FINANCIAL INFORMATION COURSEWORK ASSIGNMENT Example | Topics and Well Written Essays - 1250 words

FINANCIAL INFORMATION ASSIGNMENT - Coursework Example nancial statements as it provides reliance upon the business which is conducted by the company during the year and the user of the financial statement, which can be a shareholder, lender, prospective investor or even employee of the company, can place faith in the fair statement of the affairs presented in it. The ratios of the company, that summarize the performance of the company during the year and previous year, are provided and an in-depth analysis over the results based on the calculated ratios is carried out. The company has maintained its ratio of profitability since the last year as the company had a gross profit and net profit margin of 7.76% and 3.96% last year respectively which was increased marginally to 8.1% and 4.1% respectively. This shows that the company is showing a good bit of increase in its already good profitability. The liquidity management of the company is in good health if we consider the particular industry to which the company belongs to as the retail business sector operates with low liquidity. The company has maintained a current ratio of around 0.75 in both the years. The gearing ratio is quite satisfactory as the company has managed to keep the gearing debt to equity ratio below the standard 1 which indicates that the company is more dependent on equity finance as compared to debt finance which is a good sign for any company. The share price of the company at the end of the current financial year was  £4.2 per share while the share price at the end of the 2009 financial year was  £3.33 per share. Therefore the increase in the share price since then is over 20%. The return on Equity has declined marginally in the year 2010 as compared to 2009 even though the profit margin of the company has increased. The main cause of the decline is the decline in the Assets leverage. The assets of the company have increased but not in the same proportion as compared to last year. If the Return on Equity is calculated by ignoring the equity

Implementing the Risk Management Process in New Kitchen Heaven Retail Essay

Implementing the Risk Management Process in New Kitchen Heaven Retail Store - Essay Example The intention of this study is risk as the probability that a chosen action or activity including the choice of inaction might result into a loss or undesirable outcome. This implies that a choice has an element of influence on the outcome. Risk management process is therefore the systematic application of the policies, methods and practices of management to the tasks of establishing the context, analyzing, evaluating, monitoring, treating and finally reviewing the inherent risks. Risk management process is therefore an ongoing process that aids in identifying potential problems that could emerge when new projects are undertaken within a business. A solid risk management process facilitates the smooth running of a project. By identifying and addressing a list of project risks which are also part of the larger project or business management system, many disclosures and roadblocks are eliminated. Consequently the risk management process is an essential factor that should be considered in an organization so as to enable its business to effectively run. It ensures that a well structured a framework for more effective strategic planning to enable maximization of opportunities and minimization off losses is put. It equally promotes greater openness in decision making and improves communication in an organization as well as providing an effective and systematic approach which enhances the management focus on areas of risk concentration in their operations. Moreover, risk management widens the management’s perspective and encourages initiative and proactive behavior that improve the level of accountability in an organization. Identifying the Risk Factors Considering the compilation lists of the NKHRS project risks, it is realized that the major risks are concentrated in three sections, that is, in areas of Information Technology, Facilities and Retail. In the area of Information Technology there is the risk of getting a professional contractor to install the Eth ernet so as to enable effective operations. Similarly, there is the risk of getting the Point of Sale and server hardware in time for the smooth operations .In the area of facilities it is noted that there is a risk in obtaining the right and desirable location bearing the right price range This location might as well be risky in terms of the availability of the goods and the products accessibility to the consumers. In this case a plan should be developed to decide on whether to find the right location for a high producing store to avoid great loss in sales or to consider a different alternative that can generate good profits (Culp, 2006). Consequently, in the Retail category there is the risk of the availability of the products at the right time to the customers and that the shipment date for the