Managing Finance Research Paper Example | Topics and Well Written Essays - 3500 words

Managing Finance - Research Paper ExampleRatio analysis is the pregnant tool for investigating the financial performance of the lodge. It helps in analyzing the financial statements and the accounting ratios assist in designed the companys financial position. The ratios are also essential for evaluating the efficiency of the company in social intercourse to its management and operations. On the basis of the ratio analysis, companies formulate their future plans. By doing the analysis of different ratios, companies lift to know how well they are performing as compared to previous years as well as to its competitors (Khan and Jain, 2007). The profitability ratios signify whether the business assets are being utilized effectively in order to come reasonable revenue. The liquidity ratios assist in determining whether the organization is capable of fulfilling the financial requirements in forgetful term. The efficiency ratios signify the level to which the assets have been capable of creating sales. Financial leverage ratios scrutinize the financial braid of the company. Investment ratios assist the investors to make their critical decisions.A numerical investigation is carried out by work out different ratios such as profitability, liquidity, efficiency, investment, financial, and cash flow ratios as well as on the Z-Score to write out the performance of both the companies for the year 2012 and 2013. The numerical investigation shows that Ooredoo Telecom is considered as the more liquid company while the profitability ratios of Zain Telecom are higher.