The Purpose Of A Financial Ratio Analysis In A Company

Discussion Question 3

Research and write your Fortune 500 company’s three (3) current Opportunities and three (3) current Threats of your company in this current year.

Research and describe the impact that these factors of opportunities and threats have on your company’s financial and future strategy in the current year.

Resource information:  Opportunities and threats are external—factors that are going on outside your company, in the larger market. You can take advantage of opportunities and protect against threats, but you can’t change them.  This matrix is known as the External Factor Evaluation (EFE) and opposite will be the Internal Factors Evaluation (IFE).

Opportunities examples are ‘Technology Advancements’.  Threats examples are ‘Economic Changes’.

Discussion Question 4

Research and define a Competitive Profile Matrix, commonly known as a CPM according to Strategic management.  Cite your sources in APA format.

Answer the following the questions:

·         How can a Competitive Profile Matrix related to a company’s strategy?

·         Name two (2) competitors of your Fortune 500 company.

·         Name three (3) examples of key success factors from your CPM using your Discussion Question company.

Resource Information:  Review the CPM Matrix and how it calculations your company and the competitors’ factors.  Note will need to use basic mathematical calculations in your weekly assignment.  This matrix is known as the Competitive Profile Matrix (CPM). 

Discussion Question 5

Define the following terms. Current Ratio, Quick Ratio, Profitability Ratio, and Equity Ratio.

Answer the following questions:

·         What is the purpose of a financial ratio analysis in a company?

·         Which ratio do you feel is the most important to your Fortune 500 discussion company in making financial forecasts?  Why?

Discussion Question 6

Research and write your Fortune 500 company’s three (3) current Strengths and three (3) current Weaknesses of your company in this current year.

Research and describe the impact that these factors of strengths and weaknesses have on your company’s financial and future strategy in the current year.

Resource information:  Strengths and weaknesses are internal—factors that are going on inside your company.  You can take advantage of strengths and use your weaknesses for research and development, but you can change them.  This matrix is known as the Internal Factor Evaluation (IFE) and opposite will be the External Factors Evaluation (EFE).

Strengths examples are ‘Customer Loyalty’.  Weakness examples are ‘Patent Infringement’.