Finance 320

FINANCIAL REPORT

Name

Institution

Abstract

We shall look at how the business has to be evaluated before starting any investment. For any public traded firm and show the reason behind the choice of the company. All the financial aspects will be considered to have any investor to have clear knowledge of what he or she is investing on this include all the relevant books being scrutinized (Rosenbaum & Pearl, 2013

Financial Report

As finance manager and having the information about the energy firm and industry. This is one of the first growing industries that has led to the employment of several people across all The states of America. Due to our financial capacity and ability to manage the risk that is prone in the industry we placed an order for the ministry of energy to give Vox Company an opportunity to deal in the trade of power. (Rosenbaum & Pearl, 2013).  This was brought about by they argue to produce and sell sources of energy that are economically and environmentally friendly. The firm fell suitable to launch into new grounds to give the citizen economic ease the vox firm intend to invest in the energy sector to provide an additional source of energy to the one given at the current markets.

The permission will give the firm the right of selling the energy to the customers directly without involving the middlemen. The practice will ensure that the customers are not exploited by high pricing commonly done by several. The move to this market will be a significant rise towards the achievement of the goals of the business as stipulated by the management team. These are some of the reason that has led to the cultivation into the energy sector.

America today do not just need an investment, but it must be one that cares for the environment, and that is why it would be easy to sail through in the market. The energy sector is very competitive and to succeed one must be conscious of the surrounding (Rosenbaum & Pearl, 2013). 

Financial ratios

Some of the rates that have determined the desire to work with the firm super extra energy producers are earning ratio, current ratio, earnings/ share quick and price-earnings ratio. Super company is one of the largest firms to exist in this sector, and their financial capacities are not in doubt (Rosenbaum & Pearl, 2013). 

Price-earnings ratio.

The rate is used by companies to measure how its price is when compared to the prices in the market. It also shows the amount an investor is expected to put in business to earn a dollar. In another word, it indicates how much an investor can demand a dollar

Current ratio

This ratio is a financial comparison that equates current assets to current liabilities. The current assets are the assets of the business that are readily transferable to cash while current liabilities are the expenses that are incurred by a company over a short period. When the rate is calculated the value can be one to mean that all the current assets are used to finance the current liabilities. On the other side if the ratio is higher than one then it says that the current liabilities are less than current assets all the obligations can be paid with a lot of ease since the firm is financially liquid. When the ratio is less than one, then it indicates the financial strain the company is going through and cannot meet its obligations (Sussman & Kurowski, 2013). 

Liquidity ratio

This is the measure of the ability of a firm to pay its debts with in the required time without incurring other expenses in the process. If evaluated it will show how the firm’s cash is flowing. The ratio is used with other ration all together. These ratios are subject to internal and external use (Schwed, 2006). 

Accounting ratio

Accounting ratio is used to measure how the firm is operating in terms of profit and how efficient it is regarding the reports of its operations. It indicate how one account is related to the other (Schwed, 2006). 

Trend line

The investment in this area needs a person who do not fear taking risk since the business has its risk. It is also very expensive and any investor who has financial capacity can try and invest in it. The higher the risk, the higher the returns. Those who dare to try this investment have an opportunity to have a good return (Schwed, 2006). 

References

Rosenbaum, J., & Pearl, J. (2013). Investment Banking Workbook. New York, NY: John Wiley & Sons.

Schwed, F. (2006). Where are the customers' yachts, or, A good hard look at Wall Street? Hoboken, N.J.: John Wiley.

Sussman, D., & Kurowski, L. (2013). Investment project design. Hoboken, N.J.: Wiley.

Travers, F. (2013). Investment manager analysis. Hoboken, N.J.: Wiley.