Financial Analysis of Durango Manufacturing Company Research Paper

Financial Analysis of Durango Manufacturing Company - Research Paper Example Durango Manufacturing Company is a firm that deals in manufacturing of a variety of products and the supply of industrial products. The firm deals in aircraft manufacturing, apparel manufacturing, automotive manufacturing, chemical and allied products, glass manufacturing, home and garden supplies, industrial importers and exporters, paper and pulp, railroad manufacturing, and other forms of manufacturing. The organization has in the past received Best Business Bureau (BBA) accreditation, which recognized their relentless commitment to making strenuous efforts of satisfying consumer complaints. The award considers the period of time the business has been in operation, the amount of information available concerning the business, and most importantly, there should be no consumer complaint filed with the Better Business Bureau (Csaszar, 2012). Durango manufacturing company’s Chief Executive Officer (CEO) does not have sufficient expertise in financial management and creating valu e for the firm’s various stakeholder groups. ... Corporate finance is crucial as it defines how organizations fund their activities and achieve their goals and objectives. Organizations are always faced with a dilemma between re-investing their excess revenues or using it to pay shareholder dividends. An ample financial literature is crucial as it enables chief executive officers to rationally appropriate the finances of an organization while maintaining high quality shareholder relations. The Chief Executive Officer (CEO) of Durango manufacturing limited should seek financial training to enhance his financial literature. The firm is a large multinational firm with extensive financial implications. Also, the magnitude of its daily operations represents a relatively large financial risk that requires high-tech financial management expertise. Because of the complexity of the organization, the managing director should seek training in financial management or management accounting. Management accounting comprises the provision of finan cial information, as well as the financial advisor to a business (Brigham & Ehrhardt, 2013). Financial management starts with the management of financial information (Bhat, 2008). Financial information refers to data like credit card numbers, account balances, credit ratings, and other monetary details concerning an organization, which are used in implementing various activities like credit assessment, loan transactions and sundry. The chief executive officer should know how to process financial information to safeguard Durango Manufacturing Company profile from bad publicity associated with financial misappropriations.