These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some metric, often the amount of money invested. They highlight how effectively the profitability of a company is being managed. Common examples of profitability ratios include return on sales, return on investment, return on equity, return on capital employed, return on capital invested, gross profit margin and net profit margin. All of these rations indicate how well this company is performing at generating profits or revenues relative to a certain metric. Solvency ratios this is one of many ratios used to measure a company’s ability to meet long-term obligations.
If the income of the business is more than the expenses then the company has made money and vice versa. The figures covered in the income statement are important to its managers and owners, but also to their investors and creditors’.
For example, the cash flow can be affected when the company purchases products, and if the costs of the products are an outstanding amount in turn it will affect the assets on the balance sheet. The cash flow statement studies the organizations transactions and puts them into categories such as, operating, investing, and financing
Managers of an organisation manage: themselves, people and relationships, policies and procedures, environments, financial and physical resources, information and technology, ideas, operations and processes. Leaders and managers demonstrate ethical behaviour when they: * match action to vision and espoused values * do what they say they will do * treat employees and society with respect * give as much as they receive As a leader, I am a model those behaviours, and to promote ethical workplace behaviours I should make clear expectations * lead by example * provide appropriate coaching, mentoring and
1. What Functions of HRM are similar to marketing functions? How can thinking about “marketing” a company’s jobs improve the strategy focus of human resources personnel? The functions of HRM that draw similarities to marketing functions are the aspects of identification, recruitment and having the where with all to be able to make great choices on perspective personnel. In order to correctly carry out these actions it takes being able to present these functions in a way that the consumers can grasp and have a strong urge to want to be a part of the company that is being presented.
Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors. Apply your knowledge of the theory of this company’s market structure. How does the company make pricing and production decisions? Is your observation supported by the theoretical models? Refer to the financial reports for illustration.
The pro forma statements are commonly used when applying for a business loan. Typically, the investor will require a business owner to submit a pro forma statement with the loan application. Company’s carrying inventory must have a pro forma statement that would show the impact of the amount borrowed on the current assets and will also show the liabilities on the current balance sheets. This provides management with realistic numbers of the amount of cash required by the company. There are a wide variety of ways one can benefit from the pro forma
f. Free cash flows represent the cash that a company is able to produce after laying out the money required to maintain or grow its asset base. g. Weighted average cost of capital is the average return required by all of the firm’s investors. h. Free cash flows and weighted average cost of capital interact to determine a firms value by looking at the amount of cash needed to grow and amount needed to be paid out by investors.
With Citigroup’s organizational culture it has guided employees toward the behaviors and attitudes that have put the company at risk. The company must revert to what is important that is the customers and focus on the core values of the organizations, and the vision of the organization. To change Citigroup’s organizational culture there needs to be a shared responsibility among the leaders of the company, managers, and employees. By having a shared responsibility will make Citigroup’s organizational culture more effective and productive. Having shared responsibility will allow each employee to achieve or accomplish his or her full potential, and acting with the greatest level integrity when dealing with one another, and customers.
The rules and regulations of ethics and behavior are affected by the basic values of the goals of company with in the community. Even though there are some organizations that think the only social goal of a company is to gain benefit. With a different school of thought, other members think that the goal of a company is larger than just gaining profit and that everyone that is influenced by the firm's activity, suppliers, employees, shareholders, customers, and the domestic society have a concern and commitment in the firms activity. These commitments are very important to a company regardless of whether it is international or domestic in its activities. However, international companies have to deal with specific difficulties and requirements above and beyond those operating only in local markets.