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What should it do to judge performance and a firm financial position?

خدمة الموضفين او العمال بالمؤسسة مثال اسناد الاعداد الترقية اسناد الاجور استخراج العطل شهائد مدرسية منح ابناء الاعوان الى غير ذلك من خدمات ادارية

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Question added by yousfi khawla , مساعد إدارة , Société tunisienne de l'électricité et du gaz (الشركة التونسية للكهرباء و الغاز) ou STEG
Date Posted: 2014/03/06
yousfi khawla
by yousfi khawla , مساعد إدارة , Société tunisienne de l'électricité et du gaz (الشركة التونسية للكهرباء و الغاز) ou STEG

theformulationof ajudgmentontheperformanceandafirmfinancialpositionrequiresacomparisonwith reference values

Rajesh Pandey
by Rajesh Pandey , Finance Head , Travel Point LLC & Travel City LLC (Group)

financial statements" the balance sheet, the income statement and the cash flow statement. The balance sheet shows you the firm's assets and debts; the income statement shows you how well the firm increased sales and minimized expenses; and the cash flow statement shows you how the company generated and/or used cash throughout the year.

My favorite tools make up a set of simple but powerful indicators derived from line items you can find in every company's financial statements.  I'll show you how to calculate and interpret these indicators, and then I'll highlight five healthy companies that met my criteria.

Here are my favorite financial characteristics of a healthy company:

Profit margins on operations (operating margins) are rising and higher than the industry average.

operating margin is calculated by dividing operating earnings by total sales. Both of these line items are found on the income statement.

Operating margin paints a picture of the ongoing profitability of a company’s business operations. Healthy profit margins reflect a strong market position and an efficient process. Look for profit margins within10 percent of their record highs.

Healthy free (or excess) cash flow.

Free cash flow (FCF) is calculated by subtracting capital expenditures from operating cash flow.  Both of these line items are found on the cash flow statement.   FCF can be thought of as the excess money available to the company after it invests in itself.  A healthy company will almost always generate positive net cash flow, even in years when profits are terrible.

Demonstrated earnings growth.

You can calculate how fast earnings are growing with this formula: ( today's earnings - last quarter's earnings ) / last quarter's earnings. Earnings are found on the income statement.

Looking at a firm's past earnings performance can give you an indication of how it copes during recessions. Preferably, management was able to grow quarterly earnings even during economic downturns. A reasonable price-to-earnings ratio (P/E).

Look at the company’s projected earnings per share for the next12 months. Divide this by the current stock price per share. In most cases, the P/E shouldn’t exceed the stock's earnings growth rate by more than25 percent.

Now, here’s a list of five great companies that passed our rigorous metrics: relatively high profit margins, plenty of Free cash flow, demonstrated quarterly earnings growth and a reasonable P/E ratio

Dasarathi Rath
by Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

To Judge the performance of the firm Financial Position crises is here...

1.Financial Analysic and Planning

2.Management of working capital

3.Investment Dececion- Capital Budgeting

4.Financing Deceion

Faisal Shahzad
by Faisal Shahzad , Branch Operation Manager , Al Baraka Bank (Pakistan) Limited

The firm sales volume, Income Statement, Balance sheet, cash flow statement, apply financial ratios.

 

Menerva Melad
by Menerva Melad , Account Executive, Key Accounts , Graphic Home Company

financial statements" the balance sheet, the income statement and the cash flow statement. The balance sheet shows you the firm's assets and debts; the income statement shows you how well the firm increased sales and minimized expenses; and the cash flow statement shows you how the company generated and/or used cash throughout the year.

My favorite tools make up a set of simple but powerful indicators derived from line items you can find in every company's financial statements.  I'll show you how to calculate and interpret these indicators, and then I'll highlight five healthy companies that met my criteria.

Muhammad Ali
by Muhammad Ali , Sr. Accountant , Construct

Statement of Financial Position (Balance Sheeet) presents the Financial position of a company.

Statement of Comprehensive income (Imcome Statement) presents the Financial Performance of a company.

Statement of Cash flow presents company performance based on Cash flow.

Different General and industry specific indicators are used to measure Financial performance and assess Financial position of company.

General Ratios are listed here but these need to be analysed carefully to explain true picture of company

For ratio analysis you need to analyse data in comparison to relvant perionds, Competitor and industry averages.

But rather than ratio analyses other non financial performance indicators should be analysed to reach a conclusion,

An example is Balance Scorecard to assess company performance and position.

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