Evaluating the financial health of a business is not just about numbers. There are other variables to consider, such as measuring progress and performance, forecasting economic trends, and keeping current with global events. Other factors might include the valuation of financial instruments, the quality of the data collected, popular views, differentiation strategies, governmental regulations, laws, natural disasters, the integrity of the supply chain, vendor operations, and so on. In this Discussion, you will revisit the organization from the Week 4 Discussion and explore the qualitative factors that might affect its financial health.
To prepare for this Discussion:
- Refer to the organization you selected for the Week 4 Discussion.(Walmart)(attached) Using the list of questions from the American Association of Individual Investors on p. 137 of Brigham and Houston (2022), select at least one of the questions to answer for that organization.
- Reminder: Be sure to keep an evidence-based perspective throughout your Discussion.
Post an analysis of qualitative factors that could impact the financial performance of an organization. In your analysis, be sure to address the following:(250 words or more)
- Based on the example of the organization that you selected for the Week 4 Discussion, answer one or more of the questions on p. 137 of the Brigham and Houston (2022) text related to qualitative factors of financial performance. Be sure to include relevant details and examples, where applicable, to support your answers.
- For each qualitative factor you addressed, identify the ratio(s) that could be impacted and explain why.
Refer to the Week 5 Discussion Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.
Reference:
Brigham E. F., & Houston, J. F. (2022). Analysis of financial statements. In Fundamentals of financial management (16th ed., pp. 128–150). Cengage Learning.