DMACC Ratio Analysis, Limitat

Deja’Lynn Hicks

RE: Discussion : Ratio Analysis

Hi David,

Great job on your post this week. This week was a challenging topic for me. I was wondering if this topic came a bit easier for you?

Daphane Terry

RE: Discussion : Ratio Analysis

David,

As you stated the non-GAAP is a great predictor of financial future and cash flow. I also think the non-GAAP gives lenders a good suggestion as to the potential risk of investing in the company’s current operations. What are your thoughts?

Miklos Nagy

RE: Discussion : Ratio Analysis

David,

Nice post! As you mentioned in the Campbell’s soup scenario they were versatile in doing both non GAAP and GAAP results. Do you feel this is an effective method or a waste of company time? Thank you for your post!

Respectfully,

Mick

Suemede Lawrence

RE: Discussion : Ratio Analysis

Great post David! I like that you pointed out that because many of the facts and conditions are unique to each organization there is difficulty with making comparisons. Diffley & Greenstein (2016) recommends standardization of non-GAAP measures of reporting. In light of the challenges posed by uniqueness would it be ever feasible for non-GAAP measures of reporting to be standardized?

reference:

Diffley, E. A, & Greenstein, A. (2016). Presenting non-GAAP financial measures in the face of increased scrutiny. Insights, 30(6), 3–9.

Flonneka Purefoy

Limitations of Inferences

Reviewing the data for Anthem within a year and during a pandemic, the stock prices opened at $307.70 on 11/23/2020 (Yahoo Finance, 2021). On 11/22/2021 the stock prices opened at $419.48(Yahoo Finance, 2021). The limitations from a year sample are that the stock prices during the pandemic rose and continued to rise. The expectation for the rest of the year from this stock is that it will be trending downward (Yahoo Finance, 2021).

For the average stock price of Anthem within a 5yr time had an increase with a dramatic drop during the start of the pandemic in March 2020. Calculating the range of the stock prices for the large sample will help find the level of confidence (Lind, 2021).

Anthem, Inc. (ANTM). Yahoo Finance https://finance.yahoo.com/news/anthem-antm-down-1-…

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2021). Basic statistics in business and economics (10th ed.). McGraw-Hill.

Shawn Barker

Discussion

  • Discuss any experience you have involving a procurement process.

For experiences that were deemed a success, discuss the main factors that contributed to the success. Consider factors such as proper planning, proper understanding of the organization requirements and needs, and proper use of procurement tools and strategies.

In my previous occupation, I was part of my Companies’ Project Team. My company specializes in the development of Specialty Chemicals for various Industries. Although we did not have a formal Project Management Program implemented, we still went through many steps associated with the program. As the Construction and Maintenance Superintendent, I was responsible for our Process Units’ Procurement, setup, installation, testing, and operational requirements. On occasion, I would have to travel to different locations to procure process equipment needed for a Project. The strategy I utilized was like the Project Procurement Strategy. The Project Procurement Strategy is the relationship of specific procurement actions to the Project’s operating environment (Kerzner, 2017). Before Procurement, I would discuss with my Engineers the requirements needed for this process, and what types of equipment were required, and start the direct Procurement process. Direct Procurement refers to obtaining anything that’s necessary to produce an end-product (“What are the types of procurement and procurement methods?”, 2021).

The next step would involve generating an equipment list with individualized specifications for each piece of equipment or part involved. If we did not have the available materials or equipment on hand, I would work with the Purchasing Department to seek vendors with our specific needs. On occasion, I would have to travel to the vendor and determine the material condition of the equipment and whether it could meet our needs. Once the items were located, I would work as a liaison between my Purchasing Department and our selected vendors to generate a Requisition Request to acquire the needed equipment or materials. Many of our purchases were fixed cost; however, we would occasionally work with clients who offered a cost-reimbursable solution to our needs. Once I have secured the necessary equipment and materials, I can start the construction process. For many of the purchases, this process would deliver successful results; however, it failed to do so on occasion.

  • For experiences that were less successful, indicate what could have been done differently to improve the outcome.

Discuss the challenges that were encountered during the procurement process.

Occasionally, my company would not locate the correct piece of equipment that was needed for our projects. Or, in certain instances, we would have to procure a piece of equipment that was not specifically designed for the processes we have set for it. Also, there were times when we procured equipment that was considered “AS IS” or not tested or inspected. On occasions such as this, we would insist on an equipment inspection before Procurement. However, if our schedule did not allow for an assessment before purchase, we would gamble with the possibility of a failed piece of equipment. This did happen on occasion, and my company was stuck with that decision. Although my Maintenance Department was set up to handle the necessary work or repairs to get the equipment into an operational status sometimes, this was not always the case. Occasionally, we would encounter a piece of equipment that would not be economically cost-effective to repair. If the equipment was sent to our facility and my team and I determined it was beyond our capabilities, we would have to work with the Purchasing Department to try and salvage our initial investment. This was a failure within our procurement process. Although we did not run into this scenario, it often happened, and the results were costly.

Resources

Kerzner, H. R. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: Wiley. Section 19.1, “Procurement,” pages 662–664.

What are the types of procurement and procurement methods? (July 3, 2021). Retrieved from https://www.constructionplacements.com/types-of-pr…

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