Financial Condition Essays (Examples)

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Still, this is clearly indicative of the company's inability to quickly and efficiently sell its products and collect the money owed by customers.
6. Debt ratio

The organization's debt ratio has increased slightly compared to the previous year, but still remains significantly below the industry average. This virtually means that the company is strong as it uses less debt to support its operations, compared to other companies in the industry.

7. Times-interest-earned ratio

The times interest earned ratio is significantly higher than the industry average, meaning that the firm is better able to pay its debt. This adds to the internal organizational strengths.

8. ate of return on net sales

The rate of return on sales is comparable to the industry averages and is even higher than the same ratio through 2011. This means that the company should not face any major concerns regarding this financial indicator.

9. ate of return on net assets

The rate of….

financial condition of a hypothetical town; Swobodaville. The paper analyzes the town's revenue structure, and expenditure profile among others. In addition, paper outlines how public organizations within this town use data from audits and assessments to increase their effectiveness.
Financial Condition

There are several factors that are likely to influence the town's revenue structure. These factors are economic growth, taxations among others. The town has taxation waivers which may have led the increase in revenues from the first to the fifth year. There is a likelihood that the town has been having an increasing revenue base which has led to the increase in revenues. The level of government spending has steadily risen. The increase in government spending on state-provided goods and services including public and merit goods is likely to result in increased revenues for the town's households (Kirchler, 2007). Besides, incorporating revenue neutral individual income tax change that integrates reducing….

0
$0.0

Net income available to common stockholders

$17,758.5

$16,468.7

Common dividends

$5,400.0

$5,048.0

Addition to retained earnings

$12,358.5

$11,420.7

Calculated Data: Operating Performance and Cash Flows

2012

2011

Net operating working capital (NOC)

$1,464.0

($2,108.0)

Total operating capital

$144,629.0

$136,320.0

Net Operating Profit After Taxes (NOPAT)

$19,182.7

$17,926.7

Net Cash Flow (Net income + Depreciation)

$17,758.5

$16,468.7

Operating Cash Flow (OCF)

$19,182.7

$17,926.7

Free Cash Flow (FCF)

$10,873.7

N/A

Calculated Data: Per-share Information

2012

2011

Earnings per share (EPS)

$5.26

$4.76

Dividends per share (DPS)

$1.60

$1.46

Book value per share (BVPS)

$22.63

$20.61

Cash flow per share (CFPS)

$5.26

$4.76

Free cash flow per share (FCFPS)

$3.22

N/A

LIQUIDITY RATIOS (Section 3.2)

Industry

2012

2011

Average

Liquidity ratios

Current Ratio

0.83

0.88

1

Quick Ratio

0.22

0.23

0.3

ASSET Management RATIOS (Section 3.3)

Industry

2012

2011

Average

Asset Management ratios

Inventory Turnover

10.71

10.98

8.1

Days Sales Outstanding

5.3

4.85

2.68

Fixed Asset Turnover

3.28

3.23

n/a

Total Asset Turnover

2.31

2.31

2.4

DEBT Management RATIOS (Section 3.4)

Industry

2012

2011

Average

Debt Management ratios

Debt Ratio

62.41%

63.13%

60.60%

Debt-to-Equity Ratio

1.66

1.71

0.65

Market Debt Ratio

35.51%

37.13%

N/A

Times Interest Earned

13.47

12.30

n/a

EBITDA Coverage Ratio

11.94

11.01

N/A

PROFITABILITY RATIOS (Section 3.5)

Industry

2012

2011

Average

Profitability ratios

Profit Margin

3.79%

3.68%

3.79%

Basic Earning Power

13.69%

13.73%

n/a

Return on Assets

8.74%

8.52%

8.90%

Return on Equity

23.26%

23.09%

21.95%

MARKET VALUE RATIOS (Section 3.6)

Industry

2012

2011

Average

Market Value ratios

Price-to Earnings Ratio

12.96

12.56

16.2

Price-to-Cash Flow Ratio

12.96

12.56

10.4

Price-to-EBITDA

0.12

0.11

n/a

Market-to-Book Ratio

3.02

2.90

3.34

There is some significance to al-Mart's ratios in relation to the industry. The company has a higher degree of leverage and it generally has operating ratios that are slightly poorer than the industry average. The….


