The Eight Principles Of Total Quality Management Information Technology Essay

The Eight Principles Of Total Quality Management Information Technology Essay Total Quality Management is a process that ensures continuous improvement for an organisations future. It is a management system with customer satisfaction as a continual goal. It is TQMs goal to integrate a sense of quality into the culture of how an organisation is run. It hopes to merge different internal branches of an organisation (finance, Communications, RD etc.) and link them all with quality being their main goal, with a view to continual customer focus. This system of management contains 8 principles which are vital in implementing this strategy into an organisations culture. These principles combined with effective leadership should result in a company doing The Right Things Right, First Time. TQM stems from the principle that It is easier to control systems than it is people. Companies depend on their customers to keep them in business. It is essential that a company can keep their customers happy by ensuring that the products received are fit for their intended use. It is also very valuable if a company can foresee future customer needs to ensure they keep the customer base in the future. Here the company can ensure that all its new objectives are customer satisfaction based and can later apply measuring techniques to see if their approach is effective (customer surveys etc.) Leadership Total quality should be adopted into the culture of the organization so proper leadership should create an environment where this is possible. The objectives should be clearly laid out with an emphasis on customer satisfaction. A leader should ensure that all employees are fully aware of their importance to the organisation and should eliminate fear and promote trust. Involvement of People Every person within the organisation must be utilized for their specific skills so everyone is contributing to the organizations goals. This helps create a sense of unity and purpose and leads to a better working environment. This leads to people being accountable for their work and serves as a baseline for quality. It involves people sharing ideas and practices and leads to better trouble shooting. Process Approach The objectives should be clearly outlined and all personnel should be aware of hoe the process will be managed and undertaking. This removes the waste of resources and ensures all efforts are placed on defined essential tasks. This helps increase the rate of work and processes are finished faster. If the process has been properly defined and it has to be repeated, the exact same system can be used as it has been documented and this will further increase efficacy of the work in the future. Systems Approach to Management If you can define interrelated systems, they can be correlated and run under one management guise. Running these various operations under one system leads to more effective work and allows the system to be monitored more easily and have data compiled on the systems efficacy. Through this monitoring continual improvement can be scored and documented. By aligning different departments within an organisation, more focus can be placed on key goals and confidence in the work will be widespread. This can lead to greater results faster. Continual Improvement This is to be a permanent goal for every process undertaken within the organisation. By training staff to use the various continual improvement tools available, a company can leap on an improvement opportunity before others. This could possible open up a new customer market that was previously unavailable. Factual Approach to Decision Making Decisions should be made based on analysis of sound data and intensively researched information. This removes poor decision making from an organisation and sets a baseline for decision making in the future. This can also help the ability to demonstrate how effective past decisions were by checking factual data. The factual data can help access the outcome of the decision and help removes decision making based on intuition alone. Mutually Beneficial Supplier relationship A relationship based on mutual benefits is very healthy and ensures that both parties have each other interests in focus. This will help create value for both companies if some parameters are set correctly. Open communication must be maintained and key objectives and future plans must be known to both parties. If both parties can pool their resources and both have a strong view towards customer satisfaction then waste of resources can be minimised and activities can be improved on both sides. Implementing TQM: TQM is a complex management system that will require a lot of input from all people involved in the company. However, the most important initiating step is to get full commitment from the companys senior management. Without this a proper plan cannot be devised and TQM will not work. A quality team or quality council must be set up among senior managers. Here ideas can be exchanged and improvements to specific parts of the company devised. Here it will also be decided who is to implement certain changes and a system of quality reporting must also be set up. There should be a quality improvement team and also a quality planning team set up. These teams should contain people who represent all areas of the organisation and have a high standard of knowledge of their individual departments. It is essential that the individual department are not run separately, but rather as one large system to ensure full communication remains and key objectives can be achieved faster. Once senior management have become involved the next step is to make middle management aware of the transition. This will involve meeting between middle management and the personnel who report to them. Here all staff will be educated about the forthcoming move to TQM and a series of plans will be set in motion. Here the staff should constantly retrain and each department should develop new experts to keep a focus on continual improvement. A mission statement of the organisations quality policy is a great way to start. From here a series of plans and a systematic approach can be developed to convert the companys operations to one of total quality. This change is very serious and without full commitment and proper planning can fail easily. The first thing a company must do is assess their current state. Here a management audit is a valuable tool and can easily identify the companys health. If the company is in poor health (quality standards low, reactive decisions, and poor managerial skill) then TQM will be near impossible to implement. However, if a company can agree that its current level of management, organisational culture and work ethos are suitable to TQM, then the process can develop from here. Benefits of TQM: Once an organisation has been converted to a system of total quality management, the organisation may be able for ISO 9000 accreditation. This is an internationally recognized standard of quality that has a major impact on how your organisation itself and the process that are undertaken are viewed by the public/possible customers. Having this accreditation will also greatly benefit the organisation from a financial point of view. Getting insurance for large companies can a massive financial burden and being ISO 9000 approved means you are more likely to be insured. This will help protect the organisation from possible liable action. The main benefits internally are a new streamlined system for operations. Increased workmanship due to work ownership/accountability and this leads to constant quality. Increased readiness for the future market and a removal from a reactive decision making process and overall improved stability within the market and increased staying power. Disadvantages of TQM: A main concern of implementing total quality management is the initial set up cost. Here employees will have to attend training that will take away from their usual duties and cause a dip in productivity. Due to all the changes implementing TQM will cause, there is a school of thought that thinks employees will doubt the security of their positions. This may lead them to becoming resistant to change and as a result, slow down the implementation stages and the efficacy of TQM. The results which are desired from TQMs implementation may also take years to see, this can lead the employees feeling that their input was of little use and the project was a waste of time. TQM can also tie a business to a certain set of plans that may span years. This can lead the company down an inflexible route when it comes to future prospect and developments. Instead of the company continually focusing on the goals TQM was supposed to tackle, the main focus in put on finishing the implementation stage. As a result, the company ends up with a major organisation change but the highlighted problems still exist and more time will have to be delegated to solving these at a later time. This again all leads to a drop in current productivity and the business retains its previous efficacy with no notable improvements being recognisable.

The Unjust Execution Of Socrates :: essays research papers

The Unjust Execution of Socrates In the vortex of life, many evils have transpired. Vices such as plagues, unforeseen deaths, and corruptness. Among the tragic acts of malefic proportion was the death of the Greek philosopher, Socrates. He tried to prove and invalidate many theories through reasoning, and he was murdered for his beliefs. His execution was not justified because the charges that were brought against him were false and unfounded. The fist crime that Socrates was charged with was that of impiety. This charge was invented primarily to discredit him and make him unpopular with the citizens. The charge was that of not acknowledging the same gods that the state believed in. Throughout the book, Socrates refers numerous times to the fact that it is because of the gods that things are as they seem to be. "Do you suggest that I do not believe that the sun and moon are gods, as is the general belief of all of mankind?" (57). The fact that Socrates did not publicly speak about the gods attributed to the fact that the charge was heresy. Socrates maintains that he is not like other philosohers. He is a free-thinker, and his beliefs are those of private and intimate thoughts of Gods. Socrates also states that he is not a teacher, however he was not at all happy with the analogy, but took it as a compliment and used it in his defense. He used these accusations to his advantage by saying that he never charged charged anyone for believing or listening to them. The combination of these arguments should have cleared Socrates of the charge of heresy. The second charge brought against Socrates was that of corrupting minors. Socrates battled this charge through the use of the same arguments. The argument that he did not consider himself a teacher, the fact that he never accepted any money for talking or listening to people, and the fact that he believes in gods are what Socrates used to defend himself. By confronting the accusation that he was corrupting the minors, Socrates tried to clear himself by manipulating his arguments so that Meletus, Anytus, and Lycon (the men who brought both charges against Socrates) had to answer questions about these charges. When the questions of Socrates were placed before Meletus, his answers seemed to have proven that Socrates was innocent. However, when the verdict was announced, it demonstrated the opposite. Upon hearing the verdict, GUILTY, it was plain to see that the Greek assembly was like every other political assembly, corrupt. "I should never have believed that it would be such a close thing; but now

What Do You See as Some of the Crucial Roles of Informal Language in Contemporary Australia?

