Financial Management Task

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  • Topic: Financial ratios, Financial ratio, Balance sheet
  • Pages : 6 (1650 words )
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  • Published : October 9, 2012
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FINANCIAL MANAGEMENT
Report PBL Session Task 1

Prepared By :
Windy Ayu Wulandari (023111239)
Maduma Yanti (023111301)
Sean Archi Ago Tondombala (023111288)
Blasius Tito (023111284)

Faculty of Economy
Trisakti University
2012/2013

The start of a task ( step 1 to 5 ) in the first PBL meeting * Step 1 : Kind of the task is strategic task
* Step 2 : Defining the main problems “How to analyze the company’s financial performance to help robert decide the next step to get Everlite back into a sound financial position.”
Difficult words :
* Over the hump : You’ve passed difficult situation
* Into a sound financial position : get back to a good and healthy financial position

* Step 3 : Kind of method : brainstorming
* Step 4 : Analyze the problem => 1. We should know classification of ratio analysis 2. We should use the formulas from chapter 3 to solve the problems 3. We must compare a firm ratios with the history ratios or industry average * Step 5 : Learning Objectives :

1. List the five groups of ratio and identify, calculate, and interpret the key ratios in 2. Compare a firms ratios with those of other firms and analyze a given firms ratios over time (trend analysis) 3. The tendency of ratios to fluctuate over time, which may or may not be prblematic. Explain how they can be influenced by accounting practices and other factors and why they must be used with care. * Step 6 : Gathering information outside the group

Answering from Integrated case
a. Why are ratios useful ? What are the five major categories of ratios ? * Ratios are used by managers to help improve the firms performance , by lenders to help evaluate the firms likelihood of repaying debits, and by stockholders to help forecast future earnings and dividends. * Five major categories of ratios :

1. Liquidity ratios, which gives us an information of the firms ability to pay off its debts that are maturing within a year. And measuring short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash. 2. Asset management ratios, which gives us an information of how effeciently the firms by using the assets. 3. Debt management ratios, which gives us an information of how the firms has financed their asstes as well as the firms ability to repay their long-term debts. 4. Profitability ratios, which gives us an information how profitability the firms operating and utilizing their assets. And measure the income or operating success of a company for a given period of time. 5. Market value ratios, are used in three primary ways : (1) by investors when they are deciding to buy or sell a stock, (2) by investment bankers when they are setting the share price for a new stock issue, (3) and by firms when they are deciding how much to offer for another firm in a potential merger.

b. Current Ratio2009 = Current Asstes = $ 1,985,827 = 1,85 x Current liabilities $ 1,073,192
Quick Ratio2009 = Current Asset – Inventories = 1,985,827 - 909,379 = 1,00 x Current liabilities 1,073,192 * The company current and quick ratios both in trend analysis and cross sectional analysis are relative low in 2008 if it compares with 2007 but in 2009 estimated is higher than 2008. * It would haven’t equal interest in the company liquidity ratios because the managers just need the liquidity ratios and asset management ratio to help run the business, and then the bankers need the information from debt managemet ratios especially from time interest earned for credit analysis, and for the stockholder need some information from Profitability ratios and market value ratios for stock valuation. c. Inventory Turnover2009 = 2,28x

Day Sales Outstanding2009 = 154,69 days
Fixed Assets Turnover2009 = 6,61x
Total Assets Turnover2009 = 0,9 x
The...
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