Udoka corporation case study Essay Example | Topics and Well Written Essays - 3000 words

Udoka corporation case study - Essay ExampleOperational process is the core commonwealth that has to be very efficient to retain the sustainability of a ships company. Therefore, in order to maintain a higher(prenominal) level of running(a) process, veracious evaluation and controlling activities are inevitable. The evaluation of operational analysis stern be done using the financial evaluation techniques specifically the ratio analysis. Besides, the management decisions and future strategies should in like manner be analysed for determining the future growth of company in terms of operational performance. Hence, in this find out necessary information is essential like the financial data and management planning for operational process. However, exactly computing the operational ratios will not offer very clear picture of a companys performance. The results of evaluation must be compared with the peer rivals and with industrial average performance. There are in like manner ot her financial techniques apart from the ratio analysis like horizontal analysis which is helpful in comparing company performance in comparison to performances in previous years. As this report aims to valuate operational performances of Udoka Corporation, outcome from the horizontal analysis can be used to assess improvements or abasement in Udokas performance. The primary aim for this analysis to is identify the underlying issues in Udokas operational performances and accordingly a set of plausible and specific recommendation will be offered. Brief comment of Udoka Corporation Udoka Corporation is engaged in mobile manufacturing business and technology and innovation is the base of this company. It is direct in a highly war-ridden business environment where every aspect of performance is all-important(a) for sustaining in such severe competitive market. It is expected that in coming years the industry competitive will be fiercer and hence, it is necessary for Udoka to take n ecessary action to acquire an upper hand note in the market. The management of Udoka is considering for investing for ensuring Udokas future, and in this process, it is very necessary to make proper decisions establish on prevailing condition of finance and based on industry forecast. Analysis of Operational execution of instrument Operational process includes the management property receivable, cash payable, inventory turnover etc. using these parameters, cash conversion cycle and operational cycle can be determined. To make better decisions for future growth, the proper evaluation of current status is indispensible which also offer indication of prevailing operational performance (Walton and Aerts, 2006, p.261). Using the financial data of Udoka Corporation, operational performance of the company has been determined. Table 1 represents horizontal analysis of Udokas financial statement and the table 2 depict the analysis of its operational performance. Table 1 plane Analysis o f Udokas Financial Statements Financial Analysis 2011 2,010 2,009 Actual Actual chance variable % Actual Variance % ?m ?m ?m ?m ?m Total sales 50,710 45,639 5,071 11% 41,075 9,635 23% address of sales 33,337 26,471 6,866 26% 24,645 8,692 35% Ratio of CS/Sales 66% 58% 8% 13% 60% 6% 10% Gross profit 17,373 19,168 -1,795 -9% 16,430 943 6% Gross margin 34% 42% -8% -19% 40% -6% -15% Operating expenses