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Best Financial Ratios
This week we covered Chapter 14, Financial Statement. Financial Statement is the use of different calculations and formulas to determine the financial health of an organization. Lean Manufacturing and Activity Analysis is about eliminating waste and focusing on the movement of goods and services in respect to customer demand. In regards to financial statements, please pick out four ratios discussed in the chapter that would best analyze the company you chose in Week 1â€™s threaded discussions. Discuss why these are the best calculations for the company you chose and in detail explain how they effectively analyze the financial health of that firm.
Please provide original work. No plagiarizing.
Company I chose in Week 1 Discussion is below:
Managerial accounting also called cost accounting is the process of measuring after identifying, analyzing, interpreting and also communicating information to the supervisors or the managers in pursuit of objectives of a particular Organization/Company. Fiat Chrysler Automobiles N.V. is an Italian-American Multinational entity and ranked as the worldâ€™s number eight largest auto creators (Maryanne M. Mowen, 2015) . The Company is headquartered in the Netherlands with the financial headquarters based in London for purposes of tax filing among others.
At Fiat Chrysler Automobiles N.V, managerial accounting is used in consolidating the stakes with an example of an instance where the Company together with Renault raised the stakes for themselves by ruling out the closure of plants (Maryanne M. Mowen, 2015) . This increases pressure to achieve more than $4 billion, in particular, promised savings for the year from pooling research and procurement investments. Such a plan is a forward move for a merging two entities hence calling for analyzing, interpreting and communicating this information to the stakeholders (Maryanne M. Mowen, 2015) .
Maryanne M. Mowen, D. R. (2015). Managerial Accounting: The Cornerstone of Business Decision-Making at Fiat Chrysler Automobiles N.V. Chicago: Advent Press.