Principle of Finance Week 4 Assignment - Business & Finance
Make sure you read the reading for this assignment 9/18/21, 11:16 AM Module Four Case Study Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795438/View 1/4 Module Four Case Study Guidelines and Rubric Overview People should understand the impact of different types of risk on financial health, whether they’re dealing with personal or corporate finances. The risks involved with personal finance o�en only impact individuals and families—for example, when determining if you can afford to buy a house or deciding whether to invest in stocks. Financial risks for businesses o�en affect mul�ple people throughout the en�re company, including individuals who do not work in the finance department. When businesses make finance-related decisions, it is essen�al that they know how their decisions will impact different aspects of their company. Prompt Read the Assessing a Company’s Future Financial Health case study, then write a response. Specifically, you must address the following rubric criteria: Systema�c and Unsystema�c Risk: Explain the differences between systema�c and unsystema�c risk. Financial Risks: Describe the poten�al impacts of the following types of financial risk on the company featured in the case study: Interest rate risk Economic risk Credit risk Opera�onal risk Lower Growth Impact: Explain the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case study. Higher Growth Impact: Explain the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case study. Guidelines for Submission Your submission should be a 2 to 3-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style. Module Four Case Study Rubric Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value Systema�c and Unsystema�c Risk Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner Explains the differences between systema�c and unsystema�c risk Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the differences between systema�c and unsystema�c risk Does not a�empt criterion 20  FIN-320-T1991 Principles of Finance 21EW1 TM https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1768/Previous?pId=14795407 https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1768/Next?pId=14795407 https://learn.snhu.edu/d2l/common/dialogs/quickLink/quickLink.d2l?ou=842676&type=content&rcode=snhu-1655688 https://app.readspeaker.com/cgi-bin/rsent?customerid=9568&url=https%3A%2F%2Flearn.snhu.edu%2Fcontent%2Fenforced%2F842676-FIN-320-T1991-OL-TRAD-UG.21EW1%2FModule%2520Four%2520Case%2520Study%2520Guidelines%2520and%2520Rubric.html&lang=en_us&voice=9568&readid=d2l_read_element_1 https://learn.snhu.edu/d2l/home/842676 9/18/21, 11:16 AM Module Four Case Study Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795438/View 2/4 unsystema�c risk Financial Risks Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner Describes the poten�al impacts of interest rate risk, economic risk, credit risk, and opera�onal risk on the company featured in the case study Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing in further detail the poten�al impacts of interest rate risk, economic risk, credit risk, and opera�onal risk on the company featured in the case study Does not a�empt criterion 21 Lower Growth Impact Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner Explains the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case study Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the impact a lower growth in sales could have on the dividend policy and retained earnings for the company featured in the case study Does not a�empt criterion 22 Higher Growth Impact Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner Explains the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case study Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in further detail the impact a higher growth in sales could have on the dividend policy and retained earnings for the company featured in the case study Does not a�empt criterion 22 Ar�cula�on of Response Exceeds proficiency in an excep�onally clear, insigh�ul, sophis�cated, or crea�ve manner Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstra�ng an understanding of audience and purpose Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, nega�vely impac�ng readability Submission has cri�cal errors in grammar, sentence structure, and spelling, preven�ng understanding of ideas 10 9/18/21, 11:16 AM Module Four Case Study Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795438/View 3/4 purpose Cita�ons and A�ribu�ons Uses cita�ons for ideas requiring a�ribu�on, with few or no minor errors Uses cita�ons for ideas requiring a�ribu�on, with consistent minor errors Uses cita�ons for ideas requiring a�ribu�on, with major errors Does not use cita�ons for ideas requiring a�ribu�on 5 Total: 100% 9/18/21, 11:16 AM Module Four Case Study Guidelines and Rubric - FIN-320-T1991 Principles of Finance 21EW1 https://learn.snhu.edu/d2l/le/content/842676/viewContent/14795438/View 4/4 Reflect in ePortfolio Download Print Open with docReader Task: View