Financial and Budgetary Considerations for DaVita Inc.

Financial Statement - DaVita Inc.
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Financial Statement - DaVita Inc.
Financial and Budgetary Considerations
For the financial and budgetary considerations, I will use DaVita Inc.’s income statements, balance sheets, and cash flow statements. These will help determine the company’s revenue, expenses, and net income. More importantly, it will help reveal if the company is making a profit or loss at any given time period. The balance sheet will be essential in ascertaining the organization’s assets and liabilities (both current and long-term) as well as equity, including retained earnings and share capital. On the other hand, the cash flow statement will be important in determining the cash generated and spent by the company during a particular period of time: it will show how financial resources are moving in and out of the organization (Osadchy et al., 2018). The proposal will help illustrate, in a clearer manner, the business activities and financial health of DaVita Inc.: illuminating the organization's financial statements will make it easy to determine the company’s investment qualities. My proposal will be different if I use a flexed budget compared to if I use a fixed budget because the former will involve disregarding changes in the output or activity level. At the same time, the latter will include these changes in the company's budget. A fixed budget is static, and both incomes and expenditure are predetermined, while a flexible budget is flexible to the company's changing needs. Consequently, a flexible budget would complicate my proposal compared to a fixed budget.
Proposal Justification
The ratios I will use to support my proposal are price-earnings ratio, current ratio, profit margin, debt-to-equity ratio, net working capital turnover, and total assets turnover. I chose the price-earnings and quick ratios to determine the company’s market value and short-term solvency position (Aziz & Rahman, 2017). On the other hand, the profit margin and debt-to-equit...