Ciara Elliott-Compentecy 1 Reflection-ACCCB543

docx

School

University of Phoenix *

*We aren’t endorsed by this school

Course

543

Subject

Management

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by elliottciara

1 Competency 1 Reflection Ciara Elliott University Of Phoenix ACCCB/543 Comfort Chevannes

2 Competency 1 Reflection We are going to discuss the ratio analysis and its three main categories and how they are used in the managerial decision making. Analytical techniques and distinguishing the three capital investments of net present value, internal rate of run and payback method. While discussing the two advantages and disadvantages of each technique. Ratio Analysis When it comes to ratio analysis this is something that is used by management to help with the financial statements over time. This helps keep track of the company’s performance and can help identify the areas of strength or the areas that need help. Liquidity ratios, solvency ratios and profitability ratios are the three main categories of ratio. Liquidity ratios is used to help assess the company’s capacity to settle any short-term debt. This helps the company to know how they can pay off liabilities, liquid or any current. When it comes to solvency ratios it is used for companies to have the ability to repay any long-term debt. This how they can determine if the money is sufficient to cover any obligations for long term, this is beneficial to the company’s assets and for them to be able to keep track. Profitability ratios is the financial metric that can be used to measure and evaluate the company’s income. Balance sheets, operating cost and shareholders revenue is how this ratio is used its beneficial to the companies because they can see where and how to better generate the income. Analytical Techniques When it comes to the analytical techniques the three-capital budgeting used by companies to help benefit shareholders in the company and the techniques are Net Present Value which is

3 the future money of the company such as investments, new business ventures and any other business dealing with money. This helps estimate the value of the company and their projects. The advantage of this is that it helps consider the value of the many and ways to add to the value of the project. The disadvantage is that hidden cost is not considered. When it comes to the Internal Rate of Return this is used to estimate the profitability of potential investments. This is a discounted rate that makes the net present value from a project equal out to zero. The advantage of this is the cash flows being equally important, uniform ranking, maximum profitability of shareholder and not needing to calculate cost of capital (Kumar, 2024). The disadvantage is that the project and its size isn’t taking into consideration. When it comes to the Payback Method is when a project is happening it measure the time it will take to recover the investment time period, assessing the risk of the project. It helps determine the payback period terms and the years. The advantage of this is that the calculation is based on the cash flow. The disadvantage is that it can ignore the value of the money. Conclusion Being able to learn this information was great because this isn’t something that you hear or would learn. This is so beneficial to know because it can ensure that you run your own business smoothly. I don’t think people really understand all the things that there are to know when it comes to running a business and I think that people who do have successful business and or multiple businesses are successful because of the people that are running them. I believe that somewhere they have someone who has an MBA that can help ensure the ratio analysis and analytical techniques. This isn’t something that you will just know and I’m excited to ensure I

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4 implement these things into my business. This is beneficial very beneficial for nonprofit business owners as well. References

5 https://learning.mheducation.com/static/awd/index.html?_t=1709498694940#/ Kumar, V. (2024). Advantages and Disadvantages of Internal Rate of Return. Accounting Education University https://www.svtuition.org/2010/05/advantages-and-disadvantages-of.html

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Disc 1 Mary333.doc

Final Report Leadership (1).docx

Chapter 6.docx

Ciara Elliott-Compentecy 3 Reflection-FINCB571.docx

HRM 225 4 Assignment.docx

HRM 5.1 Project One Manager Memo.docx

Ciara Elliott-Compentecy 1 Reflection-FINCB571.docx

Exercise #1 - Sustainability.docx

M3D1.docx

How are you feeling about your MLQ results?.docx

Sully Case Reaction Paper.docx

LDR535 Week 4 Assessment Innovative Leadership Report.docx

Recommended textbooks for you

Understanding Management (MindTap Course List)

Management

ISBN:9781305502215

Author:Richard L. Daft, Dorothy Marcic

Publisher:Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Understanding Management (MindTap Course List)
Management
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning