scholarly journals Evaluation of business efficiency of a selected forestry company from the South Backa District area

2021 ◽  
pp. 25-44
Author(s):  
Ljiljana Keca ◽  
Ilijana Blanusa ◽  
Milica Marceta
Keyword(s):  
Cost Effectiveness ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Indicators ◽  
The South ◽  
Productivity Cost ◽  
Business Operations ◽  
Income Statement ◽  
Business Efficiency ◽  
The Subject

The paper evaluates the efficiency of a forestry company, which operates in the territory of South Backa District. For this purpose, an analysis of financial indicators of operations, i.e., liquidity, indebtedness and solvency was performed. After that, the movement of basic indicators of business efficiency is shown: productivity, cost-effectiveness, and profitability. The aim of the research is to conduct a financial analysis of the business of the analyzed company. The purpose of the research is to identify problem areas in the business operations of the company within the South Backa District, as well as to eliminate them. The subject of the research are: balance sheet and income statement of the selected company. The period taken into consideration is 2016, 2017 and 2018.

scholarly journals The Impact of Inventory Valuation Methods on Corporate Financial Reports.

2016 ◽  
Vol 12 (3) ◽  
pp. 125-134
Author(s):  
A. Bruce Caster ◽  
Wanda K. Causseaux
Keyword(s):  
Learning Outcomes ◽  
Business Students ◽  
Balance Sheet ◽  
Financial Statement ◽  
Financial Indicators ◽  
Hypothetical Case ◽  
Financial Reports ◽  
Income Statement ◽  
The Impact

Business students are generally introduced to LIFO and FIFO in their first accounting course. However, that introduction generally focuses exclusively on computing ending inventory and cost of goods sold.  Students are rarely challenged to compute or analyze the impacts of LIFO and FIFO on the income statement, balance sheet, or cash flow statement.  This paper presents a hypothetical case designed to provide a framework within which students can compute, analyze, and discuss the financial statement impacts and economic impacts of choosing one or the other of these accounting methods.  The questions in this case also address the effects of this choice on financial indicators like liquidity ratios, the impacts of each method on quality of earnings, and the potential impacts of IFRS convergence on companies that are currently using LIFO.One important feature of this case is its adaptability to support a variety of learning outcomes in different courses.  This flexibility results from making the questions posed in the case as independent of each other as possible.  That independence allows a professor to select only the questions that support the learning outcomes for that professor’s specific course.  The teaching notes discuss in detail possible course applications and uses of this case.

scholarly journals Financial Analysis of the State Forestry Organizations: Example of Turkey

2021 ◽  
pp. 34-47
Author(s):  
Ufuk Demirci
Keyword(s):  
Financial Analysis ◽  
Balance Sheet ◽  
The State ◽  
Positive Development ◽  
Steady Increase ◽  
Positive Trend ◽  
Ratio Analysis ◽  
Forestry Sector ◽  
Income Statement ◽  
The Given

In countries where the state is the main owner of the forest resources, forestry activities are carried out with allocated shares from government budget resources. In order to ensure effective and efficient use of financial resources and determine whether forestry goals and targets are achieved, it is necessary to perform financial analysis of public forestry institutions. In Turkey, where the state owns majority of forests, the General Directorate of Forestry (GDF) is the main responsible institution for the management of the forestry sector. This study aimed to make financial statement analysis of working capital budget of the GDF, by applying horizontal analysis, vertical analysis, trend analysis and ratio analysis. In this context, balance sheet and income statement of GDF for the period of 2015-2019 are analyzed. It is determined that in the given period, due to increase in “trade receivables”, “other receivables” and “inventories” accounts, total current assets have shown a positive trend. Also there is a steady increase in the equity, which can be considered as a positive development for the GDF. Gross sales and net sales amount doubled in the given period and, by keeping cost of sales and operating expenses under control, net profit of the GDF showed significant increase especially in last three years. Moreover, ratio analysis results revealed that GDF has capacity to satisfy its current and long-term liabilities and increased its profitability in the mentioned period.

scholarly journals Financial Analysis as a Basis for Creation of the Financial Plan of the Selected Business Entity – Case Study