Informal language has a variety of functions in Australian society. What do you see as some of the crucial roles of informal language in contemporary Australia? Informal language has a variety of functions in Australian society. The main function of informal language has to do with Australia’s culture. Slang and informal language gives a sense of belonging, pride, mateship, informality and laid-backness, which is an accurate description of a typical Australian. In Australian society slang is a common feature of spoken and written conversation. The expletive bloody is very common in Australian language. Bloody is quite typical of Australian language that it can be used as a hyphen in many various words and phrases, for example â€Å"fan-bloody-tastic†. The suffix on the end of bloody is another feature worth noting as it does emphasise the Australian accent. Bloody has now become an important indicator of Australianness and of cultural values such as friendliness, informality, laid-backness, and mateship (Kate Burridge, Gift of the Gob, ABC Books 2012). The word mate, which is another way of saying friend, is typical Australian slang and it is mainly used in an informal context. The word mate suggests openness, at least to a relationship of equals (Richard Castles, The Big Issue 4-17 November 2008). The openness created from using the word mate is a positive face feature possibly leading to build rapport. There are right and wrong times to use slang and with the word mate for example, calling a woman mate runs the risk of offence, as it's an ambiguous word and in a formal situation like a job interview, using the word mate especially referring to if it is your boss, is not something that is acceptable depending on the relationship with the person.

Into the Wild Reaction Paper - 1289 Words

Into the Wild Reaction Paper Dawn MB Nyberg COLS-100 Ever wonder what it would be like to be snow-bound, scared, alone, cold and hungry out in the wilderness of Alaska? Christopher McCandless knew and he knew it well; he knew that feeling so well, that he died. I don’t think he was a man with a mental illness or any personality disorders; even though Jon Krakauer states that,†it’s not clear that much of values is learned by reducing Chris McCandless’s strange spiritual quest to a list of pat psychological disorders.†(184) I do, however think Chris lived a life according to his parent’s wishes up until he graduated from Emory University when he decided to become â€Å"his own person† and venture out on his own â€Å"sabbatical†;†¦show more content†¦I also need companionship and love from another human being. I am not able to live without human contact, as he was. I would literally die of depression. Maybe he died of depression, even though as Jon Krakauer states,â₠¬ that the final journal entry of Chris McCandless where he penned a final adios â€Å"I HAVE HAD A HAPPY LIFE AND THANK THE LORD. GOODBYE AND MAY GOD BLESS YOU ALL!† (199). I enjoyed reading about Chris McCandless, though I did not care to read so much about Jon Krakauer and what his ventures were. It was like he was trying to â€Å"one-up† Chris, and this book was supposed to be about Chris McCandless, so I thought. I thought Krakauer was Arrogant and self-centered and we â€Å"little people† seemed beneath him. I may choose to read another book of his to see if Krakauer puts himself as much in that book too. He did keep me interested and I guess that is what is intended by authors. Chris is another story. It is hard for me to say that I don’t like him having five children of my own and three of them being boys each of them having their own strong personalities. 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Recommend Analyze Range Of Plans And Budgets Roberta Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3845 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Those are available to Roberta to enable her to monitor and control all of her business activities. Also to discuss the external and internal factors that may influence the establishment of Robertas plans and budgets. 2. Don’t waste time! Our writers will create an original "Recommend Analyze Range Of Plans And Budgets Roberta Finance Essay" essay for you Create order Analyze the viability of an investment of an investment proposal: Will describe the proposal and the technique and will show that in-depth calculations of the viability of the investment plans available to her and also evaluate the impact of the proposals on the business and provide her with the best investment plan available for her at the end of this part. 3. Undertake research of two large public limited companies (PLC) and in that transport companies- with a view to understand the business better a performance audit of two companies have been taken and we also took the financial statements and other relevant information. We will also discuss the potential limitations of the analysis. Part 1 Roberta Kelly is currently going through the expansion period or we can say the business is growing rapidly and as the business is increasing the handling of the business is also getting tougher for Roberta. As she is the only one who has to stand there and solve all the problems t hat are coming up, though each of the business is having the manager but she fights with the problem herself. Whenever the business is in the growing period or in a starting period we actually plan things and we divide the work of the organizations into different departments. And where in which we need to recruit people. The range of plan that Roberta can look up to are as follows 1} to manage her financial data what she can do is she can create the departments within the organization and allocate the work accordingly to the department they belong. With the help of this the work would be distributed properly amongst the people and the organization and she can get the data of everything very quickly. In this case she need not take care of all the things. Like if she needs the information of the cash availability in the organization she can just ask it to the cash collection department and can see the available balance if she wants to see the sales of the company with in a peri od of time she can get that information from the sales department. Hence we will discuss all the departments that are necessary for her and the budgets that are necessary for Roberta to take care of her expanding business. A budget is an important tool of planning, controlling, motivation, and coordination. Budgets can help in Identifying the problems in business and promotes forward thinking by planning. A Distinction is made Between short-term planning and a long term planning, alternatively known as strategic or corporate Planning. There are number of purposes of budgeting, which include: 1. Planning 2. Coordination 3. Control 4. Communication 5. Resource Allocation 6. Motivation 7. Performance Evaluation BUDGET IMPLEMENTATION As we have noted, an organizations controller plays a vital role is designing and coordinating the budgeting process. A budget may have to go through many corrections and changes in it before it has the approval of the budget committee. Once the committee approves the budget the periodic report from all the different managers of the concern department will allow the committee to keep the eye on the companys progress and attaining budget targets. Successful budget implementation depends on two main factors clear communication and the support of the top management. In general, budgets can be classified into two primary categories (Cohen, Robbins, Young,1994, p. 171): 1) Operating budgets: Operating budgets consist of plans for all those activities that make up the normal operations of the firm. The main components of the firms operating budget include sales, Production, inventory, materials, labor, overheads and RD budgets. 2) Financial budgets: Financial budgets are u sed to control the financial aspects of the business. In effect, these budgets reveal the influence of the operating budgets on the firms financial position and earnings potential. They include a cash budget, capital expenditures budget and Performa balance sheet and income statement. Service revenue budgetO P E Service overhead budget Labour Budget Selling and administrative expense budgetR A T I N G Budgeted income statement F I N Cash budget Budgeted balance sheetA N C I A Capital expenditure budgetL James Oscar mckinsey 1922 budgetory control With the help of the above figure we can clearly understand how an organization does depends on the budgets. It is indeed very necessary to allocate the funds appropriately to all the departments in the organization. The normal departments that an organization need or have are the sales department, purchase department, collection department, research and develo pment, production department. And the budgets that are necessary for Roberta are the sales budget, production budget, capital expenditure budget, cash budget, administration budget, stock budget. The above mentioned are few budgets that are basically needed in any organization. The problem Roberta is facing in her organization is that the work is not being allocated properly and she has to handle each and every thing with oneself. And to solve this she has to create the departments and for them she has to design the budget and allocate funds accordingly. Let us now go ahead and see how these departments work 1} sales department- this department takes care of the sales and with the help of that we can see whether the business is making profits and are the sales are increasing or decreasing and will help us to take the necessary steps. Ex- with the help of this department the information of the sales of the company it would be easy for Roberta to pull it up and she can have the record of the sales of the company quarterly, half-yearly, and yearly. This will help her to improve the performance of its company. 