Bus 4403 Unit 3

Words: 523
Pages: 3

Decision Making Analysis

BUS 4403 UNIT 3 Essay

Instructor: Diane Diaz - "The '

Part 1

Company Name

Sales

Operating Income

Average Assets

Alpha Co.

3,900,000

270,000

3,800,000

Beta, LLC. -.

6,500,000

1,225,000

10,500,000

Delta, Inc. - a.

2,990,000

475,000

7,890,000

Alpha Co.

Beta, LLC. -.

Delta, Inc. - a.

Margin ratio

0.0692

0.1885

0.1589

Rank

3

1

2

Turnover ratio

1.0263

0.6190

0.3790

Rank

1

2

3

ROI - Return on Investment ratio.

7.11%

11.67%

6.02%

Rank

2

1

3

Beta, LLC is the best overall choice based on these results.

Part 2

A comprehensive analysis of business results using multiple assessment models is essential for a business leader with a strategic outlook for several key reasons. In this essay I will explain these key reasons: balanced decision-making, risk management, strategic planning, performance evaluation, as well as investor and stakeholder confidence.

Balanced Decision-Making
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For instance, the Margin Ratio assesses profitability relative to sales, revealing how effectively a company is managing its costs in relation to its revenue, as suggested by Gavin (2019). The Turnover Ratio measures how efficiently a company utilizes its assets to generate sales, while the Return on Investment (ROI) gives an indication of how effectively the company is using its assets to generate profits. By evaluating all these aspects, a leader can make more balanced and informed decisions, ensuring that strengths in one area are not overshadowed by weaknesses in