scholarly journals Topics In Finance Part II - Financial Analysis

2010 ◽  
Vol 3 (3) ◽  
pp. 81-88
Author(s):  
Judy Laux
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Financial Statement ◽  
Managerial Behavior ◽  
Financial Statement Analysis ◽  
Stock Valuation

The second article in a series designed to supplement the introductory financial management course, this essay addresses financial statement analysis, including its impact on stock valuation, disclosure, and managerial behavior.

Assessment of Financial Performance of Agricultural Cooperative Unions: The Case of West Harerghe Zone, Oromia Region, Ethiopia

2020 ◽  
Vol 8 (9) ◽  
pp. 86-104
Author(s):  
Buta Debela Bonsa ◽  
Kerima Rahmeto Ebrahim
Keyword(s):  
Financial Performance ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Free Cash Flow ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Agricultural Cooperative ◽  
Secondary Sources ◽  
Current Asset ◽  
Asset Turnover

Financial statement analysis involves comparing cooperative union performance and evaluating trends in the unions’ financial position over time. Managers use financial statement analysis to identify situations demanding attention; potential lenders use financial analysis to determine whether the union is creditworthy; and stockholders use financial analysis to help predict future earnings, dividends, and free cash flow.  This study is conducted on Assessment of Financial performance of Agricultural Cooperative unions: the Case of West Harerghe zone, Oromia region, Ethiopia. The general objective of this study was to evaluate financial performance of agricultural cooperative union. For this study, the researchers used both primary and secondary sources of data taken from purposively selected two cooperative unions (i.e. Burka Galeti and Chercher Oda bultum) since they do have audited financial statements out of five unions found in western Haraghe. The study also used FGD and interview with fiancé managers and employees of the union for further explanation. Based on the financial statement analysis the researchers found that the agricultural cooperatives are efficient and effective in asset utilization, activity and debt equity management ratios. However, the financial statement analysis showed that the current asset ratio is below the industry standard   that cannot cover its short term liabilities form its current asset section of the balance sheet. Moreover, the profitability ratio of the unions revealed that the agricultural cooperative unions are efficient to make profit but the margin of profit is below 25% that cannot make the union successful to cover all the incidental costs that are borne within short and long-term periods. The OLS model revealed that quick, fixed asset turnover, total asset turnover, inventory turnover and gross profit margin ratios are significantly and positively affecting ROA. As a result, the researchers recommend that the agricultural cooperative unions are expected to improve its effective and efficient management of the day to day activities of the union. Furthermore, the unions are expected to higher managers who have the caliber to manage each and every activities of the union and who are visionary to bring success for the unions.

The Use Of Altman Equation For Bankruptcy Prediction In An Industrial Firm (Case Study)

2011 ◽  
Vol 7 (7) ◽  
Author(s):  
Khalid Al- Rawi ◽  
Raj Kiani ◽  
Rishma R Vedd
Keyword(s):  
Durable Goods ◽  
Financial Analysis ◽  
Bankruptcy Prediction ◽  
Financial Statement ◽  
Z Score ◽  
Financial Statement Analysis ◽  
Future Performance ◽  
Score Analysis ◽  
Study Results ◽  
The Given

Financial analysis provides the basis for understanding and evaluating the results of business operations and explaining how well a business is doing. In addition, the financial statement analysis can help creditors, investors, and managers answer the following questions: Can the company pay the interest and principal on its debt? Does the company reply too much on non-owner financing? Does the company earn an acceptable return on invested capital? Is the gross profit margin growing or shrinking? Does the company effectively use non-owner financing? Are costs under control? Is the companys market growing or shrinking? Do observed changes reflect opportunities or threats? Is the allocation of investment across different assets too high or too low? Furthermore, financial statement analysis reduces our reliance on hunches, guesses, and intuition. Above all, it reduces risk and/or uncertainty in decision making. Therefore, to reduce risk, uncertainty, and avoid bankruptcy one must appreciate the usefulness of financial statement analysis by using some tools and techniques to evaluate and project the future performance of the firm within a given industry.The researchers used the Altman z-score analysis to predict a firms insolvency. The study results for the period 2002-2004 indicated the weaknesses of Jordan Establishment for Marketing Durable goods. The z-score from the analysis (for the given period) was less than 1.81 (z-score <1.81).Evidence suggests that the firm has increased its debt and will be facing bankruptcy in the near future. In liquidity ratios, the percentage of the working capital is less than 1, indicating an increase in liabilities over assets. Leverage ratios increased from 41.7% to 56.7%, while inventory turnover decreased by 1.2 times through the given period. Net profit to total sales reduced from (1.3) to (1.8) for the same period. Also, the assets return percentage declined from (-9.29%) to (-10.3%), while the stock book value declined from (0.95) JD to (0.67) JD through the given period. The main features provide a gloomy picture and indicate inefficiencies within the firm.

