Financial Management Principles Essay Example | Topics and Well Written Essays - 1000 words

Financial Management Principles - Essay Example Net profit margin of the company further reveals that the company is remained with only about 7% of the total sales revenue after meeting cost of sales, operating expenses, interest expense, taxes and dividends etc. The difference between the company’s gross and net profit margin indicate the amount of profit foregone in the course of meeting various expenses. This means that the company has lost about 93% of its revenue in meeting all the various expenses. The return on assets ratio for the company in consideration is 4.88%, which connote that the company has utilized all of its various fixed and current assets to generate a return of 4.88% after meeting all the expenses. Strident Marks Inc.’s return on equity ratio reveals that the company has been able to generate a profit of 8.49% after engaging the total funds invested by its investors and shareholders for the year ended 2005. The current ratio for Strident Marks Inc. reflects that the company has a pretty healthy state of liquidity, i.e., it keeps about $2.57 worth of current assets to pay off $1 worth of current liabilities. The company’s working capital position is highly satisfactory and its current assets are greatly sufficient to meet its current liabilities. However, having such a high current ratio also reveals that some of the company’s fund is lying idle without being invested into the business. The quick ratio for the company shows that after keeping aside inventory from the current assets, the company is left with $2.48 worth of assets per $1 worth of liabilities. It also shows that not much of the company’s cash is tied up into inventory and the company’s short-term position is highly liquid. This ratio reveals that 34.68% of the company’s total assets are financed with borrowed capital, while rest of the assets are financed with equity funds supposedly. Hence the company currently banks on less external debts

Caterpillars Resilience for Strategic Change Management Process Essay

Caterpillars Resilience for Strategic Change Management Process - Essay Example 1) These above mentioned lines are not only mere scholarly jargon or illusion used by some well known academic scholars but the lines are truly reflecting the core essence of change management. In such context, Zajac, Kraatz & Bresser (2000) pointed out that the question is not about whether an organization is able to change or not rather the focus should be whether the mentioned organization is able to successfully implement the change management mechanism in competitive environment or not. Palaniswamy and Sushil (2003) argued that going for change for organizations is always directed by external factors because no organizations would want to change the existing system equilibrium without any bankable reason. Well, the argument has point because historical analysis of data shows that without the presence of certain reasons or the objective of achieving certain benefits, none of the organizations have invested its financial and non-financial resources to achieve change management (Za jac, Kraatz & Bresser, 2000). ... Caterpillar Inc- Business Dimension Caterpillar Inc or Cat is an American corporation which is global leader in manufacturing, construction and mining equipment, diesel-electric locomotive, industrial gas turbines and diesel and natural gas engines. The company was established in 1925 and at present, headquarter of the company is located in Peoria, Illinois, United States (Caterpillar, 2013a). The engineering giant offers wide range of products ranging from construction and mining equipment (the yellow equipment of the company has become symbolic icon for both industrial and retail consumers), customized industrial gas turbines which can lift heavy loads, natural gas engines which can work in low carbon emission state, remanufacturing services, end to end logistic services and even financial services (Gillett, Fink & Bevington, 2010). As of 2012, Caterpillar Inc has earned revenue of more than US $65 billion from its global business operation while the company has reported asset wort h around US$89 billion (Caterpillar, 2013a). As of 2008, the company has established presence in every continent while total employee base of the company exceeds 0.1 million (Gillett, Fink & Bevington, 2010). Now, the fact is that Caterpillar Inc never targeted retail customers or sell items to end users because from the starting days, the engineering targeted construction and mining companies or the dealers who sell construction equipment to both industrial and retail customers. In such business ideology, Caterpillar Inc has established global dealer distribution network crossing 185 partnerships across countries in Europe, South America, Africa, North