Assessing Compnay's Financial Health

An assessment of the company’s financial statements will highlight the firm’s management of its risk and opportunities.

The situation they have is before they begin their expansion they want to evaluate the firm’s financial health. Harper & Reiman need to examine on liquidity, profitability, the risk occurring from the debts financing and the rate of return; good sense of sources and use of cash flow these are all great financial situation to examine.

Using the assumptions given in the case, all elements of income statement and balance sheet can be projected for next three years 2010, 2011 and 2012. Sales cycle of the products of the company is such that sales of a particular product increases initially for few years and then starts to decline as the new technology

For current assets for each of the following three years, we are projecting the same percentage of 32% of sales. Assets that are constantly flowing in and out of a organization in the normal course of its business as cash converted into goods and then back into cash show small growth if any, in periods of time. The assets that are expected to last or be in use for less than one year will also show the small growth if any due their usage life expectancy. Because of these facts of our current assets, we will continue to use the projected 32% of sales as in previous years. Because this projection served correctly in previous years, we will again use it for the next three years. This decision is based on past accurateness and the consistency of the company.

This is an analysis of the Province of British Columbia 's financial condition. To determine the province 's financial condition it is important to consider trends and indicators that influence B.C. Trends that have the ability to affect B.C 's financial condition include trends in population and revenue. Furthermore, one must also consider the indicators that can impact the financial condition which include: sustainability, flexibility and vulnerability indicators. Overall, by investigating B.C 's financial relationship with these trends and indicators, this analysis will be able to provide a foundation for understanding the financial condition of the province of British

Stakeholders include but are not limited to employees, investors, and lenders. Therefore, to have a well-informed and well-rounded opinion, it helps to have accurate and up to date financial statements and ratio distribution of the company’s revenue. With the statements, it not only shows the current position of the company but gives insight to determine the best decisions in the running of the company. In regards to lenders, financial statements are the antithesis of the lending criteria used to calculate any monies the company may or may not receive. This calculation is important in estimating the average amount of money that they can lend the organization, and the amount can be paid after a certain period taking into account the rate of interests (Cummings & Worley, 2009).

In the case of Assessing a Company’s Future Financial Health, the case concentration is on SciTronics, a medical device company, performance measures based on the organization’s three primary financial data sources in Exhibit 1 & 2. Utilizing the 9 steps of corporate financial system, I will be able to analyze the financial health of the company to assess whether it will remain balance over the ensuing 3-5 years. The measures are grouped by focusing on “Financial Ratios” such as: 1.) profitability measures, 2) activity measures, and 3) leverage and liquidity measures. Using the financial data sources, I would be able to make recommendations regarding SciTronics 126 million loan request.

Overall the long term solvency position of the company satisfactory and less risky, because managerial policies kept the repercussion of recession ( increase in interest rate) in mind and hence reduced its reliance on debt financing This gives it a secure position from the point of view of long term creditors.

Are they unique to the firm or are they industry wide and may be reflected in lower prices rather than higher profitability?

Managers in various organizations have the role of making informed decisions. Decision are actually future oriented. However, in making possible and well informed decisions, managers need different financial statements that represent events in the past. Decisions are meant to direct future actions and plans of any organization. These statements include the key facts depicting past performance of an entity and therefore enables its users to clearly understand and predict the probable performance of that particular organization not forgetting an entity’s deposition. This is influential

A firm’s ability to analyze its long-term financial health can become a key asset for management as it formulates new, and/or revises old, strategies and goals. The key goal of management is to anticipate future imbalances in its financial systems before a negative result occurs within its financials. As the HBR case describes, “Management must ensure the continuity of the flow of funds to all of its strategically important programs, even in periods of adversity.” This is true in business but also in everyone’s personal life. There will always be ups and downs in life, but everyone as an individual must prepare for these obstacles and continue to

We must analyze past data and provide expected data for the next two years to assess Mark X Company's financial position. Upon reviewing the data, we will make recommendations for both Mark X Company as well as Karen Dennison of Wells Fargo Bank. Senior management needs compelling evidence that shows the current difficulties faced by the company are not permanent.. It must also be accessed if Mark X can retire all of its outstanding loans by the end of 1993. A sensitivity analysis should also be conducted since the future of this company is very dependent on its performance in 1993 and 1994.

Analyzing profitability is one of the most important measures of success for a business. It is critical for the company to increase profitability in order for it to succeed in its industry. For a company to tie ends on short and long-term liabilities, healthy profits are required. Conversely, minimal profits may have a direct correlation with operational inefficiency, leading to short-term debt and long-term insolvency. In reality, no business can endure their market for a significant amount of time without making a profit. Thus, the analysis of a company 's profitability, both current and future, is crucial in the assessment.

Evaluating investment decisions. Designing a firm debt policy. Appraising the financial performance of top management.

Owners and managers need to be able to effectively and efficiently identify how well the company is doing. One way of doing this is to utilize financial statements as well as various ways of conducting an analysis of this information. How money is spent, where it goes and what money is coming in is all valuable information that is not only important to the company. It also provides an overview of data that is used by potential investors and lending institutions as well. It tells them how healthy the company is. It shows profits and stability of an organization and having these statements and reports prepared lend to this viability. The data pulled from these statements can also provide insight that