Financial Condition Analysis

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Create a 3-5 page report that analyzes financial ratios for a company, uses the data to tell the financial story of that company, and concludes with a recommendation on whether the company would be a viable partner based on its financial condition.

Introduction
It’s essential for senior management to know the financial condition of an organization in order to make strategic decisions. In this assessment, you will apply the financial management skills learned thus far.

Tell the financial story based on financial statements.
Conduct a financial analysis and identify focus areas for enhancing shareholder value.
Interpret ratio computations that are meaningful and inform business decisions and strategies.
Make three recommendations that maximize shareholder value.
Scenario
Maria Gomez is founder and president of ABC Healthcare Corporation, a company that owns hospitals, ambulatory surgical centers, urgent care centers, and outpatient clinics. She has called on you to review various financial documents and to make recommendations to maximize shareholder value.

Your Role
You are one of Maria’s high-performing financial analyst managers at ABC Healthcare Corporation and she trusts your work and leadership.

Requirements
Here is what your report should provide for Maria:

A summary of the financial strength of the company through your analysis of the price/earnings and price/book ratios.

 

Sample Solution

The CEO should focus on fostering ongoing dialogue. Conversations must be 2-way and scheduled to occur on a regular basis with members of the leadership team to allow them to follow up on feedback from their staff and give them the support they need to perform their roles effectively. Individualized consideration is where the leader provides a supportive environment to help coach followers through the personal challenges (Manns). Consideration should be given for individual differences among the leadership team in order to provide better coaching experiences and delegate responsibilities more effectively. These discussions allow for concerns to be addressed immediately and a timeline for resolution and accountability to be established. Employees feel more supported by their leaders when leaders are concerned with their personal feelings and needs (Nouri, 678).

The CEO needs to set up and follow a plan of action about what specifically needs to be changed or improved in order to create a higher degree of performance. He should also communicate clearly the timeline in which the team is expected to accomplish these changes. The CEO needs to be more specific when assigning tasks in an effort to guide the leadership team toward more specific goals. These changes would lead to a focus on inspiration, which in turn will lead to higher performance. A transformational leader should have a clear vision of the future that is simple, understandable, and energizing (Manns)

The CEO needs to begin acknowledging problems and concerns from the employees within the organization and address them as quickly as possible in order to not let these issues grow before they can solved and increase the trust that the employees have for the leadership team. Having members of the leadership team on each unit make rounds at least weekly to discuss with staff any concerns that they may have about the organization or their current role and then having the leadership team debrief each other monthly on staff and environmental needs. Transformational leadership is based on having a clear vision of the future that is simple, understandable, and energizing (Manns) This process would follow the transformational leadership theory in that it would allow leaders to have a transparent view of the issues that are important to the employees and allow for the opportunity to quickly form a resolution or a plan for follow-up.

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