2} Accounts department- in this department all the transactions that have taken place will have an entry and this department maintains all the records of the cash inflows and outflows. Incase if there is some problem in the organization with the payment made or payment received we can just contact this department and we will get the relevant information. In this the employees do not go to the Roberta and discuss this problem they can themselves cross check it with the accounts department. In this way Roberta is not being disturbed much with such small things. Ex- if Roberta has to see the balance sheet of the organization and check the performance of the organization. This department will provide her all the information. 3} Marketing department- this department takes cares of all the marketing plans that have being designed by the company for the particular year. This is one of the important departments as all the sales of the company depends directly or we can say it as indirectly on how we market our products and services. If we have marketed our products and services in a very good manner we can gain the goodwill and we can also increase our market share as the sales increase and the people are kept aware about the products that we offer to our customers and services which we render to our customers. This departments main job is to look onto our marketing strategies and how it is being affecting on our customers as well as our competitors. Ex- If the marketing strategy that has being approved and implemented to increase the performance of the company in the current year and is not performing well we can make it out with the help of this department and hence we can design another strategy and can implement it. We can also see the cost efficiency of the strategies and choose one amongst them which will give maxim um outputs with minimum inputs. OUTSOURCING OF WORK The other thing that the Roberta can do is she can outsource the work to some other company where the other company takes care of all the transactions on her companys behalf and she can concentrate on her own business and try expanding it. She can pay the nominal amount to other company and in return they will handle its business. The main thing over here is to look for the company which is very well known in the market and has goodwill in the market. Part 2 Capital investment may be considered to be a part of capital budgeting process. It involves both the selection of long-term investments and financing of them. And these 4 different methods of capital investment will surely help Roberta in understanding and can further plan if she wants to take the project or not. Below mentioned are the 4 different types of method of capital investment. They are as follows 1. Payback period. 2. Accounting rate of return {ARR}. 3. Internal rate of return {IRR}. 4. Net present value {NPV}. These methods helps us to know whether our money has been invested properly and can get the return on investment {ROI} with the desired time and with the help of these methods we will also be able to know which type of project is beneficial for our company for instance if we have 2 or more than 2 projects to invest in .with the help of these investment methods we can check the profitability of our organization in the near future and can measure the t hreats or benefits if we have any in long run and in the short run as well .. Now I will go in little depth of all the four methods and explain it individually which make a clear picture about how these methods are different from one another and which one is best suitable for the particular organization. 1. Payback period the number of years it takes the cash inflows from a capital investment project to equal the cash outflows {Corina Pentland, course material 2010} Payback period is measured in term of the net cash flows. We take the total cost of investment which we call it in a financial management language as capital. In this method our basic concern and the main information we need is to see the cash inflows and the cash out flows. In other words we see the amount that has been recovered in a particular year and how much more is yet to be recovered. If we have two or more than two projects we can measure when we can recover the amount invested in the project with the help of payback period and we can which of the two projects is beneficial of our organization and which one is suitable for us to invest our money into . THe earlier the payback period from the project or the business is supposed to be the better to invest into. And in the context of Roberta getting the proposal of overtaking its one of the suppliers business and the amount she is expected to invest in this project is 1300000 and as per the calculations done according t o the payback period method she will start making profits after fourth year and before the start of sixth year that is somewhere in fifth year. In fifth year she will get back her money that she has invested in the project. So according to me if Roberta has been thinking about the future and she is more concern about running the business and investing the money into that project in respect of the long run basis then it is good enough. Because whenever a business is been started the person who starts the business or the organization who starts the business knows very well that they cant get the immediate profits and they plan their strategies of the business accordingly and which helps them to serve better over a period of time . As per the question the Roberta had been approached by Sunil Patel to sell his transport maintenance business and he asked Roberta if she is interested in an acquisition. As the Initial Cost is being given  £1.3m and she is going to save  £200,000 per annum and Sunil has provided a five-year budget i.e. Year 1  £80,000 Year 2  £90,000 Year 3  £100,000 Year 4  £110,000 Year 5  £120,000 Therefore as the Roberta is going to save  £200,000 per annum Then the cash flow for the five years is Years Cash Flow Cumm. C.F Year 0 1,300,000 1,300,000 Year 1 280,000 1,020,000 Year 2 290,000 730,000 Year 3 300,000 430,000 Year 4 310,000 120,000 Year 5 320,000 200,000 Therefore the Pay Back period is in the 5th year Cumm. Cash Flow is 200,000 If assume that cash=profit Average Profit =  £200,000/5 =  £40,000 Capital Employed =  £1,3 00,000 2. Accounting rate of return Accounting rate of return compares the profit of a project with the capital invested in it. {Corina Pentland course material 2010} The accounting rate of return is very much similar to ratios. The main benefit of using the accounting rate of return is that is very easy to understand and to calculate as well. In ARR we take all the installments and then calculate the profits i.e. average annual profit. In this all the cash flows are used and taken into consideration. The ARR mainly focuses on profit. And higher the ARR the higher are the profits of the organizations. The main disadvantage of ARR according to me is that it doesnt take the time value of money. Because money value depreciates over a period of time it always needs the return of the investment continuously for example if I would have saved the money 1000 GBP in 2000 and now if I take it out and spend that 1000 GBP on purchasing something I would get only few things when compared to the money if I have spend it in the year 2000 so what is happening here the value of money id depreciating. And in ARR it also doesnt take much of time into consideration and if Roberta is ready to invest her money for a long period of time then it is useful for her. As in the case mentioned Roberta doesnt have any other projects as an option if she wanted to invest in. if she had any then we could have calculated the ARR of both the projects and suggested her with the best one between the two . In this project the average annual profit according to the calculations made is 40000 and the calculated ARR percentage is 3.0769 and which may increase over a period of time. A.R.R = Average Profit/Capital Employed x 100 Average profit = 200,000/5 = 40,000 Therefore, A.R.R = 40,000/13, 00,000 x 100 = 0.0307692100 A.R.R = 3.0769% 3. Internal rate of return {IRR}- an alternative method of investment appraisal based on discounted net cash flow is known as internal rate of return. However, instead of discounting the