Preview

proposal

Powerful Essays
Open Document
Open Document
3765 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
proposal
Chapter 1 Introduction
1.1 Background of the Study:
Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm 's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. There are many different ways to measure financial performance, but all measures should be taken in aggregation. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt.
The main objective of financial analysis is to know company or industry’s financial status, its debt, revenue, expenditure, equity, share price, segmental revenue expenditures etc. With Financial analysis we can know the present company or industry sector status and we can expect its future.
Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long term forecasting and growth can be identified with the help of financial performance analysis. Financial analysis determines a company 's health and stability. The data gives you an intuitive understanding of how the company conducts business. Stockholders can find out how management employs resources and whether they use them properly. Governments and regulatory authorities use financial statements to determine the legality of a company 's fiscal decisions and whether the firm is following correct accounting procedures. Finally, government agencies, such as the Internal



References: Gitman, L. J. (2009), Principles of Managerial Finance, 12th Edition, Pearson, Singapore. Foster,G (2011), Financial performance Analysis, 11th Edition, Pearson , Singapore Report: Annual Report of Beximco Pharmaceuticals limited (2009-13) Website:

You May Also Find These Documents Helpful

  • Good Essays

    JET Task 1

    • 3064 Words
    • 13 Pages

    Financial analysis is the process of evaluating a business’s liquidity, viability, stability, and profitability. It is typically used during audits, to determine if a business is suitable to be invested in, comparison to other companies, and to analyze overall financial status. The typical items reviewed during financial analysis are income statements, balance sheet, and cash flow statements. Once the documents have been reviewed a report is formed and presented to management for decision making purposes.…

    • 3064 Words
    • 13 Pages
    Good Essays
  • Good Essays

    A financial statement analysis is the process of using data contained in a business’s financial statements to make judgments about financial condition. There are three basic financial statements: the income statement, the balance sheet, and the statement of cash flows. These statements show the firm’s operations and its financial position. The data obtained is detailed for two or three most recent periods, and a historical summary of key operating statistics for longer periods are included. Financial statement analysis is applied to historical data, which reflect the results of past managerial decisions and…

    • 728 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Acc/291 Weekly Reflection

    • 305 Words
    • 2 Pages

    Financial statements are prepared to meet internal and external reporting obligations, mainly for decision making purposes. Financial statement analysis is the process of identifying financial strengths and weaknesses of the company by establishing relationships between financial statements. Such analysis shows changes between years in both dollar and percentage forms. Analyzing financial statements involves evaluating three characteristics: a company's liquidity, profitability, and solvency.…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Cango Financial

    • 1115 Words
    • 5 Pages

    The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…

    • 1115 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Lowe's Research Paper

    • 5203 Words
    • 21 Pages

    Financial analysis is used to assess the financial stability of a company. Creditors are interested in the short-term liquidity of a company and whether the company can repay its debts on time. So creditors use financial statements to determine whether a company is creditworthy. Stockholders are interested with future earning and dividend payouts and use the financial statements to determine whether a company is worth investing in. Creditors and stockholders seek prior and current financial information on prospective companies before entering a business relationship with them. The information obtained from financial statements will give a quick snapshot of whether the company is financially stable.…

    • 5203 Words
    • 21 Pages
    Powerful Essays
  • Better Essays

    It is important for every internal and external stakeholder in a company to understand if a company is being profitable or not. A company that is failing or not growing can often come from poor financial planning and analysis. The difference between failure and success come from analyzing financial information. Analyzing financial information such as balance sheet, income statement and cash flow statement companies can predict and control their future. Financial statements are the primary documents used in reporting financial information to banks, investors, suppliers and others. Along with financial information, financial ratios can help stakeholders evaluate the business performance. They can deliver a better understanding of a variety of things going on in the company. Financial information and ratios are important tools to help predict the growth of a company and to compare them to other companies.…

    • 2269 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Web Search 2

    • 739 Words
    • 3 Pages

    1. What is the purpose of financial statement analysis? The purpose of financial statement analysis is to provide information used by the business, potential creditors and investors.…

    • 739 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The primary principle of the financial statement analysis is to examine the accounting books for the accountability of review each year-end for profit or loss in a company to be review by the stockholders. Team A will review the financial statement analysis of two American companies; United Parcel Service (UPS) a service, Talbots (TLB) a retailer, and an International company Toyota (TMC) a manufacturer of automobiles. Each of these American companies has shares of stock on the New York Stock exchange and the International Company on the Tokyo Stock Exchange.…

    • 1319 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    The purpose of the financial analysis is to evaluate the financial stability of an organization. The analysis can help identify areas for possible improvement, and areas of strengths that will enhance or compliment the strategic plan of the organization. Investors as well as regulatory commissions and government agencies utilize Financial Ratios to obtain a perspective on the performance of a company when compared to its competitors over a period of time. Basically,…

    • 1011 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Method Analysis

    • 945 Words
    • 4 Pages

    The financial statement analysis process includes establishing the goal or goals that the analysis is supposed to achieve which helps draw the analyst's attention to the most relevant information. Typical general goals include screening, diagnosis, forecasting, and reconstruction. A full review of the financial statements and the notes produces a rounded view of the company and may call attention to specific areas that should be analyzed in…

    • 945 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Final Analysis

    • 906 Words
    • 4 Pages

    Financial analysis has an important role in the changing economic environment. It helps in understanding of the correctness and efficiency of the use of financial resources in generating company earnings. It gives company’s an opportunity to evaluate its financial operations and market position, to identify possible risk, to notice mistakes and make plans for the future. The evaluation of a company’s financial position and operating efficiency can be regarded as part of financial policy. With that being said, a skillful management of resources must be based on the results of financial analysis.…

    • 906 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Proposal

    • 522 Words
    • 2 Pages

    At Eastern Connecticut State University, Non-athlete students should have the right to use the gym whenever they choose to. Being restricted to something that your money is going towards isn’t right. Perhaps building another gym or creating extra space inside and making it a larger gym can be good for non-athlete students. Not only will it be a good improvement for students but it will also create a happier environment around campus. One side of the gym can be for student athletes and the other can be for non-student athletes.…

    • 522 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Proposal

    • 429 Words
    • 2 Pages

    Plenty of students that are struggling with their grades are intelligent and hard working. They get high grades on tests, class work, homework, etc., but those low grades significantly hurt their overall grade. I know I have had my fair share of low grades in the past and I know how that feels. So I am here to make a modest proposal.…

    • 429 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Proposal

    • 1108 Words
    • 5 Pages

    Nurul Azlina M. (2005) Study on Important Parameters Affecting the Hydrodistillation for Ginger Oil Production, Master Thesis, Universiti Teknologi Malaysia, Malaysia.…

    • 1108 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Proposal

    • 2438 Words
    • 11 Pages

    At any point in time, thousands of events are happening globally, with millions of guests travelling to and from different locations around the world. Events are organised in numerous places all over the globe thereby affecting every metropolitan city in the world. The Event industry has been leaving a heavy ecological footprint in its wake. The fact is, it generates a lot of money, but it also leaves a lot of waste. Nevertheless, it is perfectly situated to have an extraordinary impact by planning events with environmental awareness in mind i.e. by greening up their choices. Green planning is a responsible way of doing business that includes energy conservation, minimizing consumption of natural resources, reducing waste, reusing resources, recycling, and using earth-friendly products. Green events are not mainstream yet but are evolving and planners, venues, suppliers and participants are taking action by following green practices and implementing more environmentally friendly processes and programs.…

    • 2438 Words
    • 11 Pages
    Powerful Essays