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Ratio Analysis

Essay by   •  March 27, 2012  •  Essay  •  315 Words (2 Pages)  •  1,636 Views

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Ratio analysis is a process that shows the financial well- being of an organization. The financial key numbers are used to come up with various ratios such as liquidity, debt ratio, ROI and inventory turnover. My company uses ROI as its key measure to determine whether its investments pay off in the equity markets. ROI, compounded annual growth rate calculated for investments that are held for up to one year. The firm also uses PE and dividend calculations to determine whether a particular investment fits their levels of criteria.

I am a great supporter into a theory that if the employees' interest is aligned with the interests of the managers and the corporation, they will be very interested in the work they perform and the effect their work will have on the bottom line. Creating an open environment where the manager's subordinates feel that they are on the same level as the manager will remove the unnecessary stress and pressure and will make the motivated more to produce and perform as a team as opposed to an individual.If the desire, hard work, talent is there as well as the comfortable team environment almost any task can be completed.

There are many positive and negative issues of automation impacting our society today. The positive issues are that life has become easier through the use of technology. Some of the practical examples that can be used is the EZ pass. The traffic jams and time it takes to pass through a toll booth on a highway have been tremendously reduced. Those motorists that may not have cash on hand at that particular moment are able to pass through the booth with their EZ pass tags. Another example is at the local supermarket where the self - checkout counters have been able to reduce the lines to pay for groceries and expedited the time for the shoppers.

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