The purpose of this paper is to analyze the financial structure of General Nutrition Center Holdings Inc. The idea is to look over all financial documents related to the company, and give insight into how well the company is doing financially. The annual report of the company is done at the end of the fiscal year which is on December 31st of each year. The financial statements located in the annual report show the direct link of how the company is earning profits, where the money is being distributed, and how much profit is left over once all the operations and base cost of running the company is paid. The financial statement analysis is a vital part of the annual report, and must be done in a timely manner to show all investors, shareholders, …show more content…
Each one of these reports give a detailed account of how the company is earning money, where the money is flowing, and the net profits the company is earning. These reports are an important part of the annual report and give a base account of earnings for the company along with how much cash is needed to pay off any debts accumulated over time. This analysis of each report goes into detail and gives a summary how money is distributed in the corporation as well as if the company is financially able to pay off accumulated debts (Temte, 2003). This paper will show each of these reports and how they define what decisions will be made in the future of the company in question. It will also determine what problems need to be addressed in order to fix existing problems within the corporate structure along with what plans need to be made to fix them. These are all important components when observing and analyzing all financial …show more content…
The financial report gives relevant information about a company and is presented in a manner that is easy to understand. When analyzing a company there are certain factors to look for and they are: the background of the company, how well the company is currently functioning, short term liquidity of the firm, the capital structure of the firm, profitability of the firm, and operating of the firm. The financial statement provided by a company gives shareholders, investors, upper management, and loan officers a look into the company, and gives insight into the cash flow, operations, and how well the company is making a profit for its investors and shareholders. This statement is very important so investors, shareholders, and loan officers can get insight into their investment. This also can help give vital information to show loan officers if the company can pay back any loans or give investors and shareholder information if they can get a return on their investment (Tracy, 2014). For investors and shareholder, this gives them an opportunity to see where their money is going, how it is being spent, and how much of a profit they have earned during the fiscal
In analyzing the common-size balance sheet for Applebee’s, it is noted that the total current assets has jumped from 11% to 14% of the total assets. The total assets for Applebee’s has jumped 6% from 2000 to 2001 driven by increased in the total current assets of 28%. Of those 28% increase, they consisted of 88% increase in the Cash & Equivalents (increased of $10.6 millions) caused by the decreased in the Capital Stock repurchasing in 2001 by Applebee’s. The repurchase of capital stock has decreased by 31% as noted from the year-to-year percentage changes of the Statement of Cash Flow which equivalent to about $11 million dollars. The other current assets increased was from the other Current Assets category; there was an increase of 92% from 2000 to 2001. Due to the higher earnings for Applebee’s, there was an increase in income tax due. A significant component of the increase of other Current Assets was from increased in prepaid income taxes with net deferred income tax asset of $6.7 millions dollars.
The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions.
“If you live in a free market and a free society, shouldn’t you have the right to know what you’re buying? It’s shocking that we don’t and it’s shocking how much is kept from us” (Kenner). For years, the American public has been in the dark about the conditions under which the meat on their plate was produced. The movie, Food Inc. uncovers the harsh truths about the food industry. This shows that muckraking is still an effective means of creating change as shown by Robert Kenner’s movie, Food Inc. and the reforms to the food industry that followed its release.
The purpose of this paper is to provide data and analysis of PepsiCo, Inc. and The Coca-Cola Companies financial statements so that a potential investor can make an educated decision about where to place their money. The paper shows a vertical analysis of each company’s consolidated balance sheet, a horizontal analysis of their consolidated statement of income ratios showing solvency, liquidity and profitability.
There are several methods used to measure the financial health of a company with the use of various statements all providing important financial data used by varying parties. Knowing and understanding the financial results of the company’s operations over a specific time period will aid in better decision making and future planning.
Introduction The purpose of this report is to undertake financial analysis of the position of the three major supermarket chains (Tesco plc, Morrison plc and Sainsbury plc) in the UK, using the financial tools such as Horizontal and Vertical Analysis and Ratio Analysis. The calculations done are considering the figures from the income statement and balance sheet of these three companies for the last 2 years (2008 & 2007). Doing these calculations is an effort to find out the current position and if any forecast on their performance. Tesco Plc *Interpreting the Horizontal and Vertical *Analysis The balance sheet’s horizontal analysis reveals the first worrying statistics about the company- the fact that stock level has increased by 25.84% in the year, even though net assets have increased by only 12.59%. The vertical analysis of the balance sheet again highlights the increase in amount of stock held by the company at the end of 2008 and increase in current assets. Interpreting the Ratio Analysis By looking at the ROCE* ratio it is clear that the business has not generated any higher return in the period 2007-2008. Though there is a marginal decrease in the returns (0.14% from 0.16%), however when compared with returns of other competitors Tesco plc has performed much better. Drop in asset utilisation ratio in the year 2008 indicates that the company did not use its assets efficiently to generate sales. As a result profit margin dropped down to 5.91% in 2008 from 6.21% in the year 2007. The Acid test ratio also doesn’t meet the ‘ideal’ ratio of 1:1. In other words Tesco had only 38p of quickly realisable assets to meet each £1 of current liabilities. Stock turn shows the effect of increased stock at the end of 2008 as it s...
Evaluating a company’s financial condition can be done by looking at its profitability or its ability to satisfy long-term commitments. These measures can be viewed through an analysis of a company’s financial statements, including the balance sheet and income statement. This paper will look at the status of Scholastic Company’s (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial ratio calculations and an analysis of the notable trends. It will also discuss the profitability and long-term borrowing positions of the firms discussed.
Disclosures are another part in the financial statements, and are required by the Financial Accounting Standards Board. The purpose of the disclosure is to explain recognized items and provided relevant measures of items that are not measured on the financial statement as well as describing unrecognized items and provides a useful measurement for those items. What the disclosure does is provide d information to help the investor as...
The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ Profitability - This information comes from the Profit and Loss account. Were we can compare this year's profit with the previous years.
Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes and other duties declared and paid by a company.
Financial statements are very important for manufacturing company as it helps in assessing the financial condition of the company. It also helps the manufacturing company in making financial plans. A manufacturing company can make a better decision regarding a product by analyzing the financial statement. Through financial statements a company can decide whether it have to increase its sales or
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.
Financial statement have to major uses in financial analysis first, they one used to present a historical recover of the firm’s financial development when competed over a number of years a trained analyst can determine important financial factors that have in the ended the growth and Current assets of the firm. Second, they are used to here cast a course of action for the firm. A performance financial statement is prepared for a future period. It is the financial manager’s estimate of the firm’s future performance.
The company can use the annual report to promote their public image and allow the public to know more about them. This will help the company to grow their popularity and will be well-known.
Undoubtedly Management Accounting is a great tool for any kind of Business Organization. It helps to make management reports and accounts that provide financial and statistical information to managers that helps them to take decisions. It basically helps to evaluate the performance of a business organization. In this assignment we are going to discuss management accounting and the branches of management accounting systems. The methods of management accounting reporting will be broadly discussed and also interpreting the given data of Dell to prepare basic financial reports and forecasting budgets in the context of Dell. Dell is an American multinational