Provide an explanation on why and how the unique and practical ratios are used by management. Explain the components used and why they are important.

Topic: Week 3 Provide Two Key Financial Ratios Used by the Company Management Selected for the Project and Component Six Inputs

Paper details:

1. You CAN NOT use the text book ratios for this discussion post .This is supposed to be critical thinking exercise so please investigate the most used operational and financial ratios by management to monitor and run the company.

2. If possible, speak with a member of management and find out what operational or financial ratios used on a day-to-day basis.

What are the major income or expense line items impacting your primary company and what ratios you would rely upon on a consistent basis to manage your company?

3. Provide an explanation on why and how the unique and practical ratios are used by management. Explain the components used and why they are important.

4.Provide the amounts (numerator and denominator) and calculation results for the most recent FYE financial statements. Also provide the industry averages if available.

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5. Explain how you decided on the the initial project cost, method used to determine expected yearly revenue growth rate, and yearly expense inflation rate.

 

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