Essays on Financial Ratio Analysis for Burganz Case Study

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The paper “ Financial Ratio Analysis for Burganz” is an informative example of a finance & accounting case study. There are different phases in the economy such as boom, depression, recession, etc. The performance of the economy here is not cyclical as in the case of developed countries exhibiting business cycles, as the economy depends basically on the growth rate of agriculture. Thus one important factor is dying fiscal policy which incorporates government expenditure and taxation, borrowing, deficit financing, etc. which influences both the public and private sectors in the economy. The industrial growth in general norm Particular influence he corporate performance. Corporate performance depends on a number of variables, both internal and external to the company.

The major internal factors are: (i) efficiency of capital use productivity of total capital employed Growth of Gross Block and its capacity utilization (ii) Sales turnover and operational efficiency (iii) Profitability of the operations (iv) return on capital employed (v) expansion plans and internal reserves built tip and (vi) Tax planning and accounting practices etc. Let’ s analyze the cases. Case 1IntroductionThe long-term goals prefer mostly companies with solid past performance and continued good performance in the future.

Such companies are calledgrowth companies, or Blue Chip Companies as Burganz. Of the factors which influence the share prices, the most important one is corporate fundamentals, namely, the company's intrinsic worth, net asset value, or book value. Corporate performance is thus the single largest force, influencing the share price. This is studied by the ratio analysis referred to below, funds flow analysis — namely sources and use of funds — and trend analysis of growth rates of important parameters like sales, gross block, etc. All the proposals are important and require considerable attention since they relate to the future development of the company.

The reliable proposal up for consideration is: Proposal 3 i. e. to relocate to a new factory on a site the company already owns in Melbourne.

Reference

1. Biz/ed (2008), Financial Ratio Analysis [www] Available from: http://www.bized.co.uk/compfact/ratios/index.html [Accessed: 2May 2008

2. Missale, Alessandro (2000) Corporate Fund Management. Oxford: Oxford University Press.

3. (CUSUMANO MA & MARKIDES CC 2001. Strategic thinking for the next

Economy San Francisco: Jossey-Bas)

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