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Financial Analysis

Tuesday, July 31, 2012
Financial Analysis

The process of evaluation which is critical about financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called ‘Financial Statement Analysis’. It is basically a study of relationship among different financial facts and figures as given in a set of financial statements, and the interpretation thereof to gain an insight into the operational efficiency and profitability of the firm to assess its financial health and future prospects. The term analysis is nothing but simplification of financial data by classification methods given in the financial statements. Interpretation means explaining the significance and meaning of the data.


These two are complimentary to each other. Analysis is useless without interpretation, and interpretation without analysis is difficult or even impossible.

Financial analysis is the process of identifying the financial weakness and strengths of the firm by properly establishing relationships between the different items of the profit and loss account and the balance sheet. Financial analysis can be undertaken by management of the firm, or by parties outside the firm, viz. owners, trade creditors, lenders, investors, labour unions, analysts and others. The nature of analysis will differ depending on the purpose of the analyst. A technique frequently used by an analyst need not necessarily serve the purpose of other analysts because of the difference in the interests of the analysts. Financial analysis is useful and significant to different users in the following ways:

(a) Finance manager: Financial analysis focusses on the facts and relationships related to managerial performance, corporate efficiency, financial strengths and weaknesses and creditworthiness of the company.

A finance manager must be well-equipped with various tools of analysis to make rational decisions for the firm. The tools for analysis help in studying accounting data so as to determine the continuity of the operating policies, investment value of the business, credit ratings and testing the efficiency of operations.

(b) Top management: The importance of financial analysis is not limited to the finance manager alone. Its scope of importance is quite broad which includes top management in general and the other functional managers. Management of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most efficiently, and that the firm’s financial condition is sound. Financial analysis helps the management in measuring the success or otherwise of the company’s operations, appraising the individual’s performance and evaluating the system of internal control.


(c) Trade creditors: A trade creditor, through an analysis of financial statements, appraises not only the urgent ability of the company to meet its obligations, but also judges the probability of its continued ability to meet all its financial obligations in future. Trade creditors are interested in the firm’s ability to meet their claims over a short period of time. Their analysis will, therefore, confine to the evaluation of the firm’s liquidity position.


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How To Write Thesis Statement For Julius Ceaser Essay

Friday, July 27, 2012
How To Write Thesis Statement For Julius Ceaser Essay
Thesis statement will do wonders for your Julius Ceaser essay if it is written well; thesis statement is basically a small sentence that illustrates the whole idea of an essay in understandable, clear and concise way. Julius Ceaser essay thesis statement writing is not everyones cup of tea as it is the most controversial figure in the history of Rome and not much is known about him, his life was a struggle and was never so smooth that a student can understand in the contemporary environment.

This is the sole reason why students are not able to meet the expectation of their teachers in the thesis statement of Julius Ceaser essay, one has to conduct a thorough research work on the character of Julius Ceaser without a doubt but still if you are not able to cope up with the situation you can follow the given advice on how to write three different types of thesis statement for Julius Ceaser essay.

Different thesis statement examples for Julius Ceaser essays

Following are the three different methods for writing thesis statement for Julius Ceaser essays

Analytical thesis statement:

Analytical thesis statement divides the ideas or issues in to different segments so that it can become more analyzing then commenting, now lets have a look into an analytical thesis statement example.

Thesis statement example:

An analysis of the Julius Caesars empowerment unveils one of the them most amazing issue; that is the power along with the conspiracies for good causes or waiting for the worst thing to happen

Expository thesis statement:

Expository thesis statement will be about something about the life of the main character of the play or about the author of the play, Julius Ceaser.
Thesis statement example:

Whole life of Julius Ceaser is about the bravery, courage and honesty he showed in his political achievements and military adventures.

Argumentative Thesis Statement:

Argumentative thesis statement provides a claim or argument for Julius Ceaser essay that is proved and supported by sturdier evidences.

Argumentative thesis statement example:

The privileged among us should try to help those in need by every legal ways to help the nation stand on its feet.

Essay on Julius Ceaser thesis statement has to be according to the theme of the Julius Ceaser like if you are writing an analytical essay then make sure the thesis statement is also analytical otherwise you will lose all of your marks in one minute.

