100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Summary MBA FPX5010-3rd assessment 1st attempt.docx KMBA-FPX-5010 Capella University KMBA-FPX-5010 Performance Evaluation Introduction Financial performance is a subjective indicator of a company's ability to earn revenue from its principal way of$7.49
Add to cart
Summary MBA FPX5010-3rd assessment 1st attempt.docx KMBA-FPX-5010 Capella University KMBA-FPX-5010 Performance Evaluation Introduction Financial performance is a subjective indicator of a company's ability to earn revenue from its principal way of
3 views 0 purchase
Course
RAS
Institution
Rasmussen College
MBA FPX5010-3rd assessment 1st KMBA-FPX-5010 Capella University KMBA-FPX-5010 Performance Evaluation Introduction Financial performance is a subjective indicator of a company's ability to earn revenue from its principal way of operation. The phrase is frequently employed as a broad in...
mba fpx5010 3rd assessment 1st attemptdocx kmba fpx 5010 capella university kmba fpx 5010 performance evaluation introduction financial performance is a subjective indicator of a company
Written for
Rasmussen College
RAS
All documents for this subject (301)
Seller
Follow
helperatsof1
Reviews received
Content preview
KMBA-FPX-5010
Capella University
KMBA-FPX-5010
Performance Evaluation
Introduction
Financial performance is a subjective indicator of a company's ability to earn revenue from its
principal way of operation. The phrase is frequently employed as a broad indicator of a
company's overall financial health over time, (Kenton, 2021). The Ace Company has requested a
$3 million dollar business loan with a 10-year duration. The funding will help with the purchase
of manufacturing equipment as well as the development of related software. A financial
performance review of the company has been requested to examine if the prerequisites for
obtaining the business loan have been satisfied. A trend analysis of accounts receivable will be
performed, as well as a comparison of inventory turnover to the industry average and a study of
the company's short and long term credit worthiness.
Analyze the trend for Ace Company Accounts Receivable
Accounts receivable climbed by one hundred dollars in 2017, according to the statistics. This
might be a sign of a long-term upward trend, or it might be a one-time occurrence. Account
receivables are cash owed to a company for goods and services delivered. To calculate the ratio
The A/R turnover is divided by the number of days in the year. We used the days of the year
365/468+78 for the year 2016 and 365/5.06=723 for the year 2017. Although the trend in
accounts receivable collection has only grown by a little margin, a larger ratio allows accounts to
be paid at a faster pace, (Leitch, & Lmminmaki, 2011).
Comparing average turnover to industry average
Inventory turnover is a financial statistic that indicates how many times a company's inventory
has been sold and replaced in a particular period. The days it takes to sell the inventory on hand
may then be calculated by multiplying the number of days in the period by the inventory
turnover formula. Inventory turnover may assist firms in making better pricing, production,
marketing, and purchasing decisions and new inventory, (Fernando, 2021). Pricing, production,
and marketing are all examples of this. If turnover is high, sales are likely to be strong, which
means inventory will be low. If turnover is high, it means sales are strong, which means
inventory will be low. Sales will be sluggish and inventories will be in excess if turnover is poor,
(Ready Ratios, 2020).
Short/Long term credit worthiness
Creditworthiness is how a lender evaluates whether or not you will default on your financial
commitments, or whether or not you are creditworthy. Your creditworthiness is what creditors
consider before extending you fresh credit. Several elements, including your payback history and
credit score, go into determining your creditworthiness. When determining the likelihood of
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller helperatsof1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.49. You're not tied to anything after your purchase.