expected net cash flows by a predetermined rate of return, the IRR method seeks to answer the following question: What r ate of return would be required in order to ensure that the total NPV equals the total initial cost? In theory, a rate of return that was lower than the entitys required rate of return would be rejected. In practice, however, the IRR would only be one factor to be taken into account in deciding whether to go ahead with the project or not. {Accounting for non-Accounting students 5th edition 2001 from J.R.DYSON pg no 409} The rate of return on an investment seeks to determine the rate of return needed to ensure PV equals the initial cost: NPV = 0. {Corina Pentland course material 2010}. The internal rate of return basically gives you the rough idea of the return that we get on our investment. But it helps you compare the data and which is very helpful for the organization. With the help of IRR we can take effective decisions for our organization. In this case we use more than two discount rates to get the better picture for our returns on our investment. This is called trial and error method. In the case of Roberta investing in the project and the project is expected to be 1,300,000. If the company expects the rate of return of 5%, the project will not be accepted as its NPV is negative however the required rate of return is 4%, the project will be accepted, because the NPV is positive. The project will be profitable provided that the company does not require a rate of return in excess of 4%. In this we assumed another different percentage and then we are going to calculate, I am going to take 4% difference. Years N.C.F 4% diff. P.V Year 1  £ 280,000 0.962 269,360 Year 2  £ 290,000 0.925 268,250 Year 3  £ 300,000 0.889 266,700 Year 4  £ 310,000 0.855 265,050 Year 5  £ 320,000 0.822 263,040 Total 1,332,400 Less Cost 1,300,000 (32,400) I.R.R = +rate+ (+NPV/the two NPVs added together x range of rates) Therefore, I.R.R. = 4 + (32,400/32,400+5,200) x 1 = 4 + (32,400/37,600) x 1 = 4 + 0.861 x 1 I.R.R. = 4.861 4. Net present value {NPV} the Net present value method recognizes that cash received today is preferable to cash receivable sometime in the future. {Accounting for non-Accounting students 5th edition 2001 from J.R.DYSON pg no 407} In NPV method we calculate the annual net cash flows expected to arise from the project. With the help of NPV method we will be in a position to know whether the business is going to make profits with the given figures and the given time or not. And if the NPV is positive we can accept the project and can go ahead and invest the money in that project and if the NPV is negative then it risk investing in that project as it will not give to profits in the given period and you might have to wait for some more time. And NPV also undertakes the time value into consideration which is very beneficial for the organization. And in the above project Roberta should not take this project according to the NPV method the NPV is negative and she has to wait for the some more time to cover her invest and start earning the profits. Years N.C.F 5% diff. P.V Year 1  £ 280,000 0.952 266,560 Year 2  £ 290,000 0.907 263,030 Year 3  £ 300,000 0.864 259,200 Year 4  £ 310,000 0.823 255,130 Year 5  £ 320,000 0.784 250,880 Total 1,294,800 Less cost 1,300,000 (5200) As per the N.P.V is (5200), which is not good for the company because it is negative. Company is not going to repay their cash in the 5-year period. PART 3 RATIO ANALYSIS Company Name British airways A PROFITABILITY RATIOS 2009 2008 1 Net Profit Margin {net profit(before tax and interest)/turnover}X100 4.46% 10.53% 2 Return on Net Assets or Capital Employed {net profit (before tax and interest)/capital employed(net assets)}x100 21.72% 28.26% 3 Gross Profit Margin (gross profit/turnover)x100 2.45% 10.03% B LIQUIDITY RATIOS 4 Current Ratio Current assets/current liabilities 0.566 0.890 5 Quick Ratio or Acid test Ratio Current assets stock/ current liabilities 0.535 0.858 C EFFICIENCY RATIO 6 Debtors turnover (debtors/turnover)x365 21.51 24.42 7 Stock turnover Ratio Cost of sale/average stock 73.40 70.35 8 Creditors turnover Ratio (creditors/turnover)x365 113.49 119.82 D GEARING OR LEVERAGE RATIOS 9 Total debt Ratio total liabilities/total assets 0.823 0.711 10 Debt Equity Ratio total debt/total equity 2.437 1.391 11 Gearing Ratio Long term liabilities/equity shareholders fund 2.733% 1.482% E INVESTEMENT PERFORMANCE RATIOS 12 Earnings Per Share Net profit(after tax and preference dividends)/no of ordinary shares 32.6 61.9 RATIO ANALYSIS COMPANY NAME EASY JET A PROFITABILITY RATIOS 2009 2008 1 Net Profit Margin {Net Profit (before tax and interest)/Turnover} x 100 2.051% 4.664% 2 Return on Net Assets or Capital Employed {net profit (before tax and interest)/capital employed(net assets)}x100 4.18% 8.62% 3 Gross Profit Margin (gross profit/turnover)x100 2.25% 3.85% B LIQUIDITY RATIOS 4 Current Ration Current Assets/Current Liabilities 1.39 1.54 5 Quick Ratio or Acid Test Ratio Current Asset Stock/ Current Liabilities 1.326 1.326 C EFFICIENCY RATIOS 6 Debtors turnover (Debtors/Turnover) x 365 33.09 36.59 7 Stock turnover ratio Cost of sales/Average Stock 19.44 11.65 8 Creditors turnover Ratio (Creditors/Turnover) x 365 102.74 100.87 D GEARING OR LEVERAGE RATIOS 9 Total debt Ratio Total liabilities/total Assets 0.644 0.587 10 Debt-Equity Ratio Total Debt/Total Equity 0.997 0.709 11 Gearing Ratio Long Term Liabilities/ Equity Shareholders Fund 0.997% 0.997% E INVESTEMENT PERFORMANCE RATIOS 12 Earnings Per Share Net profit(after tax and preference dividends)/no of ordinary shares 16.9 19.8 Profitability ratios: Gross profit margin and net profit margin ratios are used to make sure that managers, owners, employees and potential investors know the profitability of the above mentioned two companies. According to the calculations net profit margin of British airways for 2009 is 4.46% and in 2008 it was 10.527%. As the economic recession that has hit many countries in the world UK is one of them and many business have being facing losses but it was not with the easy jet its net profit margin was not effected too much, in 2008 it was 4.6639% and in 2009 it was 2.051% . Both the companies have faced losses due to the economy slow down but easy jet managed to incur less losses than British airways. Liquidity ratios:- liquidity is the one of the key factor for any business. As the need of money may occur any time so the business owners should be in a positio n to get the money and should have the availability of money. The current ratio of British airways for 2009 is 0.566%and that of easy jet is 1.39% and the current ratio of British airways in 2008 it was 0.89% and that of easy jet is 1.54%. According to the percentages derived we can see that easy jet has more cash availability than British airways. Efficiency ratios: The British airways debtors turnover in 2009 was 21.51% but in 2008 it was 24.42% and the creditors turnover in 2009 was 113.49% which is too high and that of easy jet the debtors turnover ratios was 33.09% and their creditors 102.74%. If we make the comparison of the ratios of easy jet and British airways the ratios of easy jet are very good. Gearing ratios: The gearing ratios for British airways were 2.73% in 2009 and in 2008 it was 1.482%. And for easy jet it was 0.997 and 0.709. According to the ratios the British airways is highly geared and it would very difficult for them to borrow money from the potentia l market. And for the easy jet it is very good because they still have people and institutions in the market to borrow money from. Investment performance ratios: The earning per share ratio of British airways in 2009 was 32.6 per share and that of easy jet shares are 16.9 per share. The earnings per share ratio of British airways is good. But after the hit of economic slowdown the British airways were struck badly because the earning per share ratio for them in 2008 was 61.9 per share and that of easy jet shares it 19.8 per share . Hence the easy jet didnt got struck too badly in the economic slowdown and have managed to incur less losses. CONCLUSION Looking at the above profitability shets we can say that easy jets performance is better than the British Airways. Easy jet has a safer capital structure than British Airways. Both to creditors and the debtors it has a strong debt paying ability and low debt risk in the long run. British Airways can improve its ratio by reducing its long term borrowing. However, we should also be aware of the limitations of the ratio, such as price changing, window dressing, lack of qualitative information, etc and make adjustments necessary. REFLECTIVE STATEMENT From the above assignment of financial management given by Corina Pentland i have learned how to analyze the companys profitability and also how to use the accounting tools and techniques to analyze the profitable project suitable for the particular organization. It has being a wonderful experience to read various books of financial management to complete this assignment and have learned many things about accounting which i was not aware of.