Hence, you also need to make sure if the thesis statement for essays on Julius Ceaser is convincing, well-written, well-defined and above all short. Thesis statement writing in unimpeachably an art and you cannot learn that art if you dont have an idea how to write them effectively and for this you have to go through the above told thesis statement examples. Another word of advice here is that try to devise your own thesis statement for Julius Caesar essays so that you can come up with original and unique piece of thesis statement that is compelling and interesting as well.


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Disparate Treatment and Disparate Impact Analysis

Monday, July 23, 2012
Disparate Treatment and Disparate Impact Analysis

Disparate treatment and disparate impact are discriminatory treatment. However, one is indirect while the other is direct. Disparate impact is a legal assumption for proving illegitimate employment discrimination, is the concept that a number of employers practice, and it is a non intentional prejudiced action. Whereas, disparate treatment is a basic idea in employment prejudice cases, employment discrimination cases are classified by the lawyers as either disparate impact cases or disparate treatment cases. An illustration of a disparate treatment scenario is where a worker claims that he or she was treated differently than other employees in a similar circumstance by an employer.


Disparate impact analysis

The theory of legal responsibility that disallows any employer from using a facially impartial employment practice that has unfounded unfavorable consequence on certain protected group of people. Under title VII of the civil rights act of 1964, employers who discriminate on the basis of color, religion, race, gender or nationality should be sued in the court of law. Those employers who discriminate intentionally are prime candidates of a court case, but the courts also permit the claimants to provide prove showing how the employer treated groups of people differently by use of apparently impartial employment policies (QuizLaw, 2009). The disparate impact theory will thrive if the claimant will be able to provide prove that the employment guiding principles had the consequence of not including persons who are affiliates of title VII's sheltered classes. With establishment of disparate impact, the employer is required by the law to justify the continued application of the procedures or methods causing undesirable consequence as a 'business necessity'.


Indicating that employer's employment procedure of does not reflect the gender, ethnic, or racial percentage of a given population does not automatically prove the disparate impact. Such disproportion can be as a result of genuine factors like cultural differences, geographical location of an area, or deficiency of unchallenged qualification for that particular job (Fick, 1997). Therefore, is upon the claimant to show beyond any reasonable doubt that actually the inequality, imbalance, or disparity is due to challenged practice. The most convincing verification of disparate impact is evidence that an employment procedure decides on members of a protected or group in a proportion lesser than their percentage in the pool of definite interviewees, or, support and advantage cases, in a proportion lesser than in the definite pool of entitled employees. If the claimant gives substantial evidence that the employer's employment procedure had a disproportionate impact on a sheltered group of individuals, then the burden swings to defendant to validate its application of challenged practice. The Griggs court of 1971 'branded' this particular burden as business necessity, but recommended that elimination of practices would be reasonable, justified, or necessary if they were noticeably related to duties of a specific job (QuizLaw, 2009).


Business necessity is the only existing protection against the allegation that a personnel procedure, practice, or method denies protected group of individuals an equal chance for hire, training, promotion, earnings and other conditions or terms of employment. For declaration of business necessity, three conditions must be in existence first: The standard used as the foundation for the employment procedure should be clearly impartial, the standard ought to be evenly applied by the boss, and the standard should encompass a disparate impact on a sheltered class.


The United States Supreme Court has set limits on the theory of disparate impact. For instance, the Court has made it crystal clear that it is illegal for any employer to apply dissimilar terms and conditions when carrying out employment process, if the employer proceeds in accordance to a justifiable seniority system. This is factual even though, the seniority structure has a prejudiced effect, provided the system was not planned to be unfair. Additionally, the Court ruled that theory of disparate impact cannot be practical in age inequity cases under the Act of 1967 of age discrimination in employment (Wojtasiewicz, 2006).


Disparate treatment analysis

Disparate treatment is an essential idea in employment prejudice, discrimination, or bias cases. A discrimination case can either be described as disparate impact or disparate treatment case as earlier said. In the case of disparate treatment the worker claims that the employer treated him or her in a different way than other workers in identical or similar circumstance. For instance, both Ruth and James forego work one day, the employer sacks Ruth but not James. If the basis is because Ruth is a woman, then this disparate treatment because of gender which violates title VII of employment Act. If the actual basis is because of Ruth had recorded a shoddier attendance, then it could be disparate treatment due to differences in work turnout, thus legitimate (Carneiro et al., 2005).