this topic Activity Details https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1768/Previous?pId=14795407 https://learn.snhu.edu/d2l/le/content/842676/navigateContent/1768/Next?pId=14795407 javascript:void(0); 9 - 9 1 1 - 4 1 2 R E V : M A Y 2 8 , 2 0 1 2 ________________________________________________________________________________________________________________ Professor Thomas Piper prepared the original version of this note, “Assessing a Firm’s Future Financial Health,” HBS No. 201-077, which is being replaced by this version prepared by the same author. This note was prepared as the basis for class discussion. Copyright © 2010, 2011, 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1- 800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Busin ess School. Assessing a Company’s Future Financial Health Assessing the long-term financial health of a company is an important task for management as it formulates goals and strategies and for outsiders as they consider the extension of credit, long-term supplier agreements, or an investment in a company’s equity. History abounds with examples of companies that embarked on overly ambitious programs and subsequently discovered that their portfolios of programs could not be financed on acceptable terms. The outcome was frequently the abandonment of programs mid-stream at considerable financial, organizational, and human cost. It is the responsibility of management to anticipate a future imbalance in the corporate financial system before its severity is reflected in the financials, and to consider corrective action before both time and money are exhausted. The avoidance of bankruptcy is an insufficient standard. Management must ensure the continuity of the flow of funds to all of its strategically important programs, even in periods of adversity. Figure A provides a conceptualization of the corporate financial system, with a suggested step-by- step process to assess whether it will remain in balance over the ensuing 3 to 5 years. The remainder of this note discusses each of the steps in the process and then provides an exercise on the various financial measures that are useful as part of the analysis. The final section of the note demonstrates the relationship between a firm’s strategy and operating characteristics; and its financial characteristics. This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. 911-412 Assessing a Company’s Future Financial Health 2 Figure A The Corporate Financial System Analyze Goals Step 1 Strategy Market, Competitive Technology Regulatory and Operating Characteristics Step 2 Analyze Revenue Outlook  growth rate  volatility, predictability Step 3 Step 4 Analyze Investment in Assets Assess Economic Performance  to support growth  profitability  improvement/deterioration in asset management  cash flow  volatility, predictability Step 5 Step 6 Assess External Financing Need Ensure Access to Target Sources of Finance  $ amount  lending/investing criteria  timing, duration  deferability  attractiveness of firm to each target source Step 7 Assess Viability of 3 to 5-year Plan  consistency with goals  achievable operating plan  achievable financing plan Step 8 Perform Stress Test for Viability Under Various scenarios Step 9 Formulate Financing and Operating Plan for Current Year This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. Assessing a Company’s Future Financial Health 911-412 3 Steps 1, 2: Analyze Fundamentals The corporate financial system is driven by a firm’s goals, business unit choices and strategies, market conditions, and operating characteristics. The firm’s strategy and sales growth in each of its business units will determine the investment in assets needed to support these strategies; and the effectiveness of the strategies, combined with the response of competitors and regulators, will strongly influence the firm’s competitive and profit performance, its need for external finance, and access to debt and equity markets. Clearly, many of these questions require information beyond that contained in a company’s published financial reports. Step 3: Analyze Investments to Support the Business Unit(s) Strategy(ies) The business unit strategies inevitably require investments in accounts receivable, inventories, plant & equipment, and possibly, acquisitions. Step 3 of the process is an attempt to estimate the amount that will be tied up in each of the asset types by virtue of sales growth and the improvement/deterioration in asset management. An analyst can make a rough estimate by studying the past pattern of the collection period, the days of inventory, and plant & equipment as a percentage of cost of goods sold; and then applying a “reasonable value” for each category to the sales forecast or the forecast of cost of goods sold. Extrapolation of past performance assumes, of course, that the future underlying market, competitive, and regulatory “conditions” will be unchanged from those that influenced the historical performance. Step 4: Assess Future Profitability and Competitive Performance Strong sustained profitability is an important determinant of (1) a firm’s access to debt and/or equity finance on acceptable terms; (2) its ability to self-finance growth through the retention of earnings; (3) its capacity to place major bets on risky new technologies, markets, and/or products; and (4) the valuation of the company. A reasonable starting point for assessing firm’s future profitability is to analyze its past pattern of profitability. 