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 …show more content…
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