StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Business and Management - Essay Example

Cite this document
Summary
Ratios of the year 2008 and 2009 and the percentage of changes have been exhibited in the above table but to analyze the financial health of the company, it is required to conduct a comparative study between the industry average and the company.
Based on the given ratios of…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
Business and Management
Read Text Preview

Extract of sample "Business and Management"

Download file to see previous pages

is reveals that instead of having loads of weaknesses, the organization gained higher profits in comparison to the previous year and industry average. Increment in the sales volume and sales amount had the highest contribution to make this possible. Effective cost management can also be considered as the contributing factor. Lower Gearing Ratio: Basically gearing ratio indicates the relationship between the equity capital and debt. The reason behind calculating this ratio is to determine the long term financial position of the firm and risk factor associated with the organization.

Gearing ratio reveals the sustainability of capitalization of the organization. In that case, it can be concluded that being comparatively low geared in comparison to the industry, the company has a scope of taking more debt. Lower Acid Test Ratio: Acid test ratio is more important than the current ratio as CR does not consider value of inventory. Therefore, it can be assumed that acid test ratio indicates more accurate financial position of the organization than the current ratio. Basically according to the rule of thumb, the standard ratio is perceived to be 1 for this particular ratio but it is quite lower in this case.

Even the acid test ratio of the company of 2009 is not only lower than 2008 but also from the industry average. Therefore it can be considered as the weakness for the company. Here it is important to mention that there is huge difference in the result of the two years. There is a 57.59% fall in acid test ratio in the year of 2009 when compared with 2008. Zero bank balance can be blamed for this significant change. Again in 2008, there was no bank overdraft, which again had the contribution to enhance the acid test ratio.

A lower liquidity ratio refers that the financial position of the company is not sound enough to meet the current obligation immediately. Lower Current Ratio: The current ratio of the organization in the year 2009 is 1.15 and it refers that current

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business and Management Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Business and Management Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/miscellaneous/1573767-business-and-management
(Business and Management Essay Example | Topics and Well Written Essays - 3000 Words)
Business and Management Essay Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/miscellaneous/1573767-business-and-management.
“Business and Management Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/miscellaneous/1573767-business-and-management.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business and Management

Business and Management Research Methods

This assignment "Business and Management Research Methods" shows that the research focused on identifying crucial media factors that influence consumer behavior on online shopping.... The four key dimensions were evaluated as impinging on online shopping behavior.... hellip; The purpose of this essay is to review and summarize the article, and to include some definitions and preferably challenging research questions in the field....
4 Pages (1000 words) Assignment

Economics for Business and Management

Name of student: Topic: Lecturer: Date of Presentation: Q1 (a): Arguments in Favour of Free Market System of Resource Allocation A free market system is whereby resource allocation is determined by price mechanism.... There are four actors in this system namely; consumers, producers, owners of factors of production, and the government and each actor is inspired to act by self interest (Anderton, 2000)....
11 Pages (2750 words) Essay

Economics for Business and Management

Question 1 (Explain why the introduction of a minimum price above the equilibrium price reduces social welfare) Demand curve of an economy combines all the quantities of goods which a consumer is willing to purchase at a given price.... Since consumers derive satisfaction from consuming good so, it can also be stated that market demand curve sums up the social benefit and welfare of the people and society for a specific good....
4 Pages (1000 words) Essay

Carbon Price and Pollution Levels

ECONOMICS FOR Business and Management By Instructor Institution Location Date Contents Contents 1 TASK A 2 Will the new carbon price results to decrease in pollution levels?... These hardships prompted poor business performance as well as low household confidence; hence damage reducing the demand for products that are made from tin, such as solder and electrical items....
7 Pages (1750 words) Essay

Business and Management Research Methodology

In this section we present a summary list of requirements expected of a candidate setting out to conduct a research study in business management.... The list would include essentially the following: i.... a definition of the clear purpose for the research; formulating a set of questions to guide it; and providing a justification for the choice of topic; ii....
13 Pages (3250 words) Essay

Business and management studies

The effects of linkage between business and human resource management strategies, Personal Review, 30 (1/2), 132-151.... For the last twenty years an increasing concern in explaining the effect of Human Resource management strategies on the government… Therefore main goal of organizations is to last.... For the last twenty years an increasing concern in explaining the effect of Human Resource management strategies on the government organizations accomplishment has evolved within the human resource research (Bratton, Gold 2007)....
2 Pages (500 words) Thesis

Introduction to Business and Management

eing a multinational business, Tesco should use online and social media recruitment as its key external recruitment method and emails as internal recruitment methods.... According to the current paper, human resource departments represent one of the departments that an organization cannot function without....
6 Pages (1500 words) Assignment

BSc Maritime Business and Management

This kind of essay called "BSc Maritime Business and Management" describes the studies of Science Maritime Business and Management.... Therefore, by studying the Bachelor of Science Maritime Business and Management, I believe I am going to gain better insight into the industry; better skills and knowledge on how the Maritime industry operates and what requirements and skills are required of me to become an operation manager in one of the ports and terminals in my country and business person....
5 Pages (1250 words) Admission/Application Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us