2021 ◽  
Vol 92 ◽  
pp. 03027
Author(s):  
Pavol Skocdopole
Keyword(s):  
Planning Process ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Value Added ◽  
Sources Of Information ◽  
Financial Reports ◽  
Analysis Process ◽  
Income Statement ◽  
The Status ◽  
The Individual

Research background: Authors mentioned in the Research describe a financial analysis as first step of a financial planning process. It is an effective tool in the evaluation of a company’s financial efficiency on the basis of data from financial reports, where the individual data are sorted, aggregated and measured. The analysis usually consists liquidity, activity, profitability indicators and debt ratios. The result of the analysis should evaluate financial health and subsequently predict future of the focused company. Purpose of the article: The scope of this article is a practical application of financial analysis of the company. The main sources of information include financial statements balance sheet and income statement over the period of the last 3 years. Other sources are information obtained from employees of the company and information gained by studying a literature. Methods: The analysis process begins by identifying the main objectives and targets, continues by the methodical procedure, analysis of indicators and an interpretation of the analysis results. The main objective of the analysis is to evaluate the assets, the sources and the overall economic situation of the company. The key indicators that are the status and development of current and non-current assets, the status and development of equity and liabilities and a profit development. Findings & Value added: The financial analysis of a focused company was applied for the last 3-year time period. The worst status of the indicators occurred in the second year and after the subsequent intervention of the company management the result improved to sustainable status.

scholarly journals Methodology of cash flows analysis

2021 ◽  
Vol 16 (1) ◽  
pp. 27-47
Author(s):  
Miloš Pavlović ◽  
Čedomir Gligorić ◽  
Jana Cvijić-Rodić
Keyword(s):  
Decision Making ◽  
Balance Sheet ◽  
Accounting Information ◽  
Cash Flows ◽  
Financial Information ◽  
Income Statement ◽  
Report Analysis ◽  
The Subject ◽  
Accounting Period ◽  
Statement Of Cash Flows

Cash flows are one of the main indicators of liquidity and solvency of the company. In practice, the Statement of cash flows is very often done as "following document" to Balance sheet and Income statement. This is wrong. The statement of cash flows can give the information to its users about the ability of the company to make cash. The balance sheet and Income statement, due to their accrual basis, are not saying anything about the cash flows of the accounting period, and that is why the Statement of cash flows is very important. A good analysis of this statement can be the basis and support to the process of decision making both for internal and external users of financial information. In this paper we are presenting the methodology of the Statement of cash flows report analysis. The subject of this paper is the analysis of the Cash Flow Statement. The aim of this paper is to point out the importance of reporting on cash flows and its information capabilities to users of accounting information.

scholarly journals ANALISIS KINERJA KEUANGAN LEMBAGA PERKREDITAN DESA ADAT BANGKANG BAKTISERAGA MENGGUNAKAN ANALISIS DU PONT

2019 ◽  
Vol 14 (2) ◽  
Author(s):  
Putri Anggreni
Keyword(s):  
Financial Performance ◽  
Performance Appraisal ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Good Health ◽  
Financial Statements ◽  
Return On Equity ◽  
Future Performance ◽  
Income Statement ◽  
Credit Institutions

The management is required to always introspect condition of the company, especially in terms of financialnya, because it holds the key to life and death of the company. The condition that the  company should always be monitored, can be done by analyzing the financial statements themselves, which generally consist of a balance sheet and income statement. Through the analysis of the financial statements can be found successful achievement of achievement demonstrated by the absence of a healthy financial statements, which is the basis of performance appraisal or part of the existing work in the company.Used in this study to analyze the financial statements is Du Pont, aims to determine the state of Indigenous Village Credit Institutions Bangkang Baktiseraga which was done by measuring the financial performance. Analysis of Du Pont is one of the techniques that are thorough financial analysis, management can determine the level of efficiency of capital use. Financial performance results obtained from the calculation of Return on Assets and Return on Equity from year to year decline, but is still in good health as above average standard of Bank Indonesia. Village Credit Institutions should determine the condition of future performance in order to be a better performance than the previous year and the profit achieved will also be maximized. Key words: Financial Performance, LPD, ROA, ROE, Du Pont Analysis

scholarly journals Análisis Contable y Financiero: Una Herramienta Clave Para La Eficiente Gestión Financiera Y Contable En La Empresa/Accounting and Financial Analysis: A Key Tool for Efficient Financial and Accounting Management in the Company

