Financial Statements and Stakeholders Free Essays

Introduction In this report six different users of financial statements will be identified. Each user group will be described and the reasons why they use financial statements will be examined. Analysis and calculations of relevant and specific financial information will be performed to reflect the performance of the company, and how this is seen by the different stakeholder groups. We will write a custom essay sample on Financial Statements and Stakeholders or any similar topic only for you Order Now The two companies I have chosen are J.Sainsbury plc and WM Morrison’s Supermarkets plc, hereafter known as Sainsbury’s and Morrison’s. This is because these two companies are two which have a large number of stakeholders who will be affected by the company’s financial statements. Sainsbury’s and Morrison’s also compete within the same sector and thus the financial statements and companies are obviously comparable, this will help with benchmarking to analyse the data .(Mclaney and Atril.2008). This will help to determine, along with the relevant analysis and calculations, which stakeholders will be more pleased with the financial statements out of the two supermarkets. As of May 2014, Morrison’s had 11% of the market, and Sainsbury’s 16.6% (Garner.2014). The financial statements we will be assessing are income statements and balance sheets. These are the two statements which are of greatest importance to the majority of stakeholders. I have attained the most recent financial statements from the two companies from their recent annual reports. This report will use financial ratio’s to assess the profitability, efficiency, Liquidity, Financial Gearing and Investment potential within Morrison’s and Sainsbury’s.(Mclaney and Atril.2008.). Boards of Directors The owners and boards of directors of both Sainsbury’s and Morrison’s would use financial statements to review the performance of management and assess the overall performance of the company. For the smooth operation of the organisation, the managers and owners also need the financial reports to make essential business decisions. For example the current debt to equity ratio is important in deciding the amount of long term capital that would be required to be raised for making certain business decisions. This can be determined by using the following formula. Total liabilities Total assets x 100% Sainsbury’s (?m)Morrison’s (?m) 10535 16540 x 100% =63.7% 6037 10792 x 100% = 55.9% As can be seen Sainsbury’s debt to equity ratio is 63.7% with Morrison’s at 55.9%, a difference of 7.8%. This ratio is one of the key set of 10 identified by Laurent (2006) in being able to predict a firms performance. This thus means that they are financing their growth more by debt than they are by their current assets than Morrison’s. However this is not necessarily a bad thing, and this could mean that they growing more than if they did not utilise this outside financing. If this increases earnings by a greater amount than the debt interest that would be incurred then it is definitely beneficial to do so, thus the board would be pleased with what they have seen from the financial statements. Shareholders Shareholders receive a set of financial statements as a right, and are the only stakeholders to do so. The shareholders interest will be in what the company is doing with the money they have invested, and whether it is making a profit or loss. If it is profitable, they will want a return in the form of dividends, so they will be concerned with the level of dividends the company is paying out year on year and the potential for future profits and dividends. If profit levels and dividend pay-outs diminish noticeably, or if no dividends are paid out because the company has made a loss, then they will consider selling their shares and investing in something else which will give them a higher return. Obviously operating profit margin is also needed to measure overall performance and this can be calculated as follows. Profit before interest and tax Sales x 100% Sainsbury’s (?m) Morrison’s (?m) 1009 23949 x 100% =4.2% (95) 17680 x 100% =-0.5% Supermarkets usually operate at low operating margins, so these results are not wholly surprising (McLaney and Attril.2008) Morrison’s extremely poor performance this year is down to incredibly high administrative costs, this could be seen as possibly due to a new initiative or launch of service which required high costs to get this off the ground, and therefore this may pay dividends in the future. Thus it will be imperative to see how they will perform in the next year without these high administrative costs. Sainsbury’s operating profit margin can be compared with the previous year to see how they are progressing, and this was 3.8%. Thus their net profit margin has increased and the shareholders will be pleased with this performance as it could increase shareholder dividends. Banks Banks are extremely interested in a companies such as Sainsbury’s or Morrison’s financial statements. For example if a company has an overdraft or a bank loan, then the banks need to make sure that a company can afford to pay these loans it owes off (Palepu and Healy.2008). If a company is applying for a loan, similar considerations apply, although the bank would in addition insist on looking at more up to date information than the last set of statutory accounts as these could be rather out of date. The banks would calculate this by with the acid test ratio. This shows the company’s ability to pay its current liabilities from liquid assets. This is calculated as follows. Current assets less inventory Current liabilities Sainsbury’s (?m) Morrison’s (?m) 4362-1005 6765 = 0.5 : 1 1430-852 2873 = 0.2 : 1 Supermarkets by nature have very low acid test ratio scores due to some stock on their shelves not selling as quickly as they would like. However Morrison’s at 0.2:1 is much lower than the company would be wanting to have, whereas Sainsbury’s at 0.5:1 is relatively healthy