Demonstrate an understanding of financial statement analysis Essay

Demonstrate an understanding of financial statement analysis - Essay Example For instance, if a financial statement analysis is conducted and the results indicate profitability of the company then the shareholders are assured of a company’s prospective growth hence safety of investments. In the contrary, they may decide to sell their shares where financial statement analyses indicate a downfall in profitability. This group’s interest concerns the company’s wealth situation. Their major interest is security of the money they invested in the company and the ability of the company to refund both the accrued interest as well as principle amount within the designated repayment time. The creditors are interested in financial statement analysis for purposes of establishing the short-term liquidity status of a firm. Their main interest is to ascertain a firm’s capability to repay the amount they owe on time. â€Å"They do financial statement analysis from which they are informed on whether there is need to extend the lends and ask for advanced interest charges† (Sinha & Sinha, 2009). It is for this purpose that the information gathered from the financial statements is important. The management is charged with the responsibility of ensuring a smooth running of an organisation. They are responsible in formulation of future policies and plans as well as undertaking immediate decisions. It is for this reason that they should analyse financial statements in order to measure the effectiveness of the policies and the decisions they make in the day-to-day running of a firm. â€Å"In addition, the management’s interest is to ascertain both the short-term and long-tern creditworthiness of the company, productivity, liquidity and return on investment status of the business† (Shim, & Siegel, 2007). It is the duty of every government to ensure that firms conform to tax regulations. Therefore, the government examines financial statements with an aim of determining tax submission. In addition, the government

Communication Essay Example | Topics and Well Written Essays - 500 words - 5

Communication - Essay Example r, our on field work has showed that there exists a significant communication gap between the two sections of hospital personnel rising from inconsistent micromanagement practices and a general absence of information in the lower levels of hierarchy. There existed a general perception that the NHCGL is not a career enhancing option for senior and junior members alike. The concern over stagnation in the career graph can adversely affect the motivation level of the personnel and their subsequent work efficiency. The senior management was found not to take an active interest in the development of junior members and are alleged to be more concerned with their own affairs. In matters pertaining to the administrative policy making, there exists no mechanism for the administration to review the feedback of ‘those administered’. Another recurring concern is that of redeployment of military personnel which should ideally consider various personnel parameters such as time on contract, time on board, previous deployments and moreover ensuring that only qualified candidates are called for deployment. A majority of the staff is ill informed about the general redeployment process. These micro managerial flaws exist despite the presence of various training, development and administrative grievance redressal programs within the organization. The Command Career Counselor (CCC) ensures that the Commanding Officer is informed on all matters concerning retention. There is an Education and Training Department which requires the naval staff to undergo an annual training program which covers various topics pertinent to the staff members. The entire training session beginning at the period of initiation of a new member is tracked by a Command Check In/ Check Out program. In addition there are numerous orientation programs emphasizing a multidisciplinary approach to training and services. But none of these addresses the concerns of those members who are well initiated into the