Financial Ratio and Capital Planning

Question: Describe about the financial ratio and capital planning. Answer: Financial Ratio The next learning process I have gone through is the conceptual idea about the financial ratio. It is seen that each of the organisation needs to divide the capital resources on diversified segments, such as Profitability, liquidity, turnover. At the initial stage I needed to learn the resource allocation on this segment. However, the primary difficulty I have faced in structuring such resource allocation is the complicated method. It was quite confusing for me to understand the proper allocation of the resources in different aspects. Sometimes, I could not understand how to configure the exact amount on each of these segments. However, as per my experts advice, I recognised that if I could practice the calculation process of the financial ratios, it would be easier for me to learn the methods. In fact, calculating the financial data by applying the proper formula was quite effective in strengthening my calculative power for the future ration analysis process. Hence, it is quite prom ising and challenging for me to present my skills related to the organisational accountability management. Overcoming the barriers is even strengthening my confidence level as well. Capital Planning The final learning process is related to the capital planning. During my entire course period, I have gone through many of the learning process. However, this particular field has been ensuring the most challenging and interesting aspect in my entire course of the learning process. The capital planning is usually conceptualised as the resource allocation of any particular business plan or organisational management. Hence, it was quite important to identify the exact area where the resources are needed to be allocated. Firstly, in case of planning the capital investment for the promotional activity, it was important for me to understand the estimated budget that is linked with each of the segment. The most significant challenges I have faced during this course is the lack of proper planning. The company has estimated for a particular amount of capital resources. It was my responsibilities to allocate these resources in each of the relevant segments. However, one of the most recognised weakness in structuring the plan for making any relevant decision. Hence, during the capital planning, I need to understand the exact market scenario. I believe it is the most significant way to get over to such crucial circumstances. The guidance derived from my senior executives is concerning about the extensive market research. It is quite helpful to recognise the current market scenario and accordingly planning the resources for the estimated profitability. However, it is important to note that I need to keep more concentration on the analytical studies, especially in terms of financial accounting process. Other than these methods, the supports received from the seniors and my guides are much commendable for improving my confidence. Reference List: Brigham, E. and Ehrhardt, M., 2013.Financial management: Theory practice. Cengage Learning Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012.Strategic management of health care organizations. John Wiley Sons Vicary, S., Young, A. and Hicks, S., 2016. A reflective journal as learning process and contribution to quality and validity in interpretative phenomenological analysis.Qualitative Social Work,. Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015.Financial Managerial Accounting. John Wiley Sons.