How to Use a Company’s Annual Report to Ace Your Interview
If you don't take the time to get know a company, you many not have a future there. Your interviewer will ask you why are you looking for this particular position and why are you looking at ABC, Inc. Start by telling him or her that you have read ABC's current sales record "in their annual report."
Company sales are important even if you are not interviewing for a sales job. If you have reviewed several years of annual reports, you can easily see if the company's sales have gone up or down. Asking questions about the company's sales during an interview scores lots of points because it shows you have done your homework.
You can get ABC, Inc.'s past annual reports directly from the company, the public library or the Internet. The annual report may not tell you how well the company fares within the industry, but it will tell you everything you need to show your interviewer how well you can fit into the company.
Once you obtain a company's past annual reports, review the most recent report first. At the back of the report, you will find the name of the auditor, somebody like Smith and Smith Accounting. Reputable companies use a certified public accountant to show that the accounting methods used in the report conform to "generally accepted accounting principles."
Now turn to the front of the report and find the letter from the chairman of the board, whose personal style will be reflected throughout the report. The director will discuss the direction of the company, so pay attention to how he plans to run things in the future and whether he thinks the future looks positive for growth.
The company's financial growth is very important to both the company and to your salary requirements. You may not want to crunch the numbers yourself, but you will want to understand the balance sheet, the status of the company's finances at a given date. On the left are the assets, all of the organization's valuables. Current assets are those that the company can convert quickly to cash. On the right are the company's liabilities-what they owe. Current liabilities are the company's debts due in one year, paid out of current assets.
Net working capital, is a key figure to watch only if you have several years worth of reports to compare.
Net working capital represents organization’s operating liquidity. In order to compute the net working capital, total current assets are divided from total current liabilities. When there is sufficient excess of current assets over current liabilities, an organization might be considered sufficiently liquid. Another ratio that helps in assessing the operating liquidity of as company is a current ratio. The ratio is calculated by dividing the total current assets over total current liabilities. When the current ratio is high, the organization has enough of current assets to pay for the liabilities. Yet, another mean of calculating the organization’s debt-paying ability is the debt ratio. To calculate the ratio, total liabilities are divided by total assets. The computation gives information on what proportion of organization’s assets is financed by a debt, and what is the entity’s ability to pay for current and long term liabilities. Lower debt ratio is better, because the low liabilities require low debt payments. To be able to lend money, an organization’s current ratio has to fall above a certain level, also the debt ratio cannot rise above a certain threshold. Otherwise, the entity will not be able to lend money or will have to pay high penalties. The following steps can be undertaken by a company to keep the debt ratio within normal
White southerners on the other wanted economic restoration as opposed to newly freed slaves who wanted rudimentary financial freedoms; freedoms that they had never possessed. White southerners wanted the restoration of their labor force, restoration of their land which had largely been destroyed by the Civil War. White's also wanted political power, but it was more about the maintenance of...
The directors need to be able to view the financial performance of the group in order to make relevant and informed decisions. In order to obtain this information the correct procedures, as mentioned, must be followed to ensure that assets are not overstated and liabilities
It outlines the interconnection of a company’s financial and non-financial elements and aims to combine them and show value creation and maintenance. It identifies resources and their effective and responsible usage. It intends to create a dialogue between the shareholders and other stakeholders and provides them with detailed information.
According to Zapata (2014) in criminology, looking at why individuals perpetrate crimes is vital in the continuous debates and arguments of how crime ought to be taken care of and prevented. Numerous theories have been emerged and developed throughout the years, and they keep on being investigated, independently and in combination, as criminologists look for the best solutions in finally minimizing types and levels of crime.
The Quick Ratio shows that the company’s cash and cash equivalents are the highest t...
Crime has been measured in different ways since the earliest days of advanced civilization. Within those attempts to measure crime many people have tried to explain why crime happens, and how criminality has come to be. Today, I will be briefly explaining some of the theories used to study crime and criminality. What I will be evaluating these theories against will be small scale property crime such as theft.
Managing an organization’s financial operation requires a good understanding of the economy and ways to maximize revenue. For an organization to operate on a daily basis, adequate cash flow is required. Poor cash management within an organization might make it hard for the organization to function because there may be shortage of cash in case of inconsistences in the market. In most companies, management is interested in the company 's cash inflows and outflows because these determines the availability of cash necessary to pay its financial obligations. Management also uses this information to determine problems with company’s liquidity, a project’s rate of return or value and the timeliness of cash flows into and out of projects (used as inputs
It should be pres... ... middle of paper ... ... o monitor the health of the company and also to make the right choices. They are the most important users of financial information as without this group using the information properly the company could cease to survive. Bibliography Biz/ed 2004, Accounting [Online], available http://www.bized.ac.uk Duncan Williams 2004, User of Financial Statements, [online], available http://www.duncanwill.co.uk Finance Demon 2004, User of Financial Information, [online], available http://www.financedemon.co.uk Financial Reporting Council 2004, About the FRC [online], available http://www.asb.org.uk Hacker Young Chartered Accountants 2004, Accounts Explained [online], available http://www.account-explained.co.uk Joe Corbett 2004, Class Notes, Borders College, Galashiels
To entice new investors, most companies assemble their financial statements on fine paper with pleasing graphics and photos in an annual report to shareholders, attempting to capture the excitement and culture of the organization in a "marketing brochure" of sorts.
Balance sheets are very important for parties like suppliers, investors, competitors, customers, etc. to know the company’s position, company’s strength and company’s weaknesses. Balance sheets helps to ascertain the amount of capital employed in the business so that we can further calculate different types of ratios. Some important objectives of preparing balance sheets are:
... an important part when it comes to sales for a company because a sales manager directs their salesman as to where they will sell product. Though there are many other jobs in the career field, one of these many jobs to enjoy is being a sales manager. This job position is an exciting, fun job with many duties.
...e financial reports and statements are correct. This auditing will be conducted by auditing department of the organization, even may be done by an independent auditor who is not part of the organization, and sometimes public officials are elected. In case of unmatched consequences the organization need to give explanation on the misrepresentation of wrong statements. Auditors purpose is then to ensure that the misrepresentations are corrected, then maintain accurate, reliable financial documents and statements.
The management of cash is essential to the survival of any organization. Managing an organization’s financial operation requires knowledge of the economy and ways to maximize revenue. For any organization to operate on a daily basis adequate cash flow is required. Without cash management the organization will be unable to function because there is no cash readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle of the company’s operations going.
The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.