Article Writing Homework Help

Need an research paper on financial health of hkm. Needs to be 4 pages. Please no plagiarism. We see that HKM is doing a profitable business and the profits can sustain growth and expansion. The balance sheet allows a comparison of the assets the company owns and the liabilities. HKM has total assets amounting to 14278. Comparing this with the liabilities it reveals that HKM is not overburdened in any way by debts. Some ratios can help here. Liquidity is defined as a business’ ability to meet its financial obligations2. It shows whether it is able to pay its short term bills (liquidity) and also projects whether its going to be able to service its long term debts when they become due (solvency). Two of the applicable ratios to calculate for HKM are:

Going by the above analysis, HKM is doing rather well for a two-year old company. The company has recorded an impressive net profit, it is very liquid and the asset turnover ratio confirms that the company is very efficiently utilizing its assets. For more on ratio analysis see Lynch foulks (2001).

The next tool of determining the condition of a business is the break-even analysis. According to some authors it is the volume of unit sales that must be made to at least recover the cost of sales3. For HKM Break-even is calculated as below

Break-even analysis helps the management of a business to know the volume of sales that is needed to start making a profit4.