What information might you use, besides its financial statements, when analyzing an organization's financial health?

What information might you use, besides its financial statements, when analyzing an organization's financial health? What is a company's "z-score," and what does it tell you?

Solutions

Expert Solution

The information that might we use, besides its financial statements, when analyzing an organization's financial health are as follows

1. The Inventory Level it is excessive or insufficient

2. Cash Collection policy or schedules.

3. Budget Analysis

4. Sales Activities of the Business

5. Companys future Plan or Past activities

6. Operating Efficiency

7. Working Capital of business.

A Z Score is just a numerical representation of the values relationship with the mean in a group values A Z Score in a company will help or tell to find out the likelihood that a company will go bankrupt.A comopany Z score will be calculated with the assets , liabilities , net income etc. which are to be found from the financial statements of the company.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What information might you use, besides its financial statements, when analyzing an organization's financial health? What...

What information might you use, besides its financial statements, when analyzing an organization's financial health? What is a company's "z-score," and what does it tell you? Be specific, and identify the usefulness of the information that you identify. Cite any references used.

9. When analyzing financial statements, besides reviewing data year over year for comparisons, the analyst should...

9. When analyzing financial statements, besides reviewing data year over year for comparisons, the analyst should also compare the data to_________________________________________ 10. Give an example of “separation of duties “ in the accounting department of a small business _________________________________________________________________________________________________________________ 11. Explain the meaning of “rationalization” with respect to internal control and the Fraud Triangle ________________________________________________________________________________________________________________ 12. How can a business owner with very few employees implement internal controls? a. Due to small number of employees it is not feasible. b....

Ratio analysis is an important analytical tool to use when analyzing the financial statements and there...

Ratio analysis is an important analytical tool to use when analyzing the financial statements and there are a lot of ratios when it comes to this type of analysis. You need to understand each one in order to make better decisions about the business and evaluate its overall financial health. If you were analyzing a business and they had: A current ratio of 1.4 Debt ratio of .8 Number of days’ sales in inventory of 20 Return on equity of...

Determine what information you would use to anticipate health hazards that might be present in each...

Determine what information you would use to anticipate health hazards that might be present in each of the eight areas of the AAP plant. State where you might find the information you need.

When analyzing projected financial statements, you should do which of the following: Group of answer choices...

When analyzing projected financial statements, you should do which of the following: Group of answer choices test the reasonableness of forecast assumptions Use ratios and other analytical tools perform a sensitivity analysis all of the above

What factors should be considerations for banks, nonprofit companies, and government sectors when analyzing financial statements?

What do you feel is the difference between financial reporting and financial statements? What ratios might...

What do you feel is the difference between financial reporting and financial statements? What ratios might you use to evaluate managements performance, and why is this important?

what can be a limitation of the accounting ratios for analyzing the financial statements

(Analyzing common-size financial statements) Use the common-size financial statements found here: LOADING... to respond to your...

(Analyzing common-size financial statements) Use the common-size financial statements found here: LOADING... to respond to your boss' request that you write up your assessment of the firm's financial condition. Specifically, write up a brief narrative that responds to the following questions: a. How much cash does Patterson have on hand relative to its total assets? b. What proportion of Patterson's assets has the firm financed using short-term debt? Long-term debt? c. What percent of Patterson's revenues does the firm have...

There are many information that might be useful for users of financial statements. How- ever, the...

There are many information that might be useful for users of financial statements. How- ever, the information are not always mandated in the form of accounting standard. A. Should all the accounting information be mandated for presentation and disclosure in financial statements by way of accounting standards? Why? B. What component/part of the Conceptual Framework should the standard setters use to decide whether an accounting standard should be issued for mandating or not mandat- ing the disclosure of accounting information?...

Subjects