Diamond Foods, Inc.: A Comprehensive Case in Financial Analysis and Valuation

2018 ◽  
Vol 34 (1) ◽  
pp. 13-33
Author(s):  
Mahendra R. Gujarathi
Keyword(s):  
Real World ◽  
Financial Analysis ◽  
Real Earnings Management ◽  
Financial Statement ◽  
Stock Valuation ◽  
Financial Analyst ◽  
Problem Solving Skills ◽  
Holistic Understanding ◽  
Available Information

ABSTRACT This real-world comprehensive case provides an experiential assignment to bring alive most major topics addressed in the financial statement analysis and valuation course. By demonstrating the interconnections between different topics, the case also serves as an integrative assignment to develop a holistic understanding of the course. The case presents a platform to develop students' critical-thinking and problem-solving skills. By requiring them to apply the frameworks of strategy and industry analysis, techniques of accounting and financial analysis, and by placing them in the role of a financial analyst, the case develops an understanding of the challenges involved in financial analysis and valuation in a real-world context. The case helps students to experience the power of using financial statements and other publicly available information to derive insights into firm valuation and to appreciate the role of accruals-based and real earnings management in stock valuation.

scholarly journals Innovación en el proceso de enseñanza-aprendizaje por competencias de la asignatura Análisis de Estados Financieros / Innovation in the teaching-learning process by competencies of the subject Financial Statement Analysis

2015 ◽  
Vol 11 (22) ◽  
pp. 33-44
Author(s):  
Gisela, León, ◽  
Rossanna Crespo
Keyword(s):  
Action Research ◽  
Learning Process ◽  
Financial Analysis ◽  
Financial Statement ◽  
Educational Model ◽  
Financial Statement Analysis ◽  
Construction Of Knowledge ◽  
Comprehensive Education ◽  
The Subject ◽  
Teaching Learning

ResumenLa innovación en el proceso de desarrollo curricular por competencias de la asignatura Análisis de Estados Financieros fue desarrollada en el contexto de la Especialidad en Pedagogía. Con esta perspectiva, hemos elaborado un programa de la asignatura basado en los lineamientos del Modelo Educativo de la PUCMM (2011) y los lineamientos internacionales sobre el Análisis Financiero en función del perfil de egreso de los gestores financieros. Los resultados obtenidos muestran que enfocar la enseñanza por competencias se apoya en una formación integral del estudiante más allá de los contenidos disciplinares, pues promueven la construcción de conocimientos a través de una participación activa en su proceso de enseñanza aprendizaje.AbstractInnovation in the process of curriculum development competencies of the course Financial Statement Analysis was developed in the context of the Specialty in pedagogy. With this in mind, we have developed a course syllabus based on the guidelines of the educational model of the PUCMM (2011) and international guidelines on Financial Analysis by graduate profile of financial managers. The results show that teaching competency focus is supported by a student comprehensive education, beyond the disciplinary content, because they promote the construction of knowledge through active participation in the teaching-learning process. Action-research was used in the investigation. 

В работе изложен финансовый механизм бюджетных организаций, рассмотрена правовая среда финансовой деятельности бюджетных организаций, регламент финансового планирования, представлена методика финансового анализа бюджетных организаций, сформирована совокупность ключевых показателей оценки эффективности деятельности бюджетных организаций, изложены основные положения организации финансовой деятельности бюджетных организаций. Выводы иллюстрируются практическими расчетами.

