Financial accounting Essay Example | Topics and Well Written Essays - 1000 words - 4

Financial accounting - Essay Example Return kind of ratios represents the ability of a company to measure its overall efficiency more so in generating the returns to the shareholders. On the other hand, ratios that indicate margin illustrate the ability of the company to translate its sales dollars into profits. This therefore implies that the main purpose of profitability ratios is to measure the ability of a company to generate its earnings relative to assets, equity and sales. Liquidity ratios indicates the ability of a company to meet or pay off its short term debt obligations or short term liabilities as they fall due. It indicates the company’s low default risk in case the ratios are more than one. The company’s current ratio is increasing over time indicating that the company’s ability is increasing as well. This means that the company is able to meet its short term liabilities with ease hence it is having a high performance. The company’s quick ratio is less than one implying that its most liquid assets are not enough to meet its short term obligations. This means that the company is over-leveraged, collecting its receivables slowly, paying its bills too quickly or struggling to grow or maintain sales. However, the trend indicates an increase in the company’s most liquid assets evidenced by increase in quick ratio. Efficiency ratio assist the company to measure how effectively it is utilizing its assets and or how well its liabilities are managed. These ratios show how efficient the assets of a business are working to generate sales. They therefore assist a business manager conduct business better. They show how quickly a company’s money from credit sales is collected or the number of times a company’s inventory turns over. Their main purpose is therefore to show how effective the management of the company is. The company has a high turnover ratios meaning that it is using few assets to generate more revenue hence it is very efficient in its

Possible Uses of a Hammer Assignment Example | Topics and Well Written Essays - 500 words - 209

Possible Uses of a Hammer - Assignment Example In addition, a hammer can also be used as a tool for drilling holes into surfaces and shaping objects by hitting a chisel with it. The following experience makes it easier to identify the different options that are available for a particular scenario. The information is presented in a simplified form that is easy to understand without spending a lot of time on it. This helps an individual to make a quick decision-saving time since the desired information is easily spotted. This technique of listing the different possibilities can be used in a variety of other situations to help simplify data for the user. For example, in the banks, an individual can conduct various transactions. Each transaction has a different chargee. g when sending money to another country, the amount charged is different depending on the amount one is sending and the country of the intended transfer. To simplify this charges for customers, banks can prepare a matrix indicating the range of money that is to be sent in a specific country on the vertically and the amount charged alongside it on the horizontally. Another example is that can use a matrix to simplify information is the assessment of employees against certain set criteria for performance appraisal. The desired employee traits and achievements in the various fields such as punctuality, present ability, and achievement of organizational objectives can be written on vertically. The score of the employee can be indicated horizontally for example under the heading very good, good, average, poor or very poor. This would make the evaluation of the employees easy on the various fields with the score being easily picked at each field. The use of a matrix can help individuals summarize a lot of information into a simple table. This can help in understanding various uses of different objects that are not known.