1. What has been the average level, trend, and volatility of profitability? 2. Is the level of profitability sustainable, given the outlook for the market and for competitive and regulatory pressures? 3. Is the current level of profitability at the expense of future growth and/or profitability? 4. Has management initiated major profit improvement programs? Are they unique to the firm or are they industrywide and may be reflected in lower prices rather than higher profitability? 5. Are there any “hidden” problems, such as suspiciously high levels or buildups of accounts receivable or inventory relative to sales, or a series of unusual transactions and/or accounting changes? Step 5: Assess Future External Financing Needs Whether a company has a future external financing need depends on (1) its future sales growth; (2) the length of its cash cycle; and (3) the future level of profitability and profit retention. Rapid sales growth by a company with a long cash cycle (a long collection period + high inventories + high plant & equipment relative to sales) and low profitability/low profit retention is a recipe for an ever- This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. 911-412 Assessing a Company’s Future Financial Health 4 increasing appetite for external finance, raised in the form of loans, debt issues, and/or sales of shares. Why? Because the rapid sales growth results in rapid growth of an already large level of total assets. The increase in total assets is offset partially by an increase in accounts payable and accrued expenses, and by a small increase in owners’ equity. However, the financing gap is substantial. For example, the company portrayed in Table A requires $126 million of additional external finance by the end of year 2010 to finance the increase in total assets required to support 25% per year sales growth in a business that is fairly asset intensive. Table A Company Financials Assuming a 25% Increase in Sales ($ in millions) 2009 2010 Assets Cash $ 12 ↑ 25% $ 15 Accounts receivable 240 ↑ 25% 300 Inventories 200 ↑ 25% 250 Plant & equipment 400 ↑ 25% 500 Total $852 $1,065 Liabilities and Equity Accounts payable $100 ↑ 25% $ 125 Accrued expenses 80 ↑ 25% 100 Long-term debt 272 Unchanged 272 Owners’ equity 400 footnotea 442 Total $852 $ 939 External financing need 0 126 Total $852 $1,065 a It is assumed (1) that the firm earns $60 million (a 15% return on beginning of year equity) and pays out $18 million as a cash dividend; and (2) that there is no required debt repayment in 2010. If, however, the company reduced its sales growth to 5% (and total assets, accounts payable and accrued expenses increased accordingly by 5%), the need for additional external finance would drop from $126 million to $0. High sales growth does not always result in a need for additional external finance. For example, a food retailer that extends no credit to customers, has only eight days of inventory, and does not own its warehouses and stores, can experience rapid sales growth and not have a need for additional external finance provided it is reasonably profitable. Because it has so few assets, the increase in total assets is largely offset by a corresponding, spontaneous increase in accounts payable and accrued expenses. Step 6: Ensure Access to Target Sources of External Finance Having estimated the company’s future financing needs, management must identify the target sources (e.g., banks, insurance companies, public debt markets, public equity market) and establish financial policies that will ensure access to financing on acceptable terms. Consider the following questions: This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. Assessing a Company’s Future Financial Health 911-412 5 1. How sound is the firm’s financial structure, given its level of profitability and cash flow, its level of business risk, and its future need for finance? 2. How will the firm service its debt? To what extent is it counting on refinancing with a debt or equity issue? 3. Does the firm have assured access on acceptable terms to the equity markets? How many shares could be sold and at what price in “good times”? In a period of adversity? 4. What criteria are used by each of the firm’s target sources of finance to determine whether finance will be provided and, if so, on what terms? The evaluation of a firm’s financial structure can vary substantially depending on the perspective of the lender/investor. A bank may consider a seasonal credit a very safe bet. Considerable shrinkage can occur in the conversion of inventory into sales and collections without preventing repayment of the loan. In contrast, an investor in the firm’s 20-year bonds is counting on its sustained health and profitability over a 20-year period. Step 7: Assess Viability of the 3- to 5-Year Plan Consider the following questions: 1. Is the operating plan on which the financial forecasts are based achievable? 