Company Financial Analysis Research Articles

Research on the Financial Problems and Optimization Strategies of Dongxu Optoelectronics

Financial management runs through the whole process of enterprise production and operation, involves every economic activity, and has a close relationship with enterprise cost expenditure, profit distribution and so on. Based on the financial status of Dongxu Optoelectronic Company, this paper makes an in-depth discussion on the main problems existing in the company's financial analysis through the collation and analysis of its various data, and puts forward targeted optimization, so as to provide some theoretical support for the improvement of the quality of the enterprise's financial report analysis, and improve the level and efficiency of the enterprise's financial management.

Financial Ratios: Considerations of Their Relevance to Corporate Financial Analysis and an In-Depth Look at the Major Errors Often Mar These Ratios

This article focuses on financial ratios, a topic that is often considered obsolete. This leads many scholars and companies to underestimate the danger of incorrect calculations and interpretations of these ratios. Sometimes, in some articles and books, it can be perceived how the author, while addressing the issue of a company's financial situation, considers Financial ratios as obsolete analysis tools and proposes the use of much more sophisticated and complex instruments for financial analysis. This behaviour is to be stigmatised because we know that more refined and complex instruments must supplement financial ratios for a company's financial analysis to be complete. However, we disagree with considering Financial ratios as obsolete instruments. Further investigations may be performed alongside these ratios, but these ratios can never replace by any complex and, perhaps, more structured financial tool. And it should note that underestimating the importance of financial ratios frequently leads to the quantitative determination of incorrect values and the interpretation of data, even if determined correctly, that is entirely misleading and far removed from the reality that the ratios are intended to portray. For the writer, therefore, financial ratios are not only not obsolete but represent the starting point of a financial analysis that provides company management with indispensable information on the development of the financial situation of the company to which they belongAnalysis of a company's financial situation is not feasible except by comparing specific data with other values. Absolute values do not allow one to judge the 'trend of the company's financial situation. For this reason, it is well-known that particular ratios are used to understand whether the enterprise enjoys excellent health or has more or less severe problems financially. Often the determination of these ratios starts foot, by some scholars and by many companies, using aggregates, unsuitable for the analysis to be complete and correct. In some instances, it is also noticeable how ratios are determined whose informational value is practically null. As a result, a calculation of them is an interpretation that can be downright misleading regarding the situation being experienced, at a given instant, the enterprise under analysis. And it should be noted how using ratios alone is insufficient to carry out a financial analysis point. The completion of proportions with dynamic analysis is essential, and therefore, for this reason, the preparation of a cash flow statement should be considered indispensable completion of purely financial ratios.

Impact of Merger on Operational and HR Efficiency: A Case Study of the State Bank of India

Purpose: Analysing financial performance is one of the popular methods for measuring operational efficiency of a firm. Ratio analysis is an important tool of financial analysis. The analysis of key performance parameters enables diverse group of stakeholders to obtain information about profitability and growth prospects. Mergers and acquisitions are popular means of inorganic growth. The Indian Banking Industry has used this effective tool to consolidate and grow in size. Through M&A, acquired banks get a new name, structure, products and services. However, the risk of NPAs continues to be a major problem for banks. In order to study the effectiveness of a merger, analysing financial performance prior to and after merger becomes important. The State Bank of India merger has been taken up for the study, since following the merger there is a substantial increase in both the market share as well as asset base of the bank. Design/Methodology/Approach: This paper studies the result of mergers on financial indicators, market performance, asset quality, liquidity position and employee productivity of SBI after it merged with its 5 associate banks and BMB through ratio analysis. The ratios indicating the performance parameters have been taken from secondary sources such as moneycontrol.com, stock-financials.valuestocks.in. etc. A comparison of various financial ratios is made to determine the change in the performance parameters of the bank. Findings/Result: The study highlights reduction in profitability, increase in cost to income ratio, slight improvement in liquidity, decline in asset quality and market performance and a slight decrease in employee productivity after the merger. Originality/Value: This paper studies the effectiveness of mergers in terms of change in key financial performance parameters. Paper Type: Research Case Study based on company financial analysis.

Making the most of an internal investigation

The warning signs may come from a number of sources‐a tip from an employee, complaints from customers and vendors, or troubling facts that surfaced in your company financial analysis or audit. The issue is not whether to conduct an internal investigation, but how. As a CPA and a certified fraud examiner, I have been involved in hundreds of investigations of all degrees of size and complexity. Going in, my mission is not only to resolve the issue quickly and efficiently, but also to make the investigation work to the maximum advantage of the company. Properly planned and conducted, an internal investigation can reveal much more than who, what, when, where, why, and how much? It can offer opportunities to strengthen the business for the future. It starts with knowing what you want to accomplish.