End of Course Assignment Example | Topics and Well Written Essays - 2500 words

End of Course - Assignment ExampleThird is the aspect of the balanced scorecard that would champion the beau monde improve its operations. Last are the benefits and drawbacks of zero-based approach to budgeting for the business.This section contains the analysis of the Brown Bear Leisures financial statement, using relevant ratios, for the two-year period (2014 and 2015). The ratios are as follows profit qualification ratios, liquidity ratios, and efficiency ratios.Net profit margin- this ratio shows how well a company manages its operating expenses such as the administrative cost and interests on borrowed funds. The higher the ratio, the lower the operating expenses of the enterprise. Concerning Brown Bear Leisure Company, the net profit margin for the year 2014 and 2015 have been pertinacious as 7.07% and -0.53% respectively. The ratio recitation for the fiscal year 2014 means that only 7.07% of the companys revenue were net profit, whereas, remaining 92.93% were consumed by th e operating expenses. However, in the year 2015, the ratio is negative reflecting the loss made by the company during that period. Net profit margin decreased between the two periods due to a sharp decline in the profit from positive to negative (Loss). Based on the analysis, the companys operating expenses are excessively high, which indicates the ineffectiveness of the companys cost management methods. Therefore, it is justified to mention that the companys value creation ability is dwarfed by the high level of operating costs (Baker & Powell 2005, pp. 3-10).Gross profit margin- the ratio indicates a companys financial health after meeting the cost of sales. It also shows the companys ability to pay for future operating costs. Concerning Brown Bear Leisure Company, the gross profit margin for the year 2014 and 2015 have been determined as 41.24% and 34.46 % respectively. The ratio interpretation for the fiscal year 2014 means that 41.24% of the companys revenue were gross