2. Will the company achieve its strategic, competitive, and financial goals? 3. Will the resources required by the plan be available? 4. How will the firm’s competitive, organizational, and financial health at the end of the 3 to 5 years compare with its condition at the outset? Step 8: Perform Stress Test under Scenarios of Adversity Financing plans typically work well if the assumptions on which they are based turn out to be accurate. However, this is an insufficient test in situations marked by volatile and unpredictable conditions. The test of the soundness of a 3- to 5-year plan is whether the continuity of the flow of funds to all strategically important programs can be maintained under various scenarios of adversity for the firm and/or the capital markets—or at least be maintained as well as one’s competitors can maintain the funding of their programs. Step 9: Formulate Current Financing Plan How should the firm meet its financing needs in the current year? How should it balance the benefits of future financing flexibility (by selling equity now) with the temptation to delay the sale of equity by financing with debt now, in hopes of realizing a higher price in the future? The next section of this note discusses the financial measures that can be useful in understanding the past performance of a company. Extrapolation of the firm’s past performance, if done thought- fully, can provide valuable insights into the future health and balance of the corporate financial system. Historical analysis can also identify possible opportunities for improved asset ma na gement or margin i m p r o v e m e n t , and can provide an important, albeit incomplete, basis for evaluating the attractiveness of a business and/or the effectiveness of a management team. This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. 911-412 Assessing a Company’s Future Financial Health 6 Financial Ratios and Financial Analysis The three primary sources of financial data for a business are its income statement, the balance sheet, and statement of cash flows. The income statement summarizes revenues and expenses over a period of time. The balance sheet shows what a company owns (its assets), what it owes (its liabilities), and what has been invested by the owners (owners’ equity) at a specific point in time. The statement of cash flow categorizes all cash transactions during a specific period in terms of cash flows generated or used for operating activities, investing activities, and financing activities. The focus of this section is on performance measures based on the income statements and balance sheets of SciTronics—a medical device company. The measures can be grouped by type: (1) profitability measures, (2) activity (asset management) measures, and (3) leverage and liquidity measures. Please refer to the financial statements of SciTronics as shown in Exhibits 1 and 2. As you work through the questions in this section, please also consider three broad questions: 1. What is your assessment of the performance of SciTronics during the 2005–2008 period? 2. Has its financial strength and its access to external sources of finance improved or weakened? 3. What are the 2–3 most important questions you would ask management as the result of your analysis? Sales Growth Sales growth is an important driver of the need to invest in various types of assets and of the company’s value. Sales growth also provides some indication of the effectiveness of a firm’s strategy and product development activities, and of customer acceptance of a firm’s products and services. Use the following questions to guide your analysis. 1. During the four-year period ended December 31, 2008, SciTronics’ sales grew at a _____% compound rate. There were no acquisition or divestitures. Profitability Ratio: How Profitable Is the Company? Profitability is a necessity over the long-run. It strongly influences (1) the company’s access to debt; (2) the valuation of the company’s common stock; (3) the willingness of management to issue stock; and (4) the capacity to self-finance. One measure of a company’s profitability is its return on sales, measured by dividing net income by net sales. 1. SciTronics’ profit as a percentage of sales in 2008 was ______ %. 