for a company that operates as a supermarket. Creditors A company’s trade creditors and suppliers will also obviously be interested in a companies financial statements such as the balance sheet and income statement. Such stakeholders will be concerned with whether the company can pay regularly for its purchases from them, so they will have an eye to the cash position of the company – its liquidity. They will also be interested consequently in any items in the accounts which may affect this liquidity such as bank overdrafts or loans, as such items would usually indicate cash problems in the company which may render it an insecure buyer for the future. Creditors are also extremely interested in creditor days. This is the average payment period to payables expressed in days. This can be calculated by the following formula. Trade payables x 365 Purchases Sainsbury’s (?m)Morrison’s (?m) 2272 x 365 16606 = 50 days 2692 x 365 22562 = 44 days As can be seen, Sainsbury’s creditors will be the more pleased out of the two sets of stakeholders for both supermarkets. This is because they are paid on average six days faster than Morrison’s creditors and thus will have a more efficient flow of cash. This could mean building a better relationship with these creditors. However Morrison’s may also be pleased as it means they are able to hold on to this cash for longer and maximise cash flow with longer creditor days payable. Trade debtors/customers. These persons would be interested in the company’s likely continuance into the future as a secure source of supply, and so would look for any items affecting this, such as production difficulties, sales price increases etc. These will also be most interested in debtor (receivables) days, this is the Average collection period for receivables expressed in days. It is calculated as follows. Trade receivables x 365 Sales Revenue Sainsbury’s (?m)Morrison’s (?m) 433 x 365316 x 365 23949 = 7 days17680 = 7 days Here both Sainsbury’s and Morrison’s debtors will be equally as pleased when analysing the financial accounts for both of these companies. This is because they both receive a similar amount of time in which to pay their debts. Equally both of the supermarket chains will be relatively pleased with this as they will be in a similar position to each other in receiving the money from debtors. Similarly this is much shorter than the time it takes both to pay their creditors, and thus their cash flow efficiency will be maximised. Competitors Competitors will also be interested in the financial results of a rival in the same industry sector to see whether its results are better or worse than its own, whether it has brought new products to the market place and how these have been doing (Palepu and Healy.2008). Competitors of Sainsbury’s such as Asda and Tesco may also be interested to compare things such as costs of goods on the income statement to compare this to their own performance. A rival’s bad result, when its own is good, would enhance performance in the eyes of its own shareholders. A rival’s similar adverse performance may reflect that both are hit by the same business factors. In the retail business something that both Morrison’s and Sainsbury’s would be interested in seeing is how their inventories turnover period compares with that of their rivals. It can be calculated as follows. Inventories x 365 Cost of sales* Sainsbury’s Morrison’s 1005 x 365852 x 365 22562 = 17 days 16062 = 20 days Here Sainsbury’s will have the more pleased boards of the two supermarkets when analysing their competitors in terms of inventory turnover. This is because on average they manage to turn over their inventory 3 days quicker than Morrison’s. This demonstrates that they have a more efficient stock system and are selling their products at a faster rate, which could lead to a better overall performance. Conclusion As can be seen, a range of different stakeholders have reason to be interested in a companies financial statements. These stakeholders range from being interested in their own personal gain, those such as Shareholders, as well as being interested in how it impacts upon other stakeholders, through the analysis of both debtor days and creditor days. Financial reports are important for all different stakeholders so they can decide whether or not it is beneficial to be involved with a certain company, they are always interested in the going concern of the company. It is important for numerous reasons that these stakeholders have access to the accounts to gain clarity and for the continuation of the working relationship with companies such as Sainsbury’s and Morrison’s. It is therefore important that the accounting is accurate and up to standards for these different stakeholders of financial statements, it is also useful for comparison of companies and as can be seen from the analysis Sainsbury’s stakeholders will be more pleased with the financial statements than Morrison’s. Bibliography Garner, E. (2014). Kantar, UK grocery growth at lowest level for 11 years, [Online] http://uk.kantar.com/consumer/shoppers/070514-kantar-worldpanel-uk-grocery-share-data-april-2014/ [Accessed online on 01/11/2014] J.Sainsbury’s plc, 2014. Annual Report and accounts 2013-2014. [Online]. http://www.j-sainsbury.co.uk/media/2064053/sainsbury_s_annual_report_and_ accounts_ 13-14.pdf. 2014. [Accessed online on 01/11/2014] Laurent, C.R. Improving the efficiency and effectiveness of financial ratio analysis. Journal of Business Finance and Accounting. [Online] Vol 6(3). 2006. p401-413. McLaney, E. J., Atrill. P. (2008). Accounting and finance : an introduction. Fourth edition. Harlow: Pearson. Palepu, K. Healy, P. (2008) Business Analysis and Valuation: Using Financial Statements. Mason:Thomson Learning WM Morrison’s Supermarkets plc , 2014. Morrison’s Annual Report 13-14 [Online]. http://annualreport.marksandspencer.com/downloads/MS_AR2014_Annual_Report.pdf [Accessed online on 01/11/2014] How to cite Financial Statements and Stakeholders, Essay examples

