Need to refer back to mod 1 slp1 reference organization , then answer questions in a 2 page paper.© BrainMass Inc. brainmass.com September 22, 2018, 2:00 am ad1c9bdddf - https://brainmass.com/business/finance/overall-financial-health-252512
1. How would you assess the overall financial health of your organization? What are good and bad signs, if any, for the future?
There are several ways in which I assess the overall financial health of my organization. First, I see the net profits and examine the percentage with which it has increased or decreased. A rapid increase n financial profit is a positive sign and indicates good financial health.
My company produces and sells machine tools like drills, lathes, milling machines, shaping machines and planing machines. To evaluate its financial health I can also use ratio analysis. For evaluating its profitability, I would use the efficiency ratio, return on capital, return on capital employed, return on assets, return on investment, return on equity, profit margin, operating margin and gross margin. If the profitability ratios are good and compare well with the industry average it will mean a good future for my company.
For evaluating my company's liquidity, I will calculate the current ratio and the quick ratio. To evaluate the effectiveness of my ...
overall financial health is discussed in great detail in this solution.