2. This represented an increase/decrease from ______% in 2005. Management and investors often are more interested in the return earned on the funds invested than in the level of profits as a percentage of sales. Companies operating in businesses requiring very little investment in assets often have low profit margins but earn very attractive returns on invested funds. Conversely, there are numerous examples of companies in very capital-intensive businesses that earn miserably low returns on invested funds, despite seemingly attractive profit margins. Therefore, it is useful to examine the return earned on the funds provided by the shareholders and by the “investors” in the company’s interest-bearing debt. To increase the comparability across companies, it is useful to use EBIAT (earnings before interest but after taxes) as the measure of return. This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. Assessing a Company’s Future Financial Health 911-412 7 The use of EBIAT as the measure of return also allows the analyst to compare the return on invested capital (calculated before the deduction of interest expense) with the company’s estimated cost of capital to determine the long-term adequacy of the company’s profitability. EBIAT is calculated by multiplying EBIT (earnings before interest and taxes) times (1—the average tax rate). 3. SciTronics had a total of $______ of capital at year-end 2008 and earned, before interest but after taxes (EBIAT), $______ in 2008. Its return on capital was _____% in 2008, which represented an increase/decrease from the _____% earned in 2005. From the viewpoint of the shareholders, an equally important figure is the company’s return on equity. Return on equity is calculated by dividing profit after tax by the owners’ equity. Return on equity indicates how profitably the company is utilizing shareholders’ funds. 4. SciTronics had $_____ of owners’ equity and earned $_____ after taxes in 2008. Its return on equity was _____%, which represented an improvement/deterioration from the _____% earned in 2005. Activity Ratios: How Well Does the Company Employs Its Assets? The second basic type of financial ratio is the activity ratio. Activity ratios indicate how well a company employs its assets. Ineffective utilization of assets results in the need for more finance, unnecessary interest costs, and a correspondingly lower return on capital employed. Furthermore, low activity ratios or deterioration in activity ratios may indicate uncollectible accounts receivable or obsolete inventory or equipment. Total asset turnover measures the company’s effectiveness in utilizing its total assets and is calculated by dividing total assets into sales. 1. Total asset turnover for SciTronics in 2008 can be calculated by dividing $______ into $______. The turnover improved/deteriorated from ______ times in 2005 to _____ times in 2008. It is useful to examine the turnover ratios for each type of asset, since the use of total assets may hide important problems in one of the specific asset categories. One important category is accounts receivables. The average collection period measures the number of days the company must wait, on average, between the time of a sale and when it is paid. The average collection period is calculated in two steps. First, divide annual credit sales by 365 days to determine the average sales per day: This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. 911-412 Assessing a Company’s Future Financial Health 8 Then, divide the accounts receivable by the average credit sales per day to determine the number of days of sales that are still unpaid: 2. SciTronics had $_____ invested in accounts receivables at year-end 2008. Its average sales per day were $_____ during 2008 and its average collection period was _____days. This represented an improvement/deterioration from the average collection period of _____ days in 2005. A third activity ratio is the inventory turnover ratio, which indicates the effectiveness with which the company is employing inventory. Since inventory is recorded on the balance sheet at cost (not at its sales value), it is advisable to use cost of goods sold as the measure of activity. The inventory turnover figure is calculated by dividing cost of goods sold by inventory: 3. SciTronics apparently needed $_____ of inventory at year-end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $______. It therefore had an inventory turnover of _____ times. This represented an improvement/deterioration from _____ times in 2005. An alternative measure of inventory management is days of inventory, which can be calculated by dividing the cost of goods sold by 365 days to determine the average cost of goods sold per day. Days of inventory is calculated by dividing the total inventory by the cost of goods sold per day. A fourth and final activity ratio is the fixed asset turnover ratio, which measures the effectiveness of the company in utilizing its plant & equipment: 4. SciTronics had net fixed assets of $_____ and sales of $_____ in 2008. Its fixed asset turnover ratio in 2008 was _____ times, an improvement/deterioration from _____ times in 2005. Leverage Ratios: How Soundly Is the Company Financed? The leverage ratio is the third basic type of financial ratio. There are a number of balance sheet measures of financial leverage. The various leverage ratios measure the relationship of funds supplied by creditors to the funds supplied by owners. The use of borrowed funds by reasonably profitable companies will improve the return on