It may appear simple to establish the disparate treatment, by simply requesting for a raft of penalizing records and searching for employees who desecrated similar rule as the claimant but were accorded a lesser penalty. Yet those who follow such cases like workers' union frequently get their claims discarded or rejected due to their incapability to argue against the employer's disputation that the disparities were actually justified. Contrary to general postulation, the rule of disparate does not provide for any employer to treat all workers comparably. Heavier penalties can be given if there is a genuine reason. For instance the claimant may have a considerably worse punitive record, may have done a far more grave infringement, or may have considerably less seniority (Biddle, 1995). Employees may find compassionate treatment if workers confess their faults or take accountability for their action. In order to establish disparate treatment, those pursing it must entirely research the evaluation employees, studying personnel files, analysis their investigatory questions, and most outstandingly, discussing with them about what turned out. Still the records of sacked employees must be reviewed, for instance, the workers' union may discover that a sacked worker was warned twice before the ultimate action, while the claimant received only a single warning (Fick, 1997).


Employees frequently are given fewer penalties than others because of a complaint resolution. For instance, the boss may concur to diminish a discharge to a deferment to a written caution. If the workers' union mentions these cases at negotiation, will they be admitted for evaluation purposes? It is language dependant. If the resolution states that it is devoid of example for prospect cases or employs words to this outcome, it will encompass no significance before an arbitrator (even though it may be hoisted in the levels of the complaint process). But if the resolution is hushed on an example, the arbitrator can categorize it as disparate treatment (Wojtasiewicz, 2006).


 


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Towers Perrin - Swot Analysis

Friday, July 20, 2012
Towers Perrin - Swot Analysis

Towers Perrin - SWOT Analysis company profile is the essential source for top-level company data and information. Towers Perrin - SWOT Analysis examines the company's key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.

Towers Perrin is engaged in providing professional services. The company's provides professional services and solutions in the areas of human capital strategy, program design and management, risk and capital management, insurance and reinsurance intermediary services and actuarial consulting. The company primarily operates in the US. It is headquartered in Stamford, Connecticut. In June 2009, Towers Perrin and Watson Wyatt Worldwide, a global consulting firm, signed a definitive agreement to merger to form a new, publicly listed company called Towers Watson & Co.

Towers Perrin is a private company and has not released its annual report. Therefore, financial details are not available.

Scope of the Report

- Provides all the crucial information on Towers Perrin required for business and competitor intelligence needs
- Contains a study of the major internal and external factors affecting Towers Perrin in the form of a SWOT analysis as well as a breakdown and examination of leading product revenue streams of Towers Perrin
-Data is supplemented with details on Towers Perrin history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available statement from Towers Perrin

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More Statement Analysis Articles

Analysis of Statement of Cash Flow - Vital Aspect In The Process Of Financial Planning

Wednesday, July 4, 2012
Analysis of Statement of Cash Flow - Vital Aspect In The Process Of Financial Planning

When one is done tallying one's assets against one's liabilities in work out to figure out one's net worth, the subsequent imperative step of the process financial planning should be to set up and scrutinize one statement of cash flow. The paragraphs which follow explain the reason behind the importance of analysis of statement of cash flow with respect to the process of financial planning.


The scrutiny and examining of one's cash flow as well as the classification of one's budget to make certain the positive position of cash flow will permit one to take what so ever surplus cash over one's expenditure in order to assign it to one's savings fund as well as the investment plan for achievement of improved net worth.


General daily expenditures can include one's utilities bills, the electricity bills, the water bills, the telephone bills, the groceries bills as well as the transportation bills and various others.

However the genuine bane to some financial map at early phase of economic planning of juvenile person would be in relation to monthly repayments in order to make up for housing loan, may be car loan or even in the worst cases scenario of the debits of credit cards which might came into existence as a result of lofty living lifestyle that is far beyond his/her resources and means.

If one is in a superior fortunate debt free pose, then one's priority should be the budget which embraces monthly allotment for a fund of emergency buffer. Such a fund is vital in order to take good care of around 6-9 months of expenditure in case one loses one's job or in scenario when any kind of unexpected event hits or unjustifiable event occurs. All through this kind of period, gratuitous expenses must be evaded and postponed gratification requires being regulation of the day.


Therefore, the preparation of cash flow statement chased by the scrutiny of one's statement of cash flow statement should aid one make a decision on move to next significant step with respect to the process of financial planning, i.e.

on the lookout for investment opportunities so as to improve one's net worth as well as to attain one's financial goals.

Learn more about cash flow template, please visiting www.cashflowtemplate.org.