Explain the concept of sustainable growth

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Explain the concept of sustainable growth. Who uses sustainable growth as a tool for financial analysis? Discuss the pro's and con's of this practice. Include in your discussion your thoughts on the variability of economies and how economic conditions may impact the use sustainable growth rates for financial analysis.

Give your on thoughts of this discussion

Financial analysis is defined as the process of evaluating and assessing businesses, budgets, projects, ad other finance related entities to decide if they perform well or whether it is profitable to invest in (Kenton, 2019).

The goals of financial analysis can be summarized as follows: i) analyzing financial strengths and weaknesses of a company, ii) providing information on liquidity of the company, how much cash it is holding, and how much debt it has, iii) assessing the types of assets and liabilities the company has, iv) understanding the current position and creditworthiness of the company, v) determining the operational efficiency and effectiveness of the company (Meaning, Significance and Objectives of Financial Analysis, 2019).

In this forum, I support the first position which states that financial analysis leads to better decision making for several reasons. First is that financial analysis helps top management by providing a summary of snapshot of the company. With financial analysis, top management can assess whether the resources are used efficiently, and the company runs operations such as marketing, sales, and inventory efficiently; they can investigate the future options of the company if the firm's financial well-being is sound, and they decide whether to promote and appraise an employee (Meaning, Significance and Objectives of Financial Analysis, 2019). Furthermore, it helps investors and lenders as well to decide on whether to invest in the company to increase their pay, purchase its stocks, and give credit to the business for other purposes such as expansion. Labor unions get help from financial analysis to assess whether a company is able to pull of a raise in wages (Meaning, Significance and Objectives of Financial Analysis, 2019).

For the second position, the reasons why I don't support it are two-fold. First, if time is not available within the company itself, the company may outsource its resources to get the job done. Second, if the data giving information on the products and services of the company are not available, company may conduct a quick market research of similar products for the time being until the necessary data are collected. The company may benefit from implementing several database storage, management, and analysis tools. In my opinion, a company should always look for opportunities to increase its business area, profitability, customer service, and product and service quality. These can only happen by having a proper financial analysis documented.

1. Describe the roles and purposes of data warehouses and data marts in an organization.

2. Identify the effects poor information might have on a data visualization project.

3. How does data visualization use database technologies?

4. How could a business use data visualization to identify new trends?

5. What is the correlation between data mining and data visualization?

6. Is data visualization a form of business intelligence? Why or why not?

7. What security issues are associated with data visualization?

8. What might happen to a data visualization project if it failed to cleanse or scrub its data?

Reference no: EM132945786

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