Ratio analysis is a useful way of gaining a snapshot of an organization. It is a transparent system of analysis reporting. These ratios can then be analyzed to identify an organization's strengths and weaknesses as well as useful insights. One thing that is important to realize is that the ratios lack the backing of financial theory. Theory says what should be the case or value. In the case of financial ratios, there is no way to identify a "theoretically best" value for any of these ratios. Essentially, financial ratios are simply nothing more measures that have been developed and evolved over time. They are therefore imperfect measures and need to be treated that way. It is usual that financial ratios are grouped together by their purpose in the ledger. There are a host of different classifications. However, the most commonly used classifications are liquidity, debt, activity. Typically one would not….

Financial Examination
PAGES 2 WORDS 705

Financial Examination
The overall examination of financial documents is integral to the proper functioning of government entities. For one, examinations help to prevent budgetary shortfalls that may jeopardize the economic viability of governments. Stress tests, are particular useful as they provide outlooks contingent of varying macroeconomic situations. These stress test and examinations, when done correctly, allow stakeholders to make proper assessments as to the financial stability of their government. Without these assessments, unexpected events may cause policy changes that harm society overall. Aspects such as the budget cuts currently underway in many of the nation's largest states are a direct result of lackluster financial examinations. Consequently, the individuals will have to sacrifice in the form of higher taxes and lower benefits (McKenna, 2006).

When evaluating Swobodaville's financial condition based on the partial list of factors given, a number of elements cause concern. First, the low income, sales tax exempt households, as a….

Financial managers and CEO's play important roles in ensuring that organizations meet their specific goals. The skill levels for both positions are high and require a great deal of patience and experience. The purpose of this discussion is to determine whether being a financial manager is the best preparation for later becoming a CEO.
ole of the Financial Manager

According to the Bureau of Labor, financial managers must have a bachelor's degree in a field such as business administration, accounting, economics or finance. Although, as the business world becomes more competitive, organizations are requiring financial managers to have Master's degrees and a great deal of experience before they can become financial managers. The Bureau also explains that financial managers are vital to the success of any organization and their jobs involve supervising the preparation of financial reports, direct investment activities, and implement cash management strategies. As computers are increasingly used to record….

Financial Analysis
Electronic communication has increased the availability and speed at which financial information is made public. Announcements and stock prices are made available in real time. Aggregated and historical information is widely available on information aggregator sites like Yahoo Finance. Annual reports are publicly available, and securities regulators insist that they be made publicly available.

The increased availability of financial information about companies serves to improve both the transparency and liquidity of financial markets. Investors of all types and abilities now have access to the information that they need to make information decisions. That all companies must produce consistent financial statements according to GAAP also helps with the transparency of financial information. ith easy access to this information, investors can become more educated and more confident. Ultimately, this improves investor confidence in the system and liquidity in the market, improving the market's function.

Because publishing this material improves the function of capital….


Therefore, I do believe that qualitative research is necessary. The financial statements can reveal much, but there are definitely instances in which the financial statements require contextual understanding for proper interpretation. Without this understanding, the firm's numbers may only reveal raw data. Raw data can be interpreted any number of different ways, so it is essential that qualitative analysis be conducted in order to place the numbers within a framework that will make understanding easier. or example, Landry's is taking on debt, but we know from the company's statements that this is to finance expansion and that hopefully when those properties are open, the returns will begin to improve.

How the firm makes money is an important consideration. This can help to not only place past performance into perspective but also to provide greater understanding of the firm's future prospects as well. Competitive advantages can be derived sometimes from the financial….

Ford's value in 2007, was 0.01, compared to GM's value of 0.64. Comparatively, GM is using its assets in a much more efficient manner than Ford is.
V. Conclusions

oth General Motors and Ford have shown specific problems in their operational activity, as this is reflected in the financial ratios that have been analyzed. The most important problem that Ford seems to have was reflected by both the asset management and profitability ratios. Indeed, from our investigation, we were able to determine that not only Ford is not using the assets it has efficiently in order to generate higher revenues and sales for the company, but the values in 2007 were almost error-like small (0.01 in most cases).