Fibroids And Pregnancy Blossomivf India - 761 Words

Fibroids and Pregnancy Blossomivf India By Blossomivf India Jan 4, 2015 Fibroids are non-cancerous tumors of the uterus (womb). Fibroids grow out of the cells that make up your uterus. Uterine fibroids (also called myomas or leiomyomas) are benign (noncancerous) tumors of muscle tissue that can change the shape or size of the uterus and sometimes the cervix. They start in the smooth muscle cells inside the wall of the uterus (myometrium). Fibroids usually occur in the form of multiple tumors, although single fibroids are sometimes possible. Fibroids can be as small as a pea or as large as a football. Having uterine fibroids does not increase your risk of cancer. They are almost always benign, no matter how large they get. The fact that approximately 20% to 50% of women suffer from the symptoms generated by fibroid tumors at some stage of their lives suggests that they are quite common growths in the reproductive system of a woman. Age is a factor. Fibroids are more common in women who are 35 years of age or older. Women under the age of 20 rarely have fibroids. These tumors of the uterus tend to shrink after menopause. Studies indicate that black women are nine times more susceptible to fibroids than white women. Furthermore, women who are overweight are more likely to have fibroids because of higher levels of estrogen. No one knows exactly what causes uterine fibroids. But the hormones that regulate your periods, particularly estrogen, are known to play a part. Fibroids

Accounting Financial Analysis Report

Question: Describe about the Accounting Financial Analysis Report. Answer: This assignment is based on the subject area of accounting. The assignment is divided into two parts. In the first part, the focus has been made on the preparation of adjusted trial balance, comprehensive income statement and statement of financial position for the company Weather and Sons. In the second part of the assignment, the discussion is made on the financial positions of two major airline companies in United Kingdom and that are British Airways and Ryan Air. The analysis and comparison of the annual reports and financial position of the companies are done based on the financial ratio analysis. Adjustment with the trial balance Adjusted Trial Balance Amount (in ) Amount (in ) Retained profit 88000 Sales 636000 Share capital 100000 Share premium 200000 Inventory 87000 purchases 230000 trade payables 86000 trade receivables 205000 bank 83900 Motor expenses 12987 Maintenance 12000 Salaries and wages 106000 Administration expenses 33220 Telephone 5687 Heat and light 14300 Equipment at cost 318000 Provision for depreciation equipment 45000 Motor vehicles at cost 45000 provision for motor vehicles 6000 rent 68000 advertising 19118 bad debts 3788 provision for bad debts 2000 long term loan 90000 interest 9000 equipment depreciation 47700 motor vehicle depreciation 11250 prepayments 13000 accruals 22600 Suspense 53000 Table 1: Adjusted trial balance (Source: Created by author) Preparation of Statement of Comprehensive income Statement of Comprehensive Income of Weather and Sons as on 30th June 2013 Particulars Amount () (Debit) Amount () (credit) sales 636000 Closing inventory 50000 Opening inventory 87000 Purchase 230000 Gross profit C/F 369000 Gross profit B/F 369000 Motor expenses 12987 Maintenance 12000 Salaries and wages 106000 Administration expenses 33220 Telephone 5687 Heat and light 9300 Provision for depreciation equipment 45000 Provision for depreciation motor vehicles 6000 Rent 60000 Advertishing 19118 Bad debts 3788 Provision for bad debts 2000 Depreciation on equipment 47700 Depreciation on Motor vehicles 11250 Accrual telephone 4300 Profit before interest and tax -9350 Interest 9000 taxation 18300 Net profit -36650 Table 2: Income statement (Source: Created by author) Preparation of statement of financial position Statement of Financial Position of Weather and Sons for 30th June 2016 Amounts (in ) Amounts (in ) Fixed Assets: Equipment 225300 Motor Vehicles 27750 Total Fixed assets 253050 Current Assets: Closing inventory 50000 Trade receivables 203000 Prepayment of rent 8000 Prepayment of heat and lighting 5000 Bank 83900 Total Current assets 349900 Total Assets 602950 Shareholders' fund: Share capital 100000 Reserve and surplus: Share premium 200000 Retained profit 88000 P/L account -36650 351350 Current liabilities: Trade payables 86000 Accrual tax 18300 Accrual telephone 4300 Total current liabilities 108600 Suspense account 53000 Non-current liabilities: Long term loan 90000 Total liabilities 602950 Table 3: Statement of Financial Position (Source: Created by author) This part of the study has analyzed the financial performance of the two major airline companies in UK and the companies are British Airways and Ryan Air. The analysis has been done based on the financial ratios. The data has been collected from the annual reports of the companies for 2013, 2014 and 2015. The report has mainly emphasized on three categories of financial ratios profitability ratios, liquidity ratios and efficiency ratios. The comparison between the financial performance of these two companies are stated below: Financial ratios of Ryan Air and British Airways from 2013 to 2015 Ryan Air and British Airways are the giant companies in airline industry in United Kingdom. Ryan Air has started its business in the year of 1984 and currently, the fleet size of the company is 355 (Ryanair.com 2016). On the other side, British Airways has started its business in 1974 and it is currently having 295 fleet sizes (Britishairways.com 2016). The financial ratios of the two companies are calculated as per the data available in the annual reports of the companies and stated below: Financial ratios of Ryan Air: Financial Ratios 2013 2014 2015 Operating profit ratio 14.7052 13.076 18.4453 Net profit ratio 11.6564 10.3798 15.329 Current ratio 3.00361 1.51431 0.38225 Quick ratio 3.0022 1.51321 0.38162 Receivable collection period 0.20178 0.18117 0.13557 Inventory turnover period 3.17187 1.80407 0.9721 Table 4: Financial ratios of Ryan Air from 2013 to 2015 (Source: Ryanair.com 2016) In the above table, it can be identified that the profitability of Ryan Air has increased from 2013 to 2015. In 2013, the operating profit ratio of the company was 14.7052, which increased to 13.076 in 2014 and 18.4453 in 2015. This indicates that the operating profit of the company has increased gradually. At the same time, the above table is also disclosing the fact that the net profit ratio of the company was 11.6564 in the year of 2013, which has declined in 2014 to 10.3798. However, the net profit ratio of the company has increased in 2015 by more or less 5% (Ryanair.com 2016). As per the table, the liquidity position of the company has declined during the last three years that means from 2013 to 2015. In 2013, the current ratio of the company was 3.00361, which declined to 1.51431 in 2014 and again declined to 0.38225 in 2015. The same type if result can also be identified in the quick ratio of the company. However, the efficiency ratios of the company enhanced during the last three financial years (Ryanair.com 2016). Financial ratios of British Airways from 2013 to 2015 Financial ratio 2013 2014 2015 Operating profit ratio 5.70003 8.31982 11.1533 Net profit ratio 2.46038 5.99027 22.1301 Current ratio 0.63 0.65122 0.59649 Quick ratio 0.60622 0.62704 0.57211 Receivable collection period 3.51545 4.14242 4.47675 Inventory turnover period 29.1364 32.4933 47.2833 Table 5: Financial ratios of British Airways from 2013 to 2015 (Source: Britishairways.com 2016) According to the above table, the overall financial position of British Airways was average in the last three years. The profitability of the company has increased in 2015, but the efficiency and liquidity positions of the company have moved to negative directions. The operating profit ratio and the net profit ratios of the company have increased at high rate in the last year but before that, the improvement in the profitability ratios was less (Britishairways.com 2016). Apart from the profitability ratios, the financial position of the company is also dependent on the other two ratio categories and that are liquidity ratio and efficiency ratios. The receivable collection period and inventory turnover period of the company are stating that the efficiency of the company has decreased. At the same time, the current ratio and quick ratios of the company are also disclosing the weak liquidity position of the company (Britishairways.com 2016). Comparison between the financial performance of Ryan Air and British Airways According to the above discussion, it can be stated that the financial position and performance of the two companies (Ryan Air and British Airways) were not excellent in the last three years. If the comparison is done between the financial performances of the two companies, then it can be stated that the profitability of British Airways has improved at higher rate than the profitability of Ryan Air. In Ryan Air, the operating profit ratio has been increased by more or less 4% from 2013 to 2015, whereas, in case of British Airways, the percentage increased in the operating profit ratio from 2013 to 2015 was near about 6%. Along with the operating profit ratio, the percentage increased in the net profit ratio was also high in case of British Airways. In the financial year 2015, the net profit ratio has increased by near about 17% than that of 2014. However, in case of Ryan Air, the percentage increased in the net profit ratio from 2014 to 2015 was much lesser than British Airways. The percentage increased in the net profit ratio of Ryan Air in 2015 was only 5%. These results indicate that the performance of British Airways was better than that of Ryan Air. However, Lukic (2015) mentioned that the sudden increase in the profitability of the company creates doubts in the minds of the investors regarding their companys business operations. On the