Strategy Governance (Essay Sample)

Ratios Analysis of a Project
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Institutions
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Ratio analysis significance in project management enhance evaluation of efficiency of the project and how well the stakeholder controls the resources. The results of developing and reducing the effects of the Alzheimer disease revolves around the effectiveness and reliable forecast of the various ratios to be adopted by the government CITATION Kie12 \l 1033 (Kieso, Warfield, & Weygandt, 2012). Moreover, ratios offers reliable information to investor willing to invest in the company.
The investors need to rely on various ratios of the company before indulging in investment to the company. Basically, considering the operating ratios, profitability and liquidity ratios. The ratios sheds clear picture of the status of the company performance in the market. In the case of profitability ratios, the investor realizes the operating margin of the company before and after interests and taxes. Additionally, the clear picture of the performance on the rate on assets (ROA) reflects how efficiently and effectively the management utilizes the various company resources. Return on Equity (ROE) ratio reflect the how well the business is doing in relation to the investment indulged by the shareholders CITATION Kri07 \l 1033 (Palepu, 2007).
Liquidity ratios reflects the ability of the company to convert the assets to cash to cater for short term activities. In this case, the investor may be interested in cash ratio that reflects on ability of converting assets to meet the short term commitment and the quick ratio that reflects the ability to access cash quick to meet the company demands.
Comparatively low ratios reflects the company might have difficulties in meeting its obligations. This project is well financed and thus focusing on the ratios might ...