University of Wolverhampton
ERC Institute Singapore
SUBJECT: Accounting and Financial Management
LECTURER: Mark Price
BATCH: 7AC002
Name of Student
University Student Number
Signature
PHAM THI THUY HANG
1331495
PHAMTHITHUYHANG
Email address of student:
Submitted on Due Date: 01/07/2014
Word limit observed: 6000words
Executive Summary:
It should be noted that the performance analysis via business ratios or indicators can be conducted with an aim to evaluate the performance of a certain company. Amidst the context of fierce business competition, companies must find out the ways to survive and develop. One of the effective ways towards the sustainable development is to measure the historical performances of the companies via the calculation of business indicators or ratios. On one hand, the performance evaluation enables the companies to have an insight into its business operations, performance in a certain period of time and give the forecast about the future business performance. The information on business performance is used and capitalized by many different parties, so-called the companies’ stakeholders who are usually considered the companies’ shareholders, creditors, employees, tax agent, government, etc. All the related parties may use the information on the business performance evaluation with an aim to have an insight into the business operations of the companies and support the decision making process of the companies’ stakeholders. Indeed, the business operation evaluation brings about the clear picture on the companies’ financial health or position, the financial capacity, profitability and asset management. Therefore, the information on the company’s business performance will enable the investors or creditors to make the right decisions. It should be noticed that the information on the business performance will enable the stakeholders to identify the opportunities to make investments in the companies and identify...