contrary, Dagiliene (2015) noted that improvement in the profitability of the company helps to attract new shareholders and investors. Therefore, if the profitability of British Airways is high then it can attract more investments in the coming financial years. However, the company needs to maintain the high standard of profitability in the future years also. In case of Ryan Air, it can be stated that the company needs to improve its profitability more in order to compete with British Airways as well as the other companies in the Airline industry in UK (Arun, Almahrog and Aribi 2015). Apart from profitability, the financial health of a company also depends on its liquidity position (Uechi et al. 2015). Due to this, while analyzing the financial position of a company, it is very important to analyze the liquidity position of the organization. If the liquidity positions of British Airways and Ryan Air are compared then it can be identified that liquidity positions have been declined in both the companies. However, the rate of decline is high at Ryan Air than that of British Airways. From 2013 to 2015, the percentage decreased in the current ratio of Ryan Air was near about 3%, where as in the same time span, the percentage decreased in the current ratio of British Airways was 0.4%. It is indicating that the performance level of Ryan Air was low than the performance level of British Airways. Along with the current ratio, the quick ratios of the companies are disclosing more or less the same result during the last three years. Percentage decreased in the quick ratio of Ryan Air was near about 3%, whereas the percentage decreased in the quick ratio of British Airways was 0.3%. Therefore, it can be understood that in the last year, the performance of British Airways was better than Ryan Air in terms of liquidity, but the performance of the two companies was not of high standard. However, in 2013 and 2014, the liquidity position of Ryan Air was better than the British Airways. This indicates that Ryan Air has the capacity of quality or liquidity improvement, which the company can utilize in the coming years, if it want to sustain in the market (Garefalakis et al. 2016). Apart from the liquidity and profitability, analyzing the level of efficiency is also very important to understand the actual financial position of the company. The level of efficiency of a company can be understood with the help of the efficiency ratios of the company (Sulkava et al. 2015). In case of the Ryan Air and British Airways, the performance of Ryan Air was better than British Airways in respect to the receivable collection period. The receivable collection period of a company indicates the efficiency of the company in converting its receivables or debts into cash. If the receivable collection period of a company is less then it denotes that the company is efficient in converting the receivables into cash (Rajitha and Babu 2015). Figure 1: Receivables Collection Period of Ryan Air and British Airways (Source: Created by author) In case of Ryan Air, the receivable collection period has decreased gradually from 2013 to 2015. In 2013, the receivable collection period was 0.20178, which decreased to 0.13557 in 2015. On the other side, in case of British Airways, the receivables collection period has increased from 2013 to 2015. In 2013, the receivable collection period was 3.51545, which increased to 4.47675 in 2015. Therefore, it is very clear that Ryan Air was more efficient than that of British Airways. At the same time, it can also be said that British Airways needs to take care of the receivable collection period, so that it does not increase further. On the other hand, if the efficiency level is measured with the help of inventory collection period, then it can also be identified that the performance of Ryan Air was better than British Airways. Figure 2: Inventory Turnover Period of Ryan Air and British Airways (Source: Created by author) The inventory turnover period of Ryan Air has decreased from 2013 to 2015 but in the same time span, the inventory turnover period of British Airways has increased. This indicates that the inventory management system at British Airways was weak than that of Ryan Air during the period of 2013 to 2015. Therefore, from the overall discussion, it can be said that the financial performance of Ryan Air was better in the years of 2013 and 2014. However, in 2015, the performance of British Airways was better than the performance of Ryan Air. However, the efficiency level was always good at Ryan Air. Conclusion In this assignment, the comprehensive income statement of Weather and Sons has been prepared and it has been identified that the company has incurred loss in the financial year. On the other side, in the second part of the assignment, it has been identified that the liquidity position and the efficiency level of Ryan Air are better than that of British Airways. However, in case of profitability, the performance of British Airways was better in last three years. Reference list and Bibliography: Arun, T.G., Almahrog, Y.E. and Aribi, Z.A., 2015. Female directors and earnings management: Evidence from UK companies.International Review of Financial Analysis,39, pp.137-146. Bell, C., 2015.Generic organizational strategy integration impacts on profit margin ratio and inventory turnover in publically traded Oklahoma manufacturing organizations(Doctoral dissertation, INDIANA STATE UNIVERSITY). Bowman, D., Cai, F., Davies, S. and Kamin, S., 2015. Quantitative easing and bank lending: Evidence from Japan.Journal of International Money and Finance,57, pp.15-30. Britishairways.com. 2016. Book Flights, Holidays Check In Online | British Airways. [online] Available at: https://www.britishairways.com/ [Accessed 7 Aug. 2016]. Dagiliene, L., 2015. THE INVESTIGATION OF FINANCIAL REPORTSCOMPLEXITY IN LARGE COMPANIES.Economics and Management, (14), pp.28-32. Garefalakis, A., Mantalis, G., Lemonakis, C. and Vassakis, K., 2016. Determinants of Profitability in Aviation Industry of Europe and America.International Journal of Supply Chain Management,5(2), pp.131-137. Hancerliogullari, G., Sen, A. and Agca, E., 2016. Demand uncertainty and inventory turnover performance: an empirical analysis of the US retail industry.International Journal of Physical Distribution Logistics Management,46(6/7). Joshi, A. and VYAS, D.V., 2015. A study of liquidity ratios of selected private sector banks of India.ZENITH International Journal of Business Economics Management Research,5(5), pp.131-137. Khan, M.N. and Khokhar, I., 2015. THE EFFECT OF SELECTED FINANCIAL RATIOS ON PROFITABILITY: AN EMPIRICAL ANALYSIS OF LISTED FIRMS OF CEMENT SECTOR IN SAUDI ARABIA.Quarterly Journal of Econometrics Research,1(1), pp.1-12. Lukic, R., 2015. The Analysis of Efficiency of Managing Inventories in Trade in Serbia.Revista de Management Comparat International,16(2), p.222. Prommin, P., Jumreornvong, S., Jiraporn, P. and Tong, S., 2016. Liquidity, ownership concentration, corporate governance, and firm value: Evidence from Thailand.Global Finance Journal. Rajitha, P. and Babu, P.C., 2015. A Study on Liquidity and Profitability Position with Reference to ITL Pvt. Ltd.The International Journal of Business Management,3(8), p.98. Ryanair.com. 2016. Official Ryanair website | Cheap flights | Exclusive deals. [online] Available at: https://www.ryanair.com [Accessed 7 Aug. 2016]. Sulkava, M., Sepponen, A.M., Yli-Heikkil, M. and Latukka, A., 2015. Clustering of the self-organizing map reveals profiles of farm profitability and upscaling weights.Neurocomputing,147, pp.197-206. Uechi, L., Akutsu, T., Stanley, H.E., Marcus, A.J. and Kenett, D.Y., 2015. Sector dominance ratio analysis of financial markets.Physica A: Statistical Mechanics and its Applications,421, pp.488-509. Accounting Financial Analysis Report Question: Discuss about the Accounting Financial Analysis Report. Answer: Introduction Union Cement Company is the foremost producer of cement that had established in the United Arab Emirates in the year 1972. The company is PSC, a publicly quoted firm that has been engaged in manufacturing and marketing of different varieties of Portland cement. It distributes and sells across the world by way of direct selling[1]. The company is engaged in the process of manufacturing, marketing and distribution for different oil-well cement products and kinds of Portland across the UAE. The production plan of the company is situated at Khor chair located at Ras Al Khaimah Emirate. Stocks of corporate entity are listed on Abu Dhabi securities exchange. The report herein presents the financial positioning of the company for the year 2015 in comparison to the year 2014. On the basis of ratios ascertained a detailed analysis of directors report has been made further highlighting the financial status of the company. Moreover, the quality of earning of company and evaluation of statement of cash flow is done to assess the credentials of the company. The professional comparison is made with critical arguments by undertaking a group as a benchmark and lastly through the evaluation of assessment recommendation is to be served. Director report Directors report is a document, which enlists details about the company state and its compliances with a brief on the financial, accounting, and corporate social responsibility standards followed by the company. The board of directors of Union has sanctioned and reviewed the performance of Union Cement Company (PSC) by undergoing through its consolidated statements as of 30th June 2015, reflecting the financial position of the company and its subsidiaries (together signifying the Group). The abridged consolidated statements for six months period are issued comprising of its overall as well as comprehensive income, variations in equity and cash flows. As per the reports, there is a clear declaration that the financial information stated and prepared considering all material concerns and in accordance with the International Financial Reporting