equity. However, it increases the riskiness of the business and the riskiness of the returns to the stockholders, and can result in financial distress if used in excessive amounts. The ratio of total assets divided by owners’ equity is an indirect measure of leverage. A ratio, for example, of $6 of assets for each $1 of owner’s equity indicates that $6 of assets is financed by $1 of owners’ equity and $5 of liabilities. This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. Assessing a Company’s Future Financial Health 911-412 9 1. SciTronics’ ratio of total assets divided by owners’ equity increased/decreased from _____ at year-end 2005 to _____ at year-end 2008. The same “story” of increasing financial leverage is told by dividing total liabilities by total assets. 2. At year-end 2008, SciTronics’ total liabilities were _____% of its total assets, which compares with _____% in 2005. Lenders—especially long-term lenders—want reasonable assurance that the company will be able to repay the loan in the future. They are concerned with the relationship between a company’s debt and its total economic value. This ratio is called the total debt ratio at market. The market value of the equity is calculated by multiplying the number of shares of common stock outstanding times the market price per share. 3. The market value of SciTronics’ equity was $175,000,000 at December 31, 2008. The total debt ratio at market was ______. A fourth ratio that relates the level of debt to economic value and performance is the times interest earned ratio. This ratio relates earnings before interest and taxes—a measure of profitability and of long-term viability—to the interest expense—a measure of the level of debt. 4. SciTronics’ earnings before interest and taxes (operating income) were $_____ in 2008 and its interest charges were $_____. Its times interest earned was _____ times. This represented an improvement/deterioration from the 2005 level of _____ times. A fifth and final leverage ratio is the number of days of payables. This ratio measures the average number of days that the company is taking to pay its suppliers of raw materials and components. It is calculated by dividing annual purchases by 365 days to determine average purchases per day: Accounts payable are then divided by average purchases per day: to determine the number of days of purchases that are still unpaid. It is often difficult to determine the purchases of a firm. Instead, the income statement shows the cost of goods sold, a figure that includes not only raw materials but also labor and overhead. Thus, one can often gain only a rough idea as to whether a firm is becoming more or less dependent on its suppliers for finance. This can be done by tracking the pattern over time of accounts payable as a percent of cost of goods sold. This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. 911-412 Assessing a Company’s Future Financial Health 10 5. SciTronics owed its suppliers $_____ at year-end 2008. This represented _____% of cost of goods sold and was an increase/decrease from _____% at year-end 2005. The company appears to be more/less prompt in paying its suppliers in 2008 than it was in 2005. 6. The financial riskiness of SciTronics increased/decreased between 2005 and 2008. Liquidity Ratios: How Liquid Is the Company? The fourth basic type of financial ratio is the liquidity ratio. These ratios measure a company’s ability to meet financial obligations as they become current. The current ratio, defined as current assets divided by current liabilities, assumes that current assets are much more readily and certainly convertible into cash than other assets. It relates these fairly liquid assets to claims that are due within one year—the current liabilities. 1. SciTronics held $_____ of current assets at year-end 2008 and owed $_____ to creditors, due to be paid within one year. SciTronics’ current ratio was _____, an increase/decrease from the ratio of _____ at year-end 2005. The quick ratio or acid test is similar to the current ratio but excludes inventory from the current assets: Inventory is excluded because it is often difficult to convert into cash (at least at book value) if the company is struck by adversity. 2. The quick ratio for SciTronics at year-end 2008 was _____, an increase/decrease from the ratio of _____ at year-end 2005. Profitability Revisited Management can “improve” its return on equity by improving its return on sales and/or its asset turnover and/or by increasing its financial leverage as measured by total assets divided by owners’ equity. Each method of “improvement” differs operationally and in terms of risk. 1. The improvement in SciTronics’ return on equity from 8.2% in 2005 to 18.7% in 2008 resulted from an increase/decrease in its return on sales; and from an increase/decrease in its asset turnover, and an increase/decrease in its financial leverage. This document is authorized for use only by Terrell McGhee in FIN-320-T1991 Principles of Finance 21EW1 at Southern New Hampshire University, 2021. Assessing a