2017 ◽  
Author(s):  
Шубина ◽  
Tatiana Shubina
Keyword(s):  
Financial Planning ◽  
Financial Management ◽  
Financial Analysis ◽  
Financial Statement ◽  
Management Performance ◽  
Unique System ◽  
Budgetary Institutions ◽  
Planning Methods ◽  
Financial Mechanism

This book provides a survey about budgetary organizations’ financial mechanism, provided by Russian reform in 2010. Such features like legislation, financial planning, methods of financial analysis were investigated. Authors created an unique system of kea performance items considering those features and provided methods of estimating the quality of budgetary institutions’ financial management performance. The results are approved by actual financial statement valuations.

scholarly journals A Case Study: Using The Dupont Approach For Formulating Managerial Decisions

2016 ◽  
Vol 13 (1) ◽  
pp. 33-42
Author(s):  
Susan Wright
Keyword(s):  
Decision Making ◽  
Financial Management ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Managerial Decisions ◽  
Dupont Analysis ◽  
Unique Approach ◽  
World Information

This case introduces a unique approach to financial statement analysis that centers on managerial decision-making as the locus for student analysis. Rather than grouping ratios into traditional categories, such as liquidity, asset efficiency, profitability, insolvency and market ratios, ratios are grouped into operating, investing and financing decision-making areas. Students deepen their understanding of a firm’s strengths and weaknesses through a process of “drilling-down” into the three decision-making domains. The analysis begins with an examination of ROE using the Dupont analysis which provides a useful framework for focusing on the three core managerial decision making activities.  The case is constructed using real world information extracted from 10K reports and from recent company announcements. It can be used at the undergraduate (400) or graduate level. It is most suitable for a course in Financial Statement Analysis, or a course in Corporate Financial Management/Corporate Finance. The basics of financial statement analysis are necessary to successfully navigate the case.

scholarly journals Financial Analysis of Finance Companies in Pokhara: A Comparative Study of Pokhara Finance Ltd. and Annapurna Finance Company Ltd.

2006 ◽  
Vol 1 (1) ◽  
pp. 101-106
Author(s):  
Krishna Prasad Upadhyay
Keyword(s):  
Comparative Study ◽  
Financial Performance ◽  
Financial Analysis ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Business Studies ◽  
Competitive Strength ◽  
Finance Company

Every business entity should be able to enhance their competitive strength through achieving the financial goals. Financial statement analysis should be adopted to appraise the financial performance of the concerned companies. Information and results obtained from financial analysis are important to all stakeholders. Interest of the different stakeholders is conflicting. Out of different stakeholders, managements of the companies worry about their financial performance. So, in this paper, an attempt to analyze the financial performance of Pokhara Finance Company and Annapurna Finance Company has been made. Journal of Nepalese Business Studies Vol.1(1) 2004 pp.101-106

scholarly journals Estudio de los estados financieros en industrias agroalimentarias. / Financial statement analysis on the agrifood industry.

2020 ◽  
pp. 35-50
Author(s):  
Núria Arimany Serrat ◽  
Alejandra Aramayo García ◽  
Cara De Uribe Gil ◽  
Anna Sabata Aliberch
Keyword(s):  
Food Industry ◽  
Financial Analysis ◽  
Cash Flows ◽  
Financial Economic ◽  
Economic Indicators ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Short And Long Term

Este trabajo realiza un diagnóstico de la salud económica financiera de las empresas cárnicas catalanas en el período 2007-2011 por ser un sector estratégico dentro de la agroalimentación, considerada primer clúster agroalimentario de Europa según el observatorio de clústers Stockholm School of Economics. El estudio posiciona estas industrias dentro del sector agroalimentario español y presenta los principales indicadores económicos financieros de las empresas objeto de estudio mediante un análisis a corto y largo plazo, de los resultados, de los cambios patrimoniales y de sus flujos de efectivo. ABSTRACT:  This paper provides an economic and financial analysis of the Catalonian meat companies in the period 2007-2011, as a strategic agrofood sector and considered the first cluster in Europe by the Observatory of Stockholm School of Economics. The study ranks these companies within the Spanish food industry and it presents the main financial economic indicators of the companies under study by examining, short and long term, the results, changes in equity and its cash flows.

Sign in / Sign up

Export Citation Format

Share Document