Accounting Essay Example | Topics and Well Written Essays - 500 words - 3

Accounting - Essay ExampleIt also caters to a wide variety of financial services like short and long term financing, credit cards, working capital, etc. UPS was founded in 1907 and has its line of business in Atlanta, Georgia (United Parcel Services, Inc. (UPS) n.d.).Companies, bounteous or small need to analyze how their business is faring. With big organizations like FedEx Express and UPS, whose trading operations are from continent to continent, the need to inform its creditors and subscriber lineholders how their respective financial operations are faring is essential to attract more solid investments in order to maintain overhead costs, maturation yearly profits and gain the public trust for a better flow of business.To identify and shed a play alongs financial condition, financial ratio analysis is often used to evaluate the financial stability of a certain entity. Financial ration analysis falls into the following categories (Credit look into Foundation, 1999)By tak ing a look at the above sample computations for FedEx Express and UPS, the ratios indicate that some(prenominal) companies are adequately liquid and could cover up for any financial loss without losing their creditors investments. Using financial ratios to directly compare the financial standing of companies using a different accounting method or flow different accounting practices is not feasible. However, there is no world wide standard for figure the dataBut if investment is to be made, a good investor would not only look at the financial statements and calculate ratios. Other factors must be taken into consideration like how long has the company been around, the stock value of the company and the coverage of its operations. Given the history of FedEx and UPS it could be seen that United Parcels Services, Inc. has been around long-run being founded in 1907 while FedEx was found in 1971. However, investors also look at the fluctuation of stock prices of the company shares. The stock