Ajay_Maheshwari_500_Module_6_Nov24

Ajay_Maheshwari_500_Module_6_Nov24 - Module 6 1 Module 6:...

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Unformatted text preview: Module 6 1 Module 6: Controlling MBA in Finance (2010) Module 6 2 Module 6 3 Abstract Module 6 4 Module 6 5 Response to the first question defines Ratio analysis and some important Liquidity Analysis Ratios, Profitability Analysis Ratios, Activity Analysis Ratios, Capital Structure Analysis Ratios and Capital Market Analysis Ratios. Response to the second question shows my views on MacGregor's Theory X and Theory Y. Response to third question discusses about the positive and negative issues of automation impacting our society with examples. Response to the fourth question discusses about the General Motors rise to fall and then restructuring and placing proper controls to ensure the future profitability of GM. Response to fifth question defines and compare Creativity and Innovation with a personal example of either creativity or innovation in my organization. Module 6 6 Module 5 Deliverables Assignments: Essay Questions Essay Question 1 What is ratio analysis? What ratios do you think are most valuable to managers in your company or an organization you know about? Discuss in scholarly detail. Ratio analysis is an attempt to express the relationship between two or more accounts or variables in a simpler, more comprehensive way. It is a tool used by individuals to conduct a quantitative analysis of information in a company's financial statements. Ratios are usually derived from financial statements as a basis of comparison, evaluation, and prediction. They are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratios provide a way to evaluate a companys performance or financial well-being by a standard comparison of items on the companys financial statements, rather than a direct reading of the financial figures. They are used to evaluate aspects of profitability, solvency, and liquidity. Financial ratios for industries (or industry norms) reflect the average value for a particular type of business. Module 6 7 Some of the ratios that I think are most valuable for managers are as follows: Liquidity Analysis Ratios : Measure the availability of cash to pay debt. Current Assets Current Ratio =------------------------ Current Liabilities Quick Assets Quick Ratio = ---------------------- Current Liabilities Net Working Capital Net Working Capital Ratio = -------------------------- Total Assets Profitability Analysis Ratios : Measure the company's use of its assets and control of...
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Ajay_Maheshwari_500_Module_6_Nov24 - Module 6 1 Module 6:...

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