2020 ◽  
Author(s):  
B. Riera Riera ◽  
N. Alarcón Muñoz ◽  
N. Jiménez Zavala ◽  
J. Cevallos Vallejo
Keyword(s):  
Financial Analysis ◽  
Flow Analysis ◽  
Balance Sheet ◽  
Cash Flows ◽  
Share Price ◽  
Accounting Performance ◽  
Income Statement ◽  
Scope Of Application ◽  
Para Determinar ◽  
Statement Of Cash Flows

El análisis financiero y contable es fundamental para evaluar el rendimiento real económico, financiero y contable de una empresa, detectar dificultades y aplicar las medidas correctivas necesarias para resolverlos. La información contable que se refleja en los estados financieros como el balance general, cuenta de resultados, y el estado de flujos de efectivo en forma de datos resumidos. Sin embargo, para que los datos sean útiles para los usuarios de los estados financieros y contables, deben estar claramente analizados. Algunas de las maneras de analizar incluyen el uso de ratios, análisis de flujo de efectivo y análisis vertical y horizontal. De este contexto, en este estudio se evaluó la importancia del análisis financiero y contable como una herramienta clave para administrar la empresa eficientemente. El estudio fue analítico en el ámbito de aplicación con diseño documental basado en los fundamentos teóricos de diversos autores. Los resultados más relevantes del análisis indicaron que las empresas, privadas, instituciones públicas y de gobierno hacen hincapié en el uso de análisis de estados financieros como una herramienta para determinar la liquidez, solvencia, precio de las acciones, rentabilidad, crecimiento del negocio y pronósticos. The financial and accounting analysis is fundamental to evaluate the real economic, financial and accounting performance of a company, detect difficulties and apply the necessary corrective measures to solve them. The accounting information in the form of financial statements such as the balance sheet, income statement, and the statement of cash flows in the form of summary data. However, for the data to be useful for the users of the financial and accounting statements they must be analyzed. Some of the ways to analyze include the use of ratios, cash flow analysis and vertical and horizontal analysis. In this context, this study will evaluate the importance of financial and accounting analysis as a key tool to manage the company efficiently. The study will be analytical in the scope of application with documentary design based on the theoretical foundations of various authors. The most relevant results of the analysis indicate that companies, private, public and government institutions emphasize the use of financial statement analysis as a tool to determine liquidity, solvency, share price, profitability, business growth and forecasts. Palabras clave: contable, financiero, eficiencia, gestión, empresa. Keywords: accounting, financial, efficiency, management, company.

scholarly journals ANALYSIS FOR THE PURPOSE OF CREDIT

2019 ◽  
Vol 31 (5) ◽  
pp. 1425-1429
Author(s):  
Blerim Shehu
Keyword(s):  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Assets ◽  
Financial Indicators ◽  
Working Capital ◽  
Short Term ◽  
Accounts Payable ◽  
Lending Activity ◽  
Credit Granting

This topic addresses the financial analysis of a business for lending purposes. Often a business is analyzed as a potential borrower. The lending activity by the financial institutions is complex and in itself contains other elements besides the sound analysis of the financial statements. These other elements are: recognition of the applicant's activity for the loan or its past repayment. The handling of many elements will help the analysts with the purpose of lending. The analysis of financial assets is done by banks, credit analysts for credit granting. The financial statements and the analysis of financial indicators in an enterprise is carried out to make decisions. The analysis of financial statements and financial indicators is carried out to assist in providing reports, explanations to make a decision about the enterprise, whether it is worthwhile to acquire the shares of the enterprise, whether it is a credible creditor, if the investment in the bonds society is most valuable. The following issues will be addressed in this topic. Interpretation of Balance Sheet for lending purposes, analysis of short-term assets and working capital, valuation of inventories in the balance sheet, their importance in the lending process, Interpretation of the size of the receivables and the accounts payable and Interpretation of the Statement of Income for Loan Purposes.

