Financial Health

MM 5009

FINANCIAL MANAGEMENT

Assesing a Company’s Future Financial Health Case

Report

R50A – Syndicate 7

Zarisya Vianadia Aziz 29113330

Regi Primakusumah 29113334

Adyanto Hediawan P 29113345

I G P Ananta Wiratmaja 29113364

Anggia Agdini 29113390

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUT TEKNOLOGI BANDUNG

2014

Assesing a Company’s Future Financial Health Report

Syndicate 7

1. Objective

Overall objective of this case is about analyzing factors that we can predict the financial health and performance in the future. We have to know the stages in analyzing financial performance from how the company plan their financial plan. Then, calculate their financial performance from their financial statement such as profitability ratios, activity ratios, leverage ratios, and liquidity ratios. Also in this case we learnt about criteria of company viewed by its financial statement.

2. Analysis

In this case we have to analyze the steps that done by the company to set their financial performance (figure a) we divided this plan into six steps as follow :

Step 1 : We have to look at what company goals, is it visionary, or is it profit oriented? Because the company goals could driven its financial system performance. We also have to look at their product market choices and how they manage it with their strategies. Because if their choose the right product for the right market and deliver it with the right strategies could gain revenue and more profit. Here is a term said that “Strategies and sales growth of each units determines the investment in assests needed to support the strategies and its effectiveness”

Step 2 : To supports sales specially future sales, investments are required to support the strategies such as investment in inventories, plant and equipment, operational, and marketing expense. In terms of sales growth and improvement investments are needed.

Step 3 : The company should asses...