149k views
4 votes
What could a financial manager look at to determine whether his company is successful or in distress?

User Stan James
by
5.9k points

1 Answer

5 votes

Answer:

There are plenty of things that the manager could see, some of them and the most important ones are explained below.

Step-by-step explanation:

To begin with, there is the debt to equity ratio that the manager can see to know how well they are doing with the debts of the company and that would tell them if all the income that the company is having are going directly to the payment of the debts or if they are getting profits indeed. Moreover, the manager would have to see also the cost structure and the sales forecast in order to understand if there is an efficient productivity that will generate the products in time and form to achieve the sales expected so that the all the fixed costs are covered by the income acquired from those sales. Another important point to look up to is the cash flow statement, where the manager would see all the money that is coming in and out of the organization.

User Noslone
by
5.9k points