Financial Analyses

2018 ◽  
pp. 116-136
Keyword(s):  
Financial Analysis ◽  
Relevant Literature ◽  
Balance Sheet ◽  
Reliability And Validity ◽  
Worked Examples ◽  
Physical Growth ◽  
Financial Strength ◽  
Income Statement ◽  
Credit Worthiness ◽  
Financial Analyses

Financial analyses provide an account of an enterprise's past performance, a picture of its current financial strength/weakness, and a glimpse into the future financial potential. The owner of a farm firm periodically assesses and analyses the performance of the enterprise against predetermined objectives. The analysis is undertaken with the use of some tools. Because the discerning farmer needs to keep objectives of the enterprise in constant view, this chapter focuses on financial analyses with a view to highlighting the tools used in assessing a farm firm performance against predetermined objectives. The discussions are based on a review of relevant literature. The objectives of this chapter include defining the concept of financial analyses, describing the tools for analyses and showing worked examples of financial analysis, and highlighting the concept of rate of return. Financial analyses can be undertaken by management of an enterprise or by parties outside the enterprise. The three commonly used tools of financial analyses, namely the balance sheet, the income statement, and the cash flow statement, tend to be associated with some flaws, especially with regard to the reliability and validity of the accompanying figures. As a result, results from financial analyses should be interpreted with caution. It is further recommended that financial analyses be matched with a more observable measure of the financial health of a farm enterprise in terms of physical growth and expansion, credit worthiness, and how the enterprise meets its maturing obligations.

Financial Reporting and Auditing Agent with Net Knowledge (FRAANK) and eXtensible Business Reporting Language (XBRL)

2005 ◽  
Vol 19 (1) ◽  
pp. 19-41 ◽  
Author(s):  
Matthew Bovee ◽  
Alexander Kogan ◽  
Kay Nelson ◽  
Rajendra P. Srivastava ◽  
Miklos A. Vasarhelyi
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Cash Flows ◽  
Financial Information ◽  
The Internet ◽  
Practical Applications ◽  
Income Statement ◽  
Accounting Numbers ◽  
Statement Of Cash Flows

This paper describes the development and applications of FRAANK—Financial Reporting and Auditing Agent with Net Knowledge. The prototype of FRAANK presented here provides automated access to, and understanding and integration of, rapidly changing financial information available from various sources on the Internet. In particular, FRAANK implements intelligent parsing to extract accounting numbers from natural-text financial statements available from the SEC EDGAR repository. FRAANK develops an “understanding” of the accounting numbers by means of matching the line-item labels to synonyms of tags in an XBRL taxonomy. As a result, FRAANK converts the consolidated balance sheet, income statement, and statement of cash flows into XBRL-tagged format. Based on FRAANK, we propose an empirical approach toward the evaluation and improvement of XBRL taxonomies and for identifying and justifying needs for specialized taxonomies by assessing a taxonomy fit to the historical data, i.e., the quarterly and annual EDGAR filings. Using a test set of 10-K SEC filings, we evaluate FRAANK's performance by estimating its success rate in extracting and tagging the line items using the year 2000 C&I XBRL Taxonomy, Version 1. The evaluation results show that FRAANK is an advanced research prototype that can be useful in various practical applications. FRAANK also integrates the accounting numbers with other financial information publicly available on the Internet, such as timely stock quotes and analysts' forecasts of earnings, and calculates important financial ratios and other financial-analysis indicators.

scholarly journals IFRS 16 and its Impacts on Aviation Industry

2019 ◽  
Vol 67 (5) ◽  
pp. 1369-1377
Author(s):  
Alžběta Veverková
Keyword(s):  
Financial Analysis ◽  
Balance Sheet ◽  
Point Of View ◽  
Financial Statement ◽  
Aviation Industry ◽  
Income Statement ◽  
Accounting Model ◽  
The Impact

Current differences between the accounting models for a financial and an operating lease and their critics from the users of the financial statement forced the IASB issued a new Leases Standard, IFRS 16, which supersedes IAS 17 Leases and its related interpretations in January 2106. IFRS 16 will eliminate dual accounting model for lessees and it is assumed to have significant business implications, especially from lessee’s point of view. The paper focuses on quantification of the impact of IFRS 16 on selected financial statement items and financial analysis ratios of fifteen European airlines. The research is also concerned with comparison of the article outputs with the previous cases studies. The paper confirmed that lease capitalization under IFRS 16 will have a material impact on the reported numbers in the balance sheet and income statement and result in significant changes to return and leverage ratios.

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