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Empire Company Financial Analysis

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A public traded company is defined as a company that has permission to sell stock in its own company to the public. The rational of a company going public is to increase the growth of the company. Before a company decides to go public, considerations of size and the industry it serves must be considers. Although, deciding to go public can be a great move the company much thought must go into the decision. When you have medium-sized company working capital is essential. When the company’s funds operate on a fixed interest basis the company is vulnerable to failure, so the only solution may be taking the company public (Chandra, 2011). Other, benefits of a company going public is the increase of capital for the sale of …show more content…

Empire Company Ltd have four main type of ratios that will show the financial health status of an organization are: Financial Leverage (Debt), Liquidity, Asset and Profitability efficiency. The ratio of financial leverage measures the extent to which an organization relies on the debt financing in its capital structure. Financial leverage ratio also focuses on the long-term obligations and the organization ability to repay debt. The Financial Leverage ratio equation is as follows: Total Liabilities / Total Assets = Debt Ratio $20,000 / $40,000 = 0.5 The ratio of Liquidity will show whether an organization has enough cash on hand to pay any short-term liabilities or debt that may arise. The liquidity of an organization is defined by the current assets and liability of the organization’s balance sheet. The Asset efficiency ratio shows how a company can effectively use various assets to generate more revenue. However, there are two Liquidity ratios. The equations for Current and Quick ratios are as follows: (1) Current Assets / Current Liabilities = Current …show more content…

Few are willing to report such fraud but, many of these employees are not willing to forward to speak of known fraud because they are frightened of losing the jobs or how they will be reprimanded. There are many sections within the Sarbanes-Oxley Act 2002 that address how to provide a safe environment for whistleblowers. In Section 806 there are actions to be taken if civil damages for the whistleblower in a public company. For the whistleblower, that may suffer any retaliation from the organization in providing information in an investigation or is participating as a witness in any federal securities law violation (Prentice & Bredeson,

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Firms with excessive liabilities may run into severe trouble, even if they are otherwise successful entities. In finance, the term leverage refers to the ration between the firm 's liabilities and equity and is calculated by dividing total liability by shareholder equity. Note that some analysts prefer to use only long-term liabilities, which are payment obligations coming due in one year or more, when calculating leverage. The more common leverage formula, however, incorporates all liabilities. If stockholder equity is less than total liability, the firm 's leverage ratio will be greater than 1.

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Comprehensive Analysis Liquidity Liquidity is defined as the ability to convert assets quickly into to cash (Liquidity, 2014). A good standing liquidity is good for companies as well as investors and lenders to the company. For the company it’s a great indication as to whether it will meet short term maturing obligations or not. For creditors and investors, a good standing liquidity portrays the ability of how quick a company can pay off debts. Current Ratio (Current assets ÷ Current liabilities)

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Common liquidity ratios are the current ratio and the quick ratio. The current ratio is calculated by dividing current assets by current liabilities. This can help a business help pay off debt. "As a quick ratio is a liquidity ratio that measures the ability of a company to pay its current liabilities when they come due with only quick assets. Quick assets are current assets that can be converted to cash within 90 days or in the short-term.

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Over the past ten years, total number of outstanding shares has dropped 40%. The company is very committed to investing money back into own stock thus increasing share price and

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Week 6 written assignment AY2023- T5 – BUS 5111 The University of the People BUS 5111-Financial Management Instructor: Dinesh Tandon Date: 26th July 2023 Introduction As the nature of business growth, a private company needs solutions or methods to expand its business or deal with the company's debt by issuing debt or issuing stock to the public.

