Portfolio and Risk Management Business Plan

Open, View, and/or
Download this Document

Total Length: 389 words ( 1 double-spaced pages)

Total Sources: 1

1). Describe and summarize the financial ratios used to analyze a company.There are a wide range of financial ratios that are often deployed in the analysis of financial statements. These are inclusive of, but they are not limited to; profitability ratios, financial leverage ratios, liquidity ratios, etc. Whereas profitability ratios (such as ‘return on equity’ and ‘return on assets’) come in handy in the assessment of the firm’s success in profit generation, financial leverage ratios (such as ‘debt-to-equity ratio’ and ‘debt ratio’) are crucial indicators of a company’s long-term solvency (Melicher and Norton, 2019). On the other hand, liquidity ratios (such as ‘cash ratio’ and ‘current ratio’) could help in the assessment of the ability of a business enterprise to cover short-term financial obligations (Melicher and Norton, 2019).2). What is the goal of financial accounting?The main goal of financial accounting, as Graham (2020) point out, is the presentation of a business’ accounting information in formats that are meaningful to diverse users (especially external users) such as investors, government regulatory agencies, creditors etc. This could be accomplished via the utilization of the relevant financial statements, with the information in this case capturing a specific time period, i.e. one financial year.

Stuck Writing Your "Portfolio and Risk Management" Business Plan?

View All Our Example Portfolio and Risk Management Business Plan

Have A Custom Example Essay Written

3). Assume you are interested in assessing a firm\\\'s profitability and level of debt, which financial statement(s) would you use?The financial statements that would come in handy in one’s assessment of the profitability as well as debt level of the company are the income statement and the balance sheet. For instance, in the computation of return on equity (a profitability ratio), one would ordinarily need the net income (to be found in the income statement) and shareholder equity (to be found in the balance sheet). On the other hand, to compute debt-to-equity ratio (a financial leverage ratio), one would need total debt and total assets (both are found in balance sheet).4). How are financial strategy and financial plans linked together?To a large extent, financial strategy relates to the tactical utilization of the organizational resources in efforts to achieve certain objectives. On the other hand, financial plans are more about budgeting and development of financial projections. They are, thus, interrelated and seek to advance the overall organizational agenda......

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Portfolio And Risk Management" (2022, April 08) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/portfolio-risk-management-2180500

Latest MLA Format (8th edition)

Copy Reference
"Portfolio And Risk Management" 08 April 2022. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/portfolio-risk-management-2180500>

Latest Chicago Format (16th edition)

Copy Reference
"Portfolio And Risk Management", 08 April 2022, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/portfolio-risk-management-2180500
   

Open, View, and/or
Download this Document
order custom essay example