At the same time, General Motor's asset management and profitability ratio values were somewhat higher and, generally, showed an ascending trend, but I don't think we can go as far as saying that General….

financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be issued. Specifically, the issue is whether "we" would lend Chevron 10% of its net assets. The net assets for Chevron are $209.474 billion, so the amount in question is $20.9 billion in new debt. The report will first analyze the financial statements of Chevron in general terms, focusing on trends and ratios, and drawing conclusions about the overall financial health of the company based on that analysis. The second part of the paper will outline some of the criteria that a lending institution would have for lending to a company, and then that criteria will be applied to Chevron specifically.
Chevron operates in the hydrocarbon industry, where it is one of the world's largest companies with sales of $241.9 billion and net….

financial comparison of Pepsi and Coke. The comparison of the two companies is facilitated by the use of GAAP, which means that the financial statements of the two companies are constructed, broadly, according to consistent methodologies and criteria. As a result, there should be direct comparability between the statements of these two companies.
Two main techniques will be used for this comparison. The first is horizontal analysis, where the results of the company are compared against past results from the same company. The second is vertical analysis, where the results of each company are compared on a year-over-year basis according to how the different line items are weighted. The two companies can also be compared on this basis. Horizontal analysis allows the two companies to be compared on the basis of which company is growing faster or controlling costs better. The vertical analysis allows the two companies to be compared….

financial analysis and more specifically financial ratios has been noted by Finkler, Marc and Baker (2007, p.253) to be important to managers since it can help them in making informed decisions. In this paper, we present the concept of ratio analysis as applied to healthcare facilities.
The concept and purpose of ratio analysis

Financial statement analysis is noted by Flex Monitoring Team (2005) to be very important to managers, boards, payers as well as lenders for them to effectively make the right judgments on the financial health of their organizations. atio analysis is one of the most accepted methods of assessing the financial health of an organization. The data that is used for ratio analysis is derived from income statements and balance sheets. It is a fact that most health care systems, hospitals as well as various other healthcare organizations routinely employ ratio analysis in evaluating their financial condition and then….


The article that was written by Conley (2011) discusses the impact that collateralized debt obligations (CDO's) would have upon the subprime loans. These were created in 1987, by the Wall Street firm Drexel urnham. In this product, the investment bankers would take a number of different articles and combine them together as one investment. The various assets that were used included: junk bonds, mortgages and other high yielding investments from the debt. The idea with these different products is that the investment bank could offer customers a stated return on their investment. The way it worked is the brokerage firm would distribute each investor, the stated amount of returns that they would make off of the tranche (the CDO investment). This was derived using a complex mathematical formula that would divide the total amount of interest that was received, from the various high yielding products that were inside the CDO.….

financial statements of Barnes and Noble and Borders Group for fiscal year 2009. The companies' statements provide information about their financial health, as well as discuss plans for the coming fiscal year.
The balance sheet reveals detailed information about each company's assets, liabilities and owners' equity (net worth). It is based on the accounting equation Assets = Liabilities + Stockholders' Equity; the two sections of the balance sheet must equal each other just as they do in the equation. This equation represents the basic accounting premise: assets, the means used to operate the company, are balanced by a company's financial obligations, along with the equity investment brought into the company along with its retained earnings (Investopedia, n.d.).

As both the Barnes and Noble and Borders Group statements show, there are four main financial statements:

The balance sheet, which shows what a company owns and what it owes at a fixed point in….

financial funding system for Amtrak doesn't work and what can be done about it.
Review current materials on the issue.

Amtrak is doomed to failure, even with government subsidies if it does not improve service, become more efficient and find ways to increase revenue not just rider-ship.

[Amtrak]

Congress initially created Amtrak in 1970 as a for-profit organization, offering national rail service. It was signed into existence in 1971 and to date has never produced a profit. In 1997, Congress's Amtrak Reform and Accountability Act stipulated that the rail system had to achieve operational sufficiency by the end of 2002 and prohibits Amtrak from using any federal funds for operating expenses after fiscal 2002.

Rail travel has a lot of benefits to offer passengers who do not want to endure the hassles of flying or some of the negative effects of long flights. Rail travel is more comfortable and provides more amenities than flying.….

