Financial analysis Essay Example | Topics and Well Written Essays - 2000 words

Financial analysis - Essay Example – Financial Statement Analysis 1.1 Strategic Plan overview The Ann Arbor VA focuses on the provision of healthcare services to the veterans of US (Strategic Plan, p.11). The mission statement of Ann Arbor VA is as follows: â€Å"To care for him who shall have borne the battle, and for his widow, and his orphan† (Affairs 2013). It is made clear that the organization’s role within its industry is unique. ... families, a practice that indicates the recognition for the veteran’s contribution in the power of the country as a member of the international community (Strategic Plan, p.5). One of the key challenges that Ann Arbor VA has to face is the ‘continuous change in its operating environment’ (Strategic Plan, p.12). The number of US veterans involved in military operations worldwide is continuously increased (Strategic Plan, p.12). Therefore, the demands for healthcare services from Ann Arbor VA tend also to increase, both as of their volume and as of their complexity (Strategic Plan, p.12). Through the years, the organization has managed to secure its effectiveness by employing a series of carefully designed plans and appropriate budgetary techniques, as explained below. The analysis of the financial ratios related to the organization’s performance also verifies the organization’s success in achieving its goals and objectives; of course, concerns in rela tion to the performance of certain organizational departments have not been avoided. 1.2 Financial Statement Analysis In order to evaluate the financial statements of an organization it is necessary to retrieve data related at least to two economic (concurrent) years of the particular organization, so that a comparison is feasible (Mohana 2011). Such comparison would also help to identify the firm’s weaknesses, in regard to its various operations (Gibson 2011). In addition, it is necessary to have access to different financial statements of the organization under examination; focusing only on Balance Sheet or other financial statement could lead to invalid assumptions regarding the organization’s actual financial performance (Bragg 2012). It should be noted that the financial analysis for Ann Arbor VA is based