1.1 INTRODUCTION TO THE STUDY
Asset Management involves the corresponding of costs, opportunities and risks against the desired performance of assets, to achieve the organizational objectives. This harmonizing power need to be considered over different time frames. Asset also enables an organization to examine the need for, and performance of, assets and asset systems at various levels. Additionally, it enable the application of analytical approaches towards managing an asset over the different stages of its life cycle.
Asset Management is the knack and discipline of creation the right decisions and optimizing the delivery of value. A well-known objective is to optimize the whole life cost of assets but there may be other
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An asset is anything of value that can be converted into cash. Assets are owned by individuals, businesses and governments.
Definition of asset management.
Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets such as buildings and to intangible concepts such as intellectual property and goodwill. Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.
1.3 NEED OF THE STUDY
Asset Management plays an imperative position in achieving the firms objectives. These assets are not adaptable or not liquid able over a period of time. The owner’s money and long term liability are invested in Asset Management.
If firms Assets are inactive and not utilized correctly it affects the long-term sustainability of the firm, which may involve liquidity and solvency and productivity positions of the
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The revise is conduct to estimate the Asset Management revenue of coca cola.
To examine and evaluate that whether the firms Asset Management measures are generating adequate takings to the firm.
To appraise that if Asset Management are liquidate and what fraction of it will contribute for the payment of owner fund and long-term obligations.
1.5 SCOPE OF THE STUDY
The project is on Asset Management in coca cola, strained from annual reports of the company. The subject matter is partial to Asset Management, its scrutiny and its performance valuation but not to any other areas of accounting, corporate, marketing and financial matters.
1.6 METHODOLOGY ADOPTED
The statistics used for the examination and explanation from yearly information of the firm i.e., secondary basis of data. Ratio analysis is used for learn purpose.The project is obtainable by tables, graphs and with their interpretations. No appraisal is undertaken or surveillance study is conducted for evaluating Asset Management appearance of the firm.
Source of data collection.
The information needed for this project is composed from the following
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
... organization's management. The ratios were broken down into classifications of liquidity and asset utilization, debt and interest coverage, profitability and market-based ratios.
Lastly, the total asset turnover compares total operating revenue to total assets. The process entails the more revenues an organization can generate per dollars of assets, the more efficient it is, other things being equal, (Finkler, S.A., Ward, D.M. & Calabrese, I.D., 2013). Furthermore, by dividing the amount of the revenue from the year by total assets the ratio will show the amount of revenue for every amount in assets. This ratio method also useful and can help determine the cause and if there are ways to use assets more efficiently and generate more revenue.
The company is threatened by the financial losses and in its inability to remain liquid, solvent and profitable
Talking specifically, executives of AssetOne could not make decision on critical things quickly since AssetOne was too formalized. Thus, AssetOne is too centralized. For example, acquired firm did not perform well after acquisition due to centralization. Previously, TaurusBank was giving investment fund division freedom to launch new products without approval of executive team, which was not found in AssetOne’s culture.
The increasing trend in the quick ratio from 4.7 to 7.7 during 2013 – 2014 shows that its quick assets are more as compared to its current liabilities. This shows that the firm is easily paying off its current liabilities. Similarly, the increasing trend in the current ratio reflects that the firm is easily paying off its current debts by using profits generated from its current operations. Likewise, the increasing trend in the asset turnover ratio means that the firm is using its assets productively.
...To check how successful it has been, we calculate debtor collection period ratio. (Dyson, 2004) Fixed Asset turnover: In this ratio, we seek the amount of sales that can be generated (or the amount of fixed assets necessary to achieve a level of sales) from a given level of fixed assets. (Klein, 1998) Total asset turnover: This ratio determines that how efficiently a firm is utilizing its assets. If the asset turnover ratio is high, the firm is using its assets effectively in generating sales. If this ratio is low, the firm may not be using its assets efficiently and shall either increase sales or eliminate some of the existing assets. (Argenti, 2002) Solvency Ratio Gearing: Gearing reflects the relationship between a company’s equity capital (ordinary shares and reserves) and its other form of long-term funding (preference share, debenture, etc.) (Black, 2000)
By automating the asset tracking processes, our people will be freed up to think and plan as opposed to do and react. In addition, our management will have the accurate and timely information they need to make strategic and tactical asset procurement, tracking and retirement decisions. Works Cited CSC. -. (2010). The 'Standard' of the 'Standard'.
Intangible assets are assets that cannot be physically held, such as copyrights, brand names, trademarks, goodwill, and patents. There are two kinds of intangible assets, definite and indefinite. Definite assets have a useful life and would be amortized ever year to decrease the value, such as trademarks and patents. Indefinite do not have a definite life time and would last as long as the company stays in business. Definite assets need to be amortized based on their useful life by determining the pattern of use for the asset. For example, if a company uses an asset 40% the first year, 30% the next year, and 15% the next 2 years, then it would amortize the value following that pattern. If they do not know the pattern they would use the straight-line
As Hubbard and Beamish (2011, pp. 103-128) stated, Intangible assets are resources which can be hardly identified and valued such as knowledge and...
The following essay will expand on the usefulness and flaws of CAPM and other asset evaluation frameworks and in the end showing that despite all the evidence against CAPM it is still a useful model for determining asset investments.
Xiong, J. X., Ibbotson, R. G., Idzorek, T. M., & Chen, P. (2010). The Equal Importance of Asset
The Coca-Cola company was founded in 1886 by John Pemberton, a Civil War veteran and Atlanta pharmacist. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Jacobs’ Pharmacy put it on sale for five cents a glass and named it Coca-Cola. This “inspired curiosity” has now grown to be the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. In 1906 Coca-Cola opened bottling plants in Canada, Cuba, and Panama. Today they produce nearly 400 brands in over 200 countries. More than 70% of their income comes from outside the U.S. (1). This paper will focus on an analysis of operations of the statement of cash flow reports and a vertical and horizontal analysis of the consolidated balance sheets. Also an analysis of the global financial condition of the Coca-Cola Company and the value of goodwill and other intangible assets will be discussed.
An asset can be defined as any item that has a value to an organisation over time. Items such as buildings, physical plant and equipment and computer software are normally regarded as assets.
There are many techniques used to manage cash including, the nature of asset growth, controlling assets, patterns of financing, the financing decision, a decision process and shifts in asset structure. For any company the growth of asset results in a growth in wealth if managed effectively. The typical firm usually forecast the rate of sales to ensure that the production of goods match sales so there is not an overflow if inventory. As a company expands and produces more items they will acquire permanent current assets. Permanent current assets can be described as a constant inventory of items because it is almost impossible to predict the market and the demands of the consumer.