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3 Pages
Essay

Economics

Financial Condition of a Firm

Words: 772
Length: 3 Pages
Type: Essay

Still, this is clearly indicative of the company's inability to quickly and efficiently sell its products and collect the money owed by customers. 6. Debt ratio The organization's debt ratio…

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2 Pages
Essay

Economics

Auditing and Assessing Financial Condition

Words: 642
Length: 2 Pages
Type: Essay

financial condition of a hypothetical town; Swobodaville. The paper analyzes the town's revenue structure, and expenditure profile among others. In addition, paper outlines how public organizations within this…

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3 Pages
Essay

Economics

Financial Overview Business Description Wal-Mart

Words: 782
Length: 3 Pages
Type: Essay

0 $0.0 Net income available to common stockholders $17,758.5 $16,468.7 Common dividends $5,400.0 $5,048.0 Addition to retained earnings $12,358.5 $11,420.7 Calculated Data: Operating Performance and Cash Flows 2012 2011 Net operating working capital (NOC) $1,464.0 ($2,108.0) Total operating capital $144,629.0 $136,320.0 Net Operating Profit After Taxes (NOPAT) $19,182.7 $17,926.7 Net Cash Flow…

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2 Pages
Discussion Chapter

Government

Condition vs Statement Analysis in

Words: 656
Length: 2 Pages
Type: Discussion Chapter

Ratio analysis is a useful way of gaining a snapshot of an organization. It is a transparent system of analysis reporting. These ratios can then be analyzed to identify…

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2 Pages
Essay

Economics

Financial Examination

Words: 705
Length: 2 Pages
Type: Essay

Financial Examination The overall examination of financial documents is integral to the proper functioning of government entities. For one, examinations help to prevent budgetary shortfalls that may jeopardize the economic…

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4 Pages
Term Paper

Business - Management

Financial Managers and CEO's Play Important Roles

Words: 1164
Length: 4 Pages
Type: Term Paper

Financial managers and CEO's play important roles in ensuring that organizations meet their specific goals. The skill levels for both positions are high and require a great deal of…

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5 Pages
Essay

Business

Financial Analysis Electronic Communication Has Increased the

Words: 1354
Length: 5 Pages
Type: Essay

Financial Analysis Electronic communication has increased the availability and speed at which financial information is made public. Announcements and stock prices are made available in real time. Aggregated and historical…

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3 Pages
Essay

Economics

Financial Ratios for Landry Restaurants

Words: 840
Length: 3 Pages
Type: Essay

Therefore, I do believe that qualitative research is necessary. The financial statements can reveal much, but there are definitely instances in which the financial statements require contextual understanding for…

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6 Pages
Thesis

Economics

Financial Analysis Both General Motors

Words: 1582
Length: 6 Pages
Type: Thesis

Ford's value in 2007, was 0.01, compared to GM's value of 0.64. Comparatively, GM is using its assets in a much more efficient manner than Ford is. V. Conclusions oth…

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10 Pages
Essay

Business

Financial Analysis of Chevron From the Perspective

Words: 4187
Length: 10 Pages
Type: Essay

financial analysis of Chevron from the perspective of a potential creditor. The issue surrounds primarily the creditworthiness of Chevron rather than the type of credit that would be…

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7 Pages
Essay

Accounting

Financial Comparison of Pepsi and Coke The

Words: 1873
Length: 7 Pages
Type: Essay

financial comparison of Pepsi and Coke. The comparison of the two companies is facilitated by the use of GAAP, which means that the financial statements of the two…

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3 Pages
Essay

Healthcare

Financial Analysis and More Specifically Financial Ratios

Words: 862
Length: 3 Pages
Type: Essay

financial analysis and more specifically financial ratios has been noted by Finkler, Marc and Baker (2007, p.253) to be important to managers since it can help them in…

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30 Pages
Dissertation

Economics

Financial Derivatives on Sub-Prime Crisis

Words: 9921
Length: 30 Pages
Type: Dissertation

The article that was written by Conley (2011) discusses the impact that collateralized debt obligations (CDO's) would have upon the subprime loans. These were created in 1987, by the…

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2 Pages
Essay

Accounting

Financial Statements of Barnes and Noble and

Words: 647
Length: 2 Pages
Type: Essay

financial statements of Barnes and Noble and Borders Group for fiscal year 2009. The companies' statements provide information about their financial health, as well as discuss plans for…

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4 Pages
Term Paper

Transportation

Financial Funding System for Amtrak Doesn't Work

Words: 1269
Length: 4 Pages
Type: Term Paper

financial funding system for Amtrak doesn't work and what can be done about it. Review current materials on the issue. Amtrak is doomed to failure, even with government subsidies if…

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