Keys to Writing an Effective Proposal Essay Sample free essay sample

Study design Subjects Inclusion/exclusion standards Sampling Recruitment plans Method of assignment to analyze groups Data aggregation variables: results. forecasters. confounders measures/instruments processs Intervention Statistical considerations sample size informations analysis Ethical Considerations Work Plan Overall Quality of the Study Good research inquiry Appropriate research design Rigorous and executable methods Qualified research squad Quality of the Proposal Informative rubric Self-sufficient and converting abstract Clear research inquiries Scholarly and pertinent background and principle Relevant old work Appropriate population and sample Appropriate measuring and intercession methods Quality control Adequate sample size Sound analysis program Ethical issues good addressed Tight budget Realistic timetable Quality of the Presentation Clear. concise. well-organized Helpful tabular array of contents and subheadings Good conventional diagrams and tabular arraies Neat and free of mistakes Adapted from Hulley A ; Cummingss Literature Review A criticalsum-up of research on a subject of involvement. by and large preparedto put a research job in context or to place spreads and failings inprior surveies so as to warrant a new probe. We will write a custom essay sample on Keys to Writing an Effective Proposal Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Keys to Success Thorough and complete Logical Recent Original research Primary beginnings Critical assessment Building instance for new survey Study Rationale Has the survey been done before? Will the survey benefit patients advance understanding or influence policy? Survey Problem ( Study Purpose ) Broad statement bespeaking the ends of the undertaking. Examples: What are jobs related to unplanned caesarean delivery bringings? Is colonoscopy accessible to all Canadian wellness attention consumers? Keies to Success Clear Relevant Logical Documented Objectives/Research Questions/Hypotheses Identifying the research job and developing a inquiry to be answeredare the first stairss in the research procedure. The research inquiry willguide the balance of the design procedure. Research Objectives A clear statement of the specific intents of the survey. which identifiesthe key survey variables and their possible interrelatednesss and thenature of the population of involvement. Research Question The specific intent stated in the signifier of a inquiry. Hypotheses A probationary anticipation or account of the relationship between two ormore variables. A anticipation of the reply to the research inquiry. Examples: The intent of this survey is to find the major physiologic psychosocial and lifestyle concerns of adult females two hebdomads and eight weeksafter an unplanned cesarian bringing. Does the disposal of analgetic by nurses vs. by patients themselvesaffect pain strength during the first postoperative recovery twenty-four hours in olderadults? Patients shacking in rural countries of Alberta are less likely than urbanpatients to undergo a colonoscopy within 18 months of a healing resectionfor colorectal malignant neoplastic disease. Functions Provide referees with a clear image of what you plan to carry through. Show the referees that you have a clear image of what you want toaccomplish. Form the foundation for the remainder of the proposal. Will be used to measure the adequacy/appropriateness of the study’s proposedmethods. Keies to Success Clear and consistent. Key concepts/constructs identified. Includes the independent and dependent variables ( if applicable ) . Measurable. Hypotheses clearly predict a relationship between variables.

