BUSINESS PLAN

Business Plan on British Health System

Business Plan on British Health System

Introduction

To make rational decisions concerning the objectives of the company, the financial manager should use some analytical tools. The purpose of the company is not only the internal control, but also a better understanding of what capital providers look at the financial condition and performance.

The type of analysis varies according to the specific interests of the creditors of the business involved are primarily interested in the company's liquidity. Their claims or rights are short-term, and the ability of a company to pay is best judged through a comprehensive analysis of its liquidity. Moreover, the rights of bondholders are long term. For that reason, are more interested in the ability of the cash flows of the company to service debt in the long term.

Those who invest in common shares of a company are interested mainly present and expected future profits and stability of the same trend and its covariance with the profits of other companies.

In order to more effectively negotiate with obtaining external funds, management of a company should be interested in all aspects of financial analysis that external providers of capital used to evaluate the company. Management also uses financial analysis, internal control purposes. Is particularly concerned with the profitability of investment in various assets of the company and how efficiently they are managed. In addition to capital providers and the company itself, various government agencies sometimes used financial analysis. In particular, the regulatory agencies review the rate of return a company earns on its assets, and the proportion of funds that are not employed in the business capital.

Use of Ratios

To assess the situation and a company's financial performance, the analyst requires some criteria. These are often used as reasons, or indices, which link together financial data. The analysis and interpretation of several reasons should enable experts and analysts can gain a better understanding of the situation and the company's financial performance than they could obtain through the isolated analysis of financial data.

Trend Analysis

The financial ratio analysis involves two types of comparisons. First, the analyst can compare a present ratio with the reasons for past and future expected for the same company. The current ratio (ratio of current assets or liabilities) by the end of the current year could be compared with the current ratio at the end of last year. When the financial ratios for several years are presented in a spreadsheet, the analyst can study how change happens and whether there has been an improvement or a worsening financial conditions and performance over time. Financial ratios can also be calculated for projection, pro forma statements, and compared with the past and present reasons. In comparisons over time, it is best to compare not only for financial reasons but also in absolute numbers.

Comparison with Some Other Reasons

The second comparison method collates the reasons for a company with similar business or industry averages at the same point in time. Such comparison allows to obtain evidence about the relative financial condition and performance of the company.

Comparisons with industry should be approached with ...