value and planned value looks at one form of analysis and schedule performance (SPI) and cost performance index looks at something else. They are computed as follows: SPI = EV / PV CPI = EV / AC. The order entry

Part of the Earned Value Management technique is the monitoring of variances from the approved baseline of costs and schedule. The variances are useful in determining the overall project health and status.

AE = Profitability and/or decision analysis is applied appropriately in the analysis of at least three strategic alternatives and at least one other relevant performance management concept or tool is applied appropriately in the quantitative analyses;

* Return on Sales (ROS) – ROS is the percentage of each dollar of sales that is left as a profit. For example if a company has $100 in revenue and $20 in profit, at the end of the period they have a ROS of 20%. ROS is best used when compared to other companies within the same industry. This is because different industries can have different levels of ROS depending on the competitiveness level. Competiveness can drive prices down overall in the industry, which will drive down ROS for all companies. A high ROS can indicate premium pricing in the industry or great efficiency where as a low ROS can be an indicator of financial trouble such as a company slashing prices just to garner

H. Rate of Return on Net Sales: This ratio is used to find profit made per dollar sale. Company G ascended its percentage (5.43% to 6.13%). Average for the industry is a 4.60% according to Yahoo Finance. Last quartile industry data shows 7.55%, above Company G ratio. Rate of Return on Net Sales is of no concern for Company G.

To analyze firm performance we are going to focus in no four key areas: financial, position, profitability, market performance, and organizational health. To identify position for a public company we are going to use the total debt/equity metric. The company has a debt/equity of 40.4 which is more than First American Financial at 21.72. From a profitability standpoint we will focus on the net profit margin ROE, and relative return on assets. Fidelity’s net profit margin at twelve months is trailing at 8.73% trending above First American Financial, one of its direct competitors at 5.66%, which puts them in the top 3 companies in its industry. (“Yahoo” 2015). When looking at the return on assets they are slightly ahead of First American Financial with a 4.92% versus their 3.84%. As we take a look at ROE we see that Fidelity did just a bit better than FAF with 11.48%. We can conclude that Fidelity fared well on profitability. Comparing First American Financial to Fidelity in regards to market performance fidelity is trending up with a 1.26% change, while FAF is on a downtrend of 1.68%. Lastly, we look at organizational health. Employees have ranked Fidelity at 3.7 out of 5 stars, which put them at a good grade in this category (“Glassdoor” 2015).

We began with a look at your efficiency ratio, concentrating on your receivables turn over for the past year. This reflects the time between your sale and actual collection. If a company 's Turnover

In summation, return on investments (ROI) and its historical roots involving the Du Pont system have an extensive history which paved the way for cost accounting, financial accounting, and capital accounting. The (ROI) and (ROE) formulas are prominent in accounting, textbooks, and finance as well as health care professionals who use these formulas. Then, hard and soft benefits of projects vary depending on the for-profit and not-for-profit organization. The soft benefit also known as (qualitative data) is most useful for when a project team wishes to explore the root causes of project success or failure. Overall, hard methods primarily use data collection measure for objective realism. When it comes to softer

The primary advantage of EVA is that it provides a measure of wealth creation that aligns the goals of

In this writing, we will discuss about WACC, EVA, their uses in evaluate a firm 's performance… and apply into a particular case of comparing performance of Coca Cola and Pepsi based on the past and forecasted data.

The transport division will have to increase allocation to Merseyside. The proposal will generate excess capacity for the division and will increase the demand of new tank cars. The costs generated for these cars would cost GBP2 million and have a depreciable life of 10

2. Asset Turnover rate (Revenue/ Asset) this ratio can measure how efficiency Sears to use its asset for revenue.

There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.

• Will Need a New Tank Car to anticipated growth of the firm in other

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.