Debut Albums and Grendel free essay sample

Arles, the Ham Describe Grenades mother and his relationships with her Greened mother Is an ugly, smelly beast who Greened resents and yet loves In a dependent, childish way. She cannot speak; she tries to communicate with his son by caressing and holding him. And at times she would go too far and suffocated him. She helpless at times she has to wait for him to bring her food, but when Greened needs her, he cries like baby, and usually she saves him. She is also fierce and terrifying.Greened sets himself apart from his mother according to him she does not hind coherently. He believes he above her. He thinks of her as a fool. Life-bloated, baffled, long-suffering, hag. Guilty, she Imagines, of some unremembered, perhaps ancestral crime. Chapter 2 Taurus, the Bull Explain what Greened mean when says, l create the whole universe, blink by blink. When Greened says, I create the whole universe, blink by blink he means that he Is the only one who exist In the world. We will write a custom essay sample on Debut Albums and Grendel or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page That everything changes according to the way he see things and no one else.Greened is starting to be aware of the fact that he does to need the rest of the world but himself to survive. When he was hanging on the tree no one helped not even his own mother; thats when he says, l understood that, finally and absolutely, I alone exist. Through his mother did safe him deep down inside he alone and wishes he wasnt alone. Chapter 3 Gemini, the Twins Why is Greened so impressed and affected by the shaper? Why does he fear Shaper Greened is so impressed by the shaper because his words are poetic. They have the ability to change persuade.Greened knows the truth yet when he hears the shapers ales, he questions his very own perception of the truth. The shaper changes dry sticks to gold. He knows that the shaper Is lying, but his stories are addictive. Greened knows that Hoarders men are aware of the truth, but choose to believe the shaper Instead. He fears her because he grows confused and panicky. Sharper Is getting to him he still finds their power incredibly seductive, and he in turn wishes he had something greater to strive for and believe in. Debut Albums and Greened By Johanna Chapter 1 Aries, the HamGreened mother is an ugly, smelly beast who Greened resents and yet loves in a baffled, long-suffering, hag. Guilty, she imagines, of some unremembered, perhaps When Greened says, l create the whole universe, blink by blink he means that he is the only one who exist in the world. That everything changes according to the way he inside he alone and wishes he wasnt alone. Sticks to gold. He knows that the shaper is lying, but his stories are addictive. Shaper instead. He fears her because he grows confused and panicky.

Definition of Meteor Shower

College Admission Essay Topics

College Admission Essay Topics College Admission Essay Topics College admission custom essay writing topics may be different, but there are some standard topics requested by all colleges and universities. To understand the essence of good college essay topics read the following tips and you will improve your own writing as well as learn a lot of new about college admission essay writing. For example, you may be asked to write your essay about the person you respect: 'What person, literary character, historical personality or work of art (music, etc.) has had a significant influence on you? Please, tell more about this'. The answer to this essay question allows you to clarify who you are, what your influences are have, what your personality is, etc. Students make a mistake by thinking that this essay question relates to a specific person. Writing admission essay the students describe in detail those who had had a significant impact on their life, going into details without balancing these people with themselves. It does not matter who was your uncle or imaginary character! It is more important to show how this person has shaped your personality. You should remain focused only your personality, not your uncle's! Full attention should be attached to your traits and life experiences. Admission Essay Help Admission essay writing helps to know about your life and values. If you want to present yourself as a leader, you need to tell about the situation when your leadership skills were applied. Sure, it is possible to learn a lot about the person from the way he describes his/her friends. If you doubt this assumption, try to compare the impression of those who admire energetic sportsman and those for who talented, but passive scientists are the most admirable people. Nobody has the right to say who is better and who is worse because all people are different and there perceptions are different as well. Thus, there are no right or wrong answers to include into your admission essay writing. Admission committee attaches primary importance not to the way to characterize the person while writing an essay, but rather they are interested in the reason why you have chosen the specific person as a role model. In other words, do not choose a famous person for your college admission essay writing. Mother Teresa, as a role model, will not impress admission committee. Your choice of college admission essay topics should bring the desired result. Please keep this rule in mind. Most of the applicants talk about their parents while writing admission essay. If you are talking about your father, of course, you can say a lot, but remember that your essay should stand out from the general mass. The above tips are written by one of experts to assist you with college admission essay writing. You are welcome to ask our writers for custom admission essay writing or editing and we will produce an impressive college admission essay for you: Read more: Writers of Term Papers Term Papers Medieval Knights College Term Paper 3,000 Words Term Paper SFU Topics for a Research Paper