Standards (IFRS) complying with the Interim Financial Reporting[2]. The directors report does not serve full financial statement details but rather presents the results ascertained from them. Thus, presenting fair and all material statements. The contrast between financial statements of the year 2015 with the year 2014 is made. The company records as per director's report showcase consolidated sale revenue of AED 640.472 million through the year 2015 in comparison to AED 548.322 million for the same period in the year 2014. The results are clearly indicating a rise in the cost of sales by a ratio of 14.94%; further Gross profit is realised by AED 160.205 then to AED 130.486 million. Moreover, the Operating profits recorded in the year 2015 are AED 95.121 M compared to AED 71.307 M for the year ended 2014. The ratios ascertained vividly provides positive rise showcasing enhancement in their overall level of performance. Net consolidated profits that are realised during the period 2015 amounts to AED 103.671 M than AED 84.842 M meanwhile the net profit is attributable towards the shareholder of the company in the year 2015 amounted to AED 95.410 M than the AED 76.098 for a similar time period of the year 2014. Thus, increasing the EPS (Earning per share) from 0.11 AED in 2014 to 0.14 AED for the same period in the year 2015. Further, the shareholders are paid dividend amounting to 10% of the paid-up capital which amounted to AED 66.944 million for the year 2014. Thus, it can be seen from the directors report that the state of the company is progressive and it is keeping up the pace to satisfy its stakeholders with positive increment in the overall profits of the company. It serves to provide maximum benefit to its shareholders by giving an increasing dividend per year and the rise in overall earning per share of the shareholders in accordance to the directors report. Thus it further puts through the operating and financial review of company setting out the information of the potential areas of market and structural capacity of company to expand as well as exploit the new opportunities. The directors report states the long-term interest of shareholders, employees, community etc. Company surpass the needs of stakeholder by meeting its interest implying that it upkeeps to satisfy them by passing on the benefit of good performance. It assures to put through good statics of company through support from the company stakeholders. Effective directors report enhances interest and perspective of stakeholders towards the company. The positive balance in directors report and further sharing of profits amongst the shareholder's repose confidence in them towards the company. Moreover, stakeholders perceive the consistent company growth through such positive profit ratios and facilitate them to make a constructive investment in them. Information provided in the directors report of the company is viable to the financial statement as its summaries entire financial aspects in an effective manner. By considering the provided information, stakeholders will be able to have a brief overview of financial performance along with considering their future prospects in order to make rational decisions related to business. Lastly it is imperative for company to maintain its business reputations and this indeed is done through directors report, which helps in promoting the success of the company. But on the contrary it can be seen that the directors reports doesnt relocate or describe the principle risk and uncertainties that are being faced by the company. Additional matter for concerns should be included in directors report that holds more of strategic importance to the organization. While it is of significant importance that the business covers up within its report the areas of opportunity and investments it seeks to exploit in near future. It can be seen that a comprehensive balance sheet analysis of company performance has not been expressed in full. The content and quality is dependent on how does the directors report effectively communicates with shareholders about the promotion as well as success of the company. The report is focused towards past information only and no future prospects are being communicated. According to, it is of paramount importance to deliver the strategic aims and objectives KPI (key performance indicators) that shall be helpful in communicating deals to is stakeholders to measure progress against the current achievement with future accomplishments. The director report should include a brief discussion of future developments and its impact on the current performance and strategy of company. Quality of Earnings and Earning Sustainability. Revenue and Profitability analysis Table 1: Revenue and profitability analysis of past three years 2015 2014 2013 Revenue 640,472,000 100% 640,472,000 100 640,472,000 100 Gross profit 160,205,000 25% 130,486,000 23.8% 103,414,000 19.58% Profit for the year 103,671,000 16.2% 84,842,000 15.5% 50,868,000 9.63% Sales Growth 25% 24% 20% Return on Sales 16% 15% 10% Return on Assets 8% 6% 4% Figure 1: Revenue and profitability of past three years Figure 2: Revenue and profitability analysis of past three years In reference to the financial data served by the company, a clear comparison and revenue analysis of company can be drawn. The Gross profit indicates about the company revenue it earns after deducting the expenses associated with such revenue. As per the trend is shown in the above table, it can be seen that the revenue is consistent and gross profit calculated on such revenue is progressive[3]. Similarly looking at the profit for the year is also increasing with every consecutive year. The sales growth is rising, and so is the return on such sales. In tune with all the rising ratios signifying progressive growth, the Return on Assets is also mounting depicting the uprising state of the company. Technologies used in production Union Cement Company is one of the largest cement production company across the entire gulf region. They serve diversified cement production capabilities such as Oil Well Cement, Sulphate Resistant cement, Moderated Sulphate Resistant Cement and Ordinary Portland Cement. To meet the customer demands it also serves blended cement as its plants are well equipped with the own art of technology for enhanced production process. The company has erected and commission technology and project designing from international IHI, Japan and CMEC China. The plan installed in the Middle East has an over the capacity of 10000 TPD and hold competence to produce up to 12000 TPD. The factory makes use of the latest Japanese Process technology for the most effective and modernised process[4]. Company to serve the best possible quantity with quality to the consumers installs the best of Equipment. Such equipment is large and ensure optimum utilisation of resources serving utility products. Customer enrichment is also one of the key factors that are looked upon by the company serving as per convenience blend of cement products with the 100% quality assurance. Quality and Standards Since 1980, the production and manufacturing process is done keeping in mind the customer requirements and quality. The company mission is to attain complete customer satisfaction by serving best in class product and services that meet up their expectations and requirements. UCC has obtained ISO 9000 certification as being the first cement manufacturer in the Middle East[5]. Company for at par quality excellence and world-class competencies also obtains API (American Petroleum Institute) Q1 certification. This Q1 system certification is provided for organisation Quality Management System. Moreover, the ISO 9000 certification is also obtained by the organisation in 2000 towards its dedication for environmental management system. The organisation key focus is on enabling and enriching the client by overall improvement in organisation performance to gain the best market positioning Innovation and customer satisfaction With the increasing competition in the market, organisation are striving to attain greater innovation in their product and services. UCC has effectively realised the significance of Product Innovation that can help in sustaining its growth. Based on the facts of the company it seeks to make both social and technical quality management along with innovation[6]. The product innovation has helped it in providing the customer's specialised product and services with efficacy. The technical improvements made by the company are to an extent to which its plant products are framed to reduce complication in manufacturing. Moreover, to also reduce its impact on ecological footprints UCC has involved into renewable energy and efficiency solutions. Cement plant of the Union Cement Company, in Ras Al Khaimah, UAE has CDM project which involves installation of a system through waste heat recovery can be made by generation 82 MWH of zero emission electricity each year. Thus it has been both social and technically innovative company. Conclusion and Earning Sustainability The progressive trend in the profit ratios showed above it can be seen that company is moving forward and not stagnant or downward graph scale. Thus, if the trend would have been irregular then there would have been uncertainties in earning sustainability but since it is clear from the above ratios that the growth is consistent and unwavering ensuring positive earnings in future[7]. The product innovation has also further seen to provide competitive edge across the entire Middle East. Since, the investors are keen towards ascertaining the valuation ratios and comparing them across the companies it is important that company should look on to maintaining the sustainability of company earnings. It can be seen that currently the Union Cement Company is having positive earnings, which are not uncertain rather it is growing across the consecutive year. This increases the possibility of company to maintain this growth in future as