Company’s Future Financial Health 911-412 11 A Warning The calculated ratios are no more valid than the financial statements from which they are derived. The quality of the financial statements should be assessed and appropriate adjustments should be made, before any ratios are calculated. Particular attention should be placed on assessing the reasonableness of the accounting choices and assumptions that are embedded in the financial statements. The Case of the Unidentified Industries The preceding exercise suggests a series of questions that may be helpful in assessing a company’s future financial health. It also describes several ratios that are useful in answering some of the questions, especially if the historical trend in these ratios can be reasonably extrapolated. However, it is also important to compare the actual absolute value with some standard to determine whether the company is performing well. Unfortunately, there is no single current ratio, inventory turnover, or debt ratio that is appropriate to all industries. The operating and competitive characteristics of a company’s industry greatly influence its investment in the various types of assets, the riskiness of these investments, and the financial structure of its balance sheet. Try to match the five following types of companies with their corresponding balance sheets and …
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Discuss how two-way communication on social media channels impacts businesses both positively and negatively. Provide any personal examples from your experience od pressure and hypertension via a community-wide intervention that targets the problem across the lifespan (i.e. includes all ages). Develop a community-wide intervention to reduce elevated blood pressure and hypertension in the State of Alabama that in in body of the report Conclusions References (8 References Minimum) *** Words count = 2000 words. *** In-Text Citations and References using Harvard style. *** In Task section I’ve chose (Economic issues in overseas contracting)" Electromagnetism w or quality improvement; it was just all part of good nursing care.  The goal for quality improvement is to monitor patient outcomes using statistics for comparison to standards of care for different diseases e a 1 to 2 slide Microsoft PowerPoint presentation on the different models of case management.  Include speaker notes... .....Describe three different models of case management. visual representations of information. They can include numbers SSAY ame workbook for all 3 milestones. You do not need to download a new copy for Milestones 2 or 3. When you submit Milestone 3 pages): Provide a description of an existing intervention in Canada making the appropriate buying decisions in an ethical and professional manner. Topic: Purchasing and Technology You read about blockchain ledger technology. Now do some additional research out on the Internet and share your URL with the rest of the class be aware of which features their competitors are opting to include so the product development teams can design similar or enhanced features to attract more of the market. The more unique low (The Top Health Industry Trends to Watch in 2015) to assist you with this discussion.         https://youtu.be/fRym_jyuBc0 Next year the $2.8 trillion U.S. healthcare industry will   finally begin to look and feel more like the rest of the business wo evidence-based primary care curriculum. Throughout your nurse practitioner program Vignette Understanding Gender Fluidity Providing Inclusive Quality Care Affirming Clinical Encounters Conclusion References Nurse Practitioner Knowledge Mechanics and word limit is unit as a guide only. The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-su Trigonometry Article writing Other 5. June 29 After the components sending to the manufacturing house 1. In 1972 the Furman v. Georgia case resulted in a decision that would put action into motion. Furman was originally sentenced to death because of a murder he committed in Georgia but the court debated whether or not this was a violation of his 8th amend One of the first conflicts that would need to be investigated would be whether the human service professional followed the responsibility to client ethical standard.  While developing a relationship with client it is important to clarify that if danger or Ethical behavior is a critical topic in the workplace because the impact of it can make or break a business No matter which type of health care organization With a direct sale During the pandemic Computers are being used to monitor the spread of outbreaks in different areas of the world and with this record 3. Furman v. Georgia is a U.S Supreme Court case that resolves around the Eighth Amendments ban on cruel and unsual punishment in death penalty cases. The Furman v. Georgia case was based on Furman being convicted of murder in Georgia. Furman was caught i One major ethical conflict that may arise in my investigation is the Responsibility to Client in both Standard 3 and Standard 4 of the Ethical Standards for Human Service Professionals (2015).  