Case analysis Essay Example | Topics and Well Written Essays - 500 words - 8

Case analysis - Essay Example Since the company used to deal with more than one currency, then the exchange rate proved to be a challenge. Foreign currency rates are never constant; they fluctuate on a daily basis due to the interaction of a variety of elements that are beyond the scope of this case analysis. Delays in ordering and payment together with exchange rate fluctuations pose a significant risk for a company like Alliance that deals with more than one currency. Although it is uncertain, it could be argued that with exchange rate could fluctuate in either direction thus providing some room for profitability. The other problem that Alliance faced was the fact that they have been in operation for only three years. Some of the company is administrative and supply chain processes, such as those for equipment procurement and generation of price quotations require improvement and formalization. This can be attributed to the fact that they have only been in operation for quite a short period (Aleshaiway, 2005). The customer can participate by modifying the price quotation process in a bid to mitigate the foreign exchange risk. This policy can be implemented through a number of various ways including, changing the acceptance period (30 days) and changing the required amount of deposits to be made. A stipulation is saying that the final charges would be based on the exchange rate at the time of project completion should be included in the original contract. To add to the above strategy, a review of the internal processes related to cash management (including collection from customers and payment of suppliers), price quotations, and equipment procurement. Although there are aspects of the overall process that are dependent on schedules and operations of others such us completion of projects, there are small issues within that process that could bring about risk mitigation of exchange rates. The company

Global Decision Support Essay Example | Topics and Well Written Essays - 1250 words

Global Decision Support - Essay Example That DSS tools are effective in managerial decision making processes implies managers must improve the tools’ capacities to work efficiently to yield the right information structure (Antunes et al., 2007). Thus the generation, design, implementation, interpretation and implementation of DSS tools should be done efficiently and competently to solve decision-making problems. A DSS system should thus serve as a competitive advantage that helps an organization to tackle decision-making problems based on consistent information and information structure and win markets. Background Generally, a Decision Support System (DSS) is a compilation of amalgamated software and hardware applications (tools, techniques, and models) used by an organization as the benchmark of decision making process. Since decision making requires the analysis of data, a DSS should be data-driven. The concepts of Business Intelligence (BI), Organizational Intelligence (OI), and Competitive Intelligence (CI), whi ch encompass the processes, methodologies, and reporting tools central to decision support systems to report, monitor, and analyze data are also important in DSS and decision making (Antunes et al., 2007). This paper reviews literatures on the benefits and buy-in of global DSS, the processes of implementing global DSS, the ethical issues related to global DSS, and the possible ways by which global DSS may increase global partners. A global Decision Support System (GDSS) is a computer-based interactive system used by teams from different organizations, countries or regions to make decisions, solve problems, and make choices. Specifically, global DSS aims to support groups in the analysis of problem situations and in the performance of collective decision-making tasks. From its name global DSS is quite descriptive and is a mixture of systems that uses intricate communications infrastructures and quantitative models to support decision-making processes. Literature Review As a consequen ce of increased globalization and heightened competition in the business world, entrepreneurs have resorted to using the latest technologies to make vital business decisions (Lynch, 1994). Similarly, a lot of literary work has focused on decision making and its various techniques and tools such as DSS. According to most authors, there are numerous aspects of DSS that organizations and managers should consider when venturing into global DSS. Global DSS benefits, implementation, and ethical issues are among the most extensively covered aspects of DSS in literatures. Businesses enjoy numerous benefits by implementing global DSS. For instance, for quite a long time, organizations have struggled to find an electronic commercial application that would allow them to jointly decode and interpret information to allow them to make use of these decision making tools in the accompaniment of other organizations or business partners (Lynch, 1994). The first among the many benefits of global DSS i s that it allows organizations to orient their resources towards providing managers with all the required information for strategic decision making. Global DSS offers organizations several other capabilities, including support for decision-making processes in ill-structured situations that lack full computerization and requires computer-based assistance for voluminous data accessibility and processing (Lynch, 1994). Global DSS also helps in the rapid acquisition of quantity and quality results for reaching decision by supporting the various stages of