well. The continual increment in earning should be maintained and must be competitive to achieve a positive earning sustainability of company. It can be seen that the ratios stated has helped investors in assessing the extent to which the firms reported earning are free from any errors or maneuverings reflecting the quality of firms earnings. Evaluation of Cash Flow Statements of Union Cement Company Cash flow from operating activities. While analysing the cash flow statements many ratios provide indicators to measure the company's quality of investment[8]. Investors often track these performance indicators to detect the ability of the company to convert sales into cash. Thus it is a good sign that the companys cash flow from operating activities has been increasing annually. The Cash flows from operations of a company mainly measures the cash-generating abilities from operating or current assets[9]. The net cash from operations reflects the amount of money that flowed into the business during the year less depreciation, and other non-cash charges. Table 2: Statement showing Cash flow from operating activities Particular Formula for the calculations 2013 2014 2015 Net sales to Operating Ratio Net Operating cash flow/ Net sales 4% 4.5% 1.57% Free Cash Flow Net operating cash flows capital expenditures (907278) (862970) (817470) Free cash flow coverage Free cash flow/ operating cash flow (6.99) (7.16) (5.80) Analysis of the Above Ratios It can be observed that in the year 2015 the net sale to operating ratio was significantly low as compared to the previous two years. However, the cash flow from operational activities and the profit was the highest in 2015. Thus it is good sign that the companys cash flow from operating activities has been increasing annually[10]. Thus a low net sale to operating ratio is to a worrisome indicator for the company. Union cement has a consistent negative free cash flow which indicates that the company is not capable of generating sufficient cash to support the business. Particular 2013 2014 2015 Cash flow from operating. 129634 120476 140832 Net cash flow from investing activities (3,340) (13,955) 16664 Net cash flow from Financing Activities (87186) (100930) (81232) Analysis of the cash flow statements The cash flows from the operating activities were the highest in the year 2015.Union Cement has constantly negative cash flows from the investing activities in the year 2013 and 2014. The reason behind these negative cash flows might be that the company is reinvesting its capital by at least the rate of depreciation[11]. Thus, it is not always bad to have a negative cash flow from investing activities. Nevertheless it may need further evaluations in detail before the final conclusion is drawn from the company's investing activities. However, in the year 2015, the company had inflow of cash from the investing activities. The reason behind such cash flow can be the proceeds from the disposal of fixed assets, investment instruments sale, and the proceeds from the collection of loans and insurance. The cash flow from financing activities was much higher in 2015 at 161034. The cash flows from the year 2013 and 2014 were 81553 and 87144, respectively. Figure 1: Cash Flow from Operating Activities for the Year 2013, 2014 and 2015 Figure 2: Cash Flow from investing and Financial Activities for the year 2015, 2014 and 2013. Assessing the Financial Credit Quality Before investing into debt security of company, investors always determine the entitys capability to meet its financial obligations. Independent and objective assessments of companies help investors to decide the risk of a particular security. For the purpose of judging the investment quality of a bond or mutual fund, credit quality is considered to be the primary criteria [12]. This aspect reports the investors the credit worthiness of the company and risk of default[13]. Thus gaining insight into investment environments is very important to understand the risks and advantages associated with the investment. For this purpose essential tools known as credit ratings aids in making investment decisions Professional Ranking Comparison of Union Cement Company with its competitors and Industry Table 3: Comparison of Union Cement Company with its competitors and Industry Union cement Gulf National cement RAK Industry average Revenue 640,472,000 612,26,174 261,541 335,174,306 46,24,03,370 Gross profit 160,205,000 97,493,467 39,800 51,404,871 8,72,25,834 Profit for the year 103,671,000 71,439,530 93,530 15,536,581 7,10,44,277 Sales Growth 25% -22% 14.56% -17.61% Return on Sales 16% 8.57% 2.8% 21.57% 15.36% Return on Assets 8% 4.94% 5.55% 1.36% 4.68% Operating cash flow 140,832 122,562,13 (39,981) 23,561,059 Financing cash flow (83,606) (84,071,65) (117,327) (81,028,238) Investing cash flow 16,664 63,177,638 108,794 47,937,862 Ranking of company in accordance with their performance Table 4: Ranking of company in accordance with their performance Union cement Gulf National cement RAK Revenue I II IV III Gross profit I II IV III Profit for the year I II IV III Sales Growth I IV II III Return on Sales II III IV I Return on Assets I III II IV Operating cash flow III II IV I Financing cash flow IV II III I Investing cash flow IV I III II Analysis Return on sales Return on sales is also termed as operating margin. This financial ratio evaluates the efficiency with which a company generate profits from its revenue. It evaluates the performance of the company by calculating what percentage of total earnings is converted into profit[14]. The same is used for comparing the performance of the company with its competitors and industry as well; so that appropriate measures can be taken for improvement. In accordance with the analysis of data of average industry return on sales is 15.36% but the return on sales for Union Cement Company is 16% which is higher in comparison with industry, but still, it is not the highest among four companies. RAK has been provided with the first rank as it is having the highest return on sales 21.57 %[15]. Thus, it can be concluded that even after having highest revenue the company is not able to maximum profit. Efforts should be made to improve the percentage by using more financial leverage, maximising profit margins, distributing idle cash at available investing opportunities, etc. Return on Assets Average Industry rate for return on asset is 4.68%, but the present return of asset rate of Union Cement Company is 8.68%. It is just double of the existing industry ratio, which means that the company is efficiently utilising the available resources[16]. Return on asset ratio is a profitability ratio which evaluates the net income produced from total assets during a period[17]. The same is done by comparing net profit to total average assets. The objective to this ratio is to ascertain the efficiency of the company regarding the management of assets for producing a profit during a period. Union Cement Company is holding having the highest percentage of return on assets in comparison to its competitors as well as the industry average[18]. The same depicts the efficiency of the company in converting its assets into profits. Investors look out in this ratio to ascertain the return in case company invests in its own capital assets[19]. Cash flows: Cash flow statement represents the position of total cash which comes in and goes out of the company. It is different from income statement as it record transaction when they occur rather than when they accrue. It assesses the cash generated by the company during the period and provides information regarding the manner in which it is expended. Operating Cash flows: The section of operating activities represents the cash which is received by the company through sale of its products and services reduced by the cash required for making those goods sale. As per above analysis it can be observed that Union Cement Co. is holding third rank which means that it requires more cash in comparison to its competitors regarding making its goods sold. Thus, it requires improving its performance under this section. Cash flow from Investing Activities: This section of cash flow reflects the amount that is expended on capital expenditure such as purchasing new equipment or any other investment. In case the company does not utilize its available funds in appropriate manner than large amount of cash inflow is available and the same is not sustainable. It can be observed from analysis it can be concluded that the company is holding lowest ratio. By considering performance analysis of company with competitors and industry it can be noticed that Union Cement Company is performing better but they are required to work on the strategies of cash management in order to attain better liquidity position. Conclusion In accordance with the current company financial analysis, it can be concluded that the company is performing well and has outshone an increasing trend over the course of the year. The industry has been further seen to keep pace with the competitors and attain good market standing across the entire Middle East. The financial performance has indeed assisted the company in providing maximum benefit to their shareholders. The ratios ascertained to determine the revenues and profitability status of company showcase a consistent and uprising growth of the company. The quality assurance is also for company prime importance. Furthermore, Union Cement Company has focused on delivering the product and services, which is best in class to meet the client expectations. It has certified by ISO 9000 and API Q1, which showcase its expertise in meeting the quality standards. Lastly, the company being listed on Abu Dhabi stock exchange has made all attempts to outperform its competitors by adopted the latest technologies and serving all class of products. It has a credibility, which makes it a prospective venture for investors to invest in the company. 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