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Strategic Control System

The document discusses key aspects of a strategic control system including financial analysis and ratio analysis. It provides details on balance sheets, income statements, and the differences between the two. It also defines various types of financial ratios like liquidity, efficiency, leverage, and profitability and provides examples of specific ratios used to measure each type.

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Jesriel Alsonado
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79 views19 pages

Strategic Control System

The document discusses key aspects of a strategic control system including financial analysis and ratio analysis. It provides details on balance sheets, income statements, and the differences between the two. It also defines various types of financial ratios like liquidity, efficiency, leverage, and profitability and provides examples of specific ratios used to measure each type.

Uploaded by

Jesriel Alsonado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Controlling

STRATEGIC CONTROL SYSTEM


STRATEGIC CONTROL SYSTEM

 1. FINANCIAL  2. FINANCIAL
ANALYSIS RATIO
ANALYSIS
FINANCIAL ANALYSIS

 Financial analysis involves using


financial data to assess a company's
performance and make
recommendations about how it can
improve going forward.
FINANCIAL ANALYSIS

 Balance Sheet Statement


 Income Statement
Balance Sheet Statement

 The balance sheet is a report that


summarizes all of an entity's assets,
liabilities, and equity as of a given
point in time.
 Typical line items included in the
balance sheet (by general category)
Balance Sheet Statement
Income Statement

 The Income Statement is one of a


company's core financial statements
that shows their profit and loss.
 Shows the company’s revenues and
expenses during a particular period.
Income Statement
Balance Sheet vs Income
Statement
 The difference between the balance
sheet and income statement. The
balance sheet reports assets,
liabilities, and equity, while the income
statement reports revenues and
expenses that net to a profit or loss.
FINANCIAL RATIO ANALYSIS

 Financial ratios are mathematical


comparisons of financial statement
accounts or categories. These
relationships between the financial
statement accounts help investors,
creditors, and internal company
management understand how well a
FINANCIAL RATIO ANALYSIS

 Liquidity ratio
 Efficiency ratio
 Financial Leverage ratio
 Profitability ratio
Liquidity Ratio

 Liquidity ratios are measurements


used to examine the ability of an
organization to pay off its short-term
obligations.
Liquidity Ratio

 Current Ratio

 Acid-test Ratio
Efficiency Ratio

 The efficiency ratio is typically used to


analyze how well a company uses its
assets and liabilities internally.
Efficiency Ratio

 Inventory turnover ratio

 Fixed asset turnover


Financial Leverage ratio

 Financial leverage ratios, sometimes


called equity or debt ratios, measure
the value of equity in a company by
analyzing its overall debt picture
 These ratios either compare debt or
equity to assets as well as shares
Financial Leverage ratio

 Debt to total asset ratio

 Times interest earned ratio=


 (profit before tax+interest expense) /
interest expense
Profitability ratio

 used to assess a business's ability to


generate earnings relative to its
revenue, operating costs, balance
sheet assets, and shareholders'
equity over time, using data from a
specific point in time.
Profitability ratio

 Profit margin = net profit/net sales


 Return on assets = net income/profit
 Return on equity = net income/equity

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