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The debt to ratio is a ratio that compares a firms total liabilities and shareholders’ equity. It shows the proportion of the amount of money invested by the business owners as well as external entities. Debt to Equity Ratio = Total Liabilities/Shareholders’ Equity = $80,994/$931,490

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People who are considering reporting their employer for securities violations under the SEC Whistleblower Program know reporting the possible violations is the right thing to do, yet they still hesitate. It 's difficult to turn in co-workers or supervisors who may also be friends. It 's even more difficult to utilize a company 's own internal reporting system, however, the SEC suggests that people do, unless they have a very good reason not to, such as a fear of retaliation. Employees who utilize their company 's internal reporting system have 120 days to report the information to the SEC: otherwise, it 's not original information. Employees also hesitate to inform the SEC of possible violations because they initially condoned the act and they fear the SEC will say that they participated in the fraud.

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When whistleblowers report a potential problem, some people may see that their actions are not reporting for the greater good of society, but rather a release of secrets. If an employee does something against company policy that they thought was right and gets fired, this could cause the SEC to get involved because they can prove that the displaced employee is a whistleblower. Employers do not want someone who is going to freely release information and call themselves a whistleblower. To discuss this problem, Catherine Fotl (2013, n.d), in her online article: Employers beware: Will the SEC be A Safety Net for Terminated Whistleblowers? That change will come for the SEC enforcement abilities and states that companies need to be vigilant in their actions against security violations.

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It does this by comparing the company's total debt (including short term and long term obligations) and dividing it by the amount of owner's equity .For now; you only need to know that the number can be found at the bottom of the balance sheet. Actually calculate the debt to equity ratio in segment two when we look at real balance sheets.) Debt Equity Ratio YEAR Total Liabilities Shareholders’ Equity Debt equity Ratio 2013-14 6,569,079 5,743,769 1.14 2012-13 5,405,029

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Due to the fact that an acceptable Quick Ratio is around 1:1, Gemini is in good shape with their Liquidity ratios. This was during a time with a falling U.S. dollar and emerging Korean competition in the market, yet Gemini still was able to meet its short term cash obligations. The objective of any business is to ensure that resources are being used efficiently to produce an acceptable return. For Gemini, we can analyze their Efficiency by inventory days and total asset turnover.

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The two most common liquidity ratios are the current ratio and the quick ratio. Current Assets Current Liabilities Ratio Q1 82,772 86609 0.9557 Q2 93,291 101098 0.9228 Q3 103,277 82840 1.2467 Q4 97,691 136984 0.7132 Current Ratio can be calculated by dividing the current assets by the current liabilities. It is primarily used to determine if a company is able to pay back its current liabilities, such as accounts payable, and other obligations and liabilities, with its current assets, cash accounts receivable, etc.

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Companies rest in more business types may have a more efficiency internal capital market than others. In a diversified company, some businesses generate surplus funds that can be shift to businesses that need the funds. Acquiring an unrelated business can

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Often, employee is in dilemma whether to report the suspicious activities internally in the organization or to external bodies. In most of the cases, internal whistleblowing is better than external whistle blowing as this gives a company to rectify itself and monitor better while external whistleblowing hampers the organization’s reputation and the loyalty of the employer is questioned and the employee’s environment might become unfriendly in the organization. Sherron Watkins in Enron case is an example of internal

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Whistleblowing Conditions Whistleblowing can best be described as a person that exposes any business related activity deemed illegal or unethical. Whistleblowers can bring allegations forward either internally or externally. Internal whistleblowing allegations are generally reported to direct supervisors and managers within an organization while external whistleblowing allegations are brought forward by contacting someone outside of the organization such as law enforcement, news media, and governmental agencies. Whistleblowers take many risks including retaliation from those accused of wrongdoing.

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2.0 LITERATURE REVIEW The review of literature of this study broadly focused on whistleblowing. There have been several attempts to define whistleblowing, but certainly there is no generally accepted definition. According to Near and Miceli (1985), which are often referred by researchers, whistleblowing is a process whereby a current or former member of an organization discloses practices or activities believe to be illegal, immoral or illegitimate, to those who may be able to effect change. The practices or activities can be refer to personal misbehavior such as stealing, waste, mismanagement, safety problems, sexual harassment, unfair discrimination and legal violations (Dasgupta & Kesharwani, 2010).

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