¶ … Financial Measures and Management Practices
New business leaders, aspiring entrepreneurs and even experienced professionals are all confronted with a bewildering array of financial measures that are commonly used to reflect how well companies are performing. Moreover, there are a number of management tools that are available that can be used to evaluate these financial measures provided that the practitioner understands what they mean and how they can be used. To this end, this paper provides a review of the relevant juried and scholarly literature concerning various financial measures and management practices, followed by a summary of the research and important findings in the conclusion.
Review and Discussion
How do stock prices and dividends reflect the value of the firm?
Although they are not infallible of course, stock prices provide a general reflection of the fundamental value of a firm that includes the present discounted value of future firm earnings (Carlstrom, Fuerst & Ioannidou, 2002). By contrast, the payment of stock dividends reflects value in a firm because these "represent distributions paid out by the company to stockholders based on the outstanding shares (issued shares less treasury shares)" (Siegel & Shim, 2001, p. 152).
What does a statement of cash flows tell us about the short- and long-term prospects of the firm?
While cash flows are continuous and "the action never stops," statements of cash flow provide a periodic "snapshot" of how much money is being spent and where it is going. In this regard, Siciliano (2003) reports that, "There is a continuous flow of action captured in the company's income statement and its statement of cash flow. Accountants provide an income statement and statement of cash flow adding up the changes that happened during the month-long activity, and a balance sheet that shows where everything was on the last day of the month" (p. 19).
How does an outside review use a statement of cash flows and other financial statements to assess the viability of the firm?
Because all investors are not equally informed concerning a firm's financial viability, cash flows and other financial statements provide a means of ensuring the fiscal health of the firm (Carlstrom et al., 2002). Among other financial indicators, financial analysts frequently include the following in their assessment...
Financial Resource Management Reaching a financial decision regarding heath care services All forms of industries deemed financial management as expressive in origin till the 1960's. Its basic and sole role was to ensure financing for completing the business's operatives and functions. The department for business planning or marketing would project a net total for meeting the services and meeting daily demands; managers would calculate the assets required to complete a given project
2% of the population is younger than 14; 58.2% is aged between 15 and 64 and 3.6% is over the age of 65. This affect Giam's in a positive way as most of the population is properly aged to work The median age of the population is 20.2 years, with 19.9 years for men and 20.4 years for women The birth rate is of 29.85 births per 1000 individuals The death rate is
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The second phase would include using these metrics in order to gather the appropriate results. Finally, the third phase implies interpreting those results and using them to gain a competitive strategic advantage on the market. The phase dealing with the development of qualitative and quantitative metrics brings about some of the usual challenges in terms of measuring things: what metrics best reflect the performance of a certain activity? In the
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