Making sure we do not disclose information without consent ev 4. Identify two examples of real world problems that you have observed in your personal Summary & Evaluation: Reference & 188. Academic Search Ultimate Ethics We can mention at least one example of how the violation of ethical standards can be prevented. Many organizations promote ethical self-regulation by creating moral codes to help direct their business activities *DDB is used for the first three years For example The inbound logistics for William Instrument refer to purchase components from various electronic firms. During the purchase process William need to consider the quality and price of the components. In this case 4. A U.S. Supreme Court case known as Furman v. Georgia (1972) is a landmark case that involved Eighth Amendment’s ban of unusual and cruel punishment in death penalty cases (Furman v. Georgia (1972) With covid coming into place In my opinion with Not necessarily all home buyers are the same! When you choose to work with we buy ugly houses Baltimore & nationwide USA The ability to view ourselves from an unbiased perspective allows us to critically assess our personal strengths and weaknesses. This is an important step in the process of finding the right resources for our personal learning style. Ego and pride can be · By Day 1 of this week While you must form your answers to the questions below from our assigned reading material CliftonLarsonAllen LLP (2013) 5 The family dynamic is awkward at first since the most outgoing and straight forward person in the family in Linda Urien The most important benefit of my statistical analysis would be the accuracy with which I interpret the data. The greatest obstacle From a similar but larger point of view 4 In order to get the entire family to come back for another session I would suggest coming in on a day the restaurant is not open When seeking to identify a patient’s health condition After viewing the you tube videos on prayer Your paper must be at least two pages in length (not counting the title and reference pages) The word assimilate is negative to me. I believe everyone should learn about a country that they are going to live in. It doesnt mean that they have to believe that everything in America is better than where they came from. It means that they care enough Data collection Single Subject Chris is a social worker in a geriatric case management program located in a midsize Northeastern town. She has an MSW and is part of a team of case managers that likes to continuously improve on its practice. The team is currently using an I would start off with Linda on repeating her options for the child and going over what she is feeling with each option.  I would want to find out what she is afraid of.  I would avoid asking her any “why” questions because I want her to be in the here an Summarize the advantages and disadvantages of using an Internet site as means of collecting data for psychological research (Comp 2.1) 25.0\% Summarization of the advantages and disadvantages of using an Internet site as means of collecting data for psych Identify the type of research used in a chosen study Compose a 1 Optics effect relationship becomes more difficult—as the researcher cannot enact total control of another person even in an experimental environment. Social workers serve clients in highly complex real-world environments. Clients often implement recommended inte I think knowing more about you will allow you to be able to choose the right resources Be 4 pages in length soft MB-920 dumps review and documentation and high-quality listing pdf MB-920 braindumps also recommended and approved by Microsoft experts. The practical test g One thing you will need to do in college is learn how to find and use references. References support your ideas. College-level work must be supported by research. You are expected to do that for this paper. You will research Elaborate on any potential confounds or ethical concerns while participating in the psychological study 20.0\% Elaboration on any potential confounds or ethical concerns while participating in the psychological study is missing. Elaboration on any potenti 3 The first thing I would do in the family’s first session is develop a genogram of the family to get an idea of all the individuals who play a major role in Linda’s life. After establishing where each member is in relation to the family A Health in All Policies approach Note: The requirements outlined below correspond to the grading criteria in the scoring guide. At a minimum Chen Read Connecting Communities and Complexity: A Case Study in Creating the Conditions for Transformational Change Read Reflections on Cultural Humility Read A Basic Guide to ABCD Community Organizing Use the bolded black section and sub-section titles below to organize your paper. For each section Losinski forwarded the article on a priority basis to Mary Scott Losinksi wanted details on use of the ED at CGH. He asked the administrative resident