Analyzing the financial performance of a company is crucial for any business at any given point of time, but especially when the company is heading in a new direction.

You are aware that your company has made the strategic decision to move to a triple bottom line (TBL)-focused business model. You have already collaborated with various departments within your organization to understand their perspectives.

Now you will review the current financial performance of your organization and evaluate whether the operational plan aligns with key performance indicators of the finance department.

Prompt

Using the financial records of the health and beauty company that you work for, as well as the financial records of the company you chose in Module One, make a consulting report outlining the following criteria:

1. Explain key financial performance indicators that various stakeholders would be most interested in. Support your rationale and include the following stakeholders in your response:
   1. Employees
   2. Shareholders
   3. Community groups
2. Explain additional key financial line items related to triple bottom line that are required to measure cost. Support your rationale.

Supporting Material

Financial records of the health and beauty company you work at

1. Consolidated balance sheet See picture below
2. Consolidated cash flow statement See picture below
3. Consolidated income statement See picture below

Financial records of the company you chose in Module One

1. Balance sheet of your chosen company
2. Cash flow statement of your chosen company
3. Income statement of your chosen company
4. See this link: https://thewaltdisneycompany.com/app/uploads/2020/01/2019-Annual-Report.pdf

Transcribed Image Text:

Consolidated Balance Sheet $ thousand 31-Dec-18 $ thousand $ thousand 31-Dec-17 31-Dec-16 Assets Current assets Cash and cash equivalents 6,121 4,272 3,317 Inventories 8,164 4,301 3,962 Accounts and other receivables 14,178 10,482 9,219 Prepaid expenses 1397 472 29,860 19,527 488 16,986 Non-current assets Property, buildings and equipment 17,062 11,088 10,270 Intangible assets 7,962 7,152 6,520 Goodwill (See notation below) 8,000 8,000 8,000 Long-term Financial assets 3,427 1072 36,451 27,312 1016 25,806 Total assets 66,311 46,839 42,792 Question to consider - Is the company active in collecting on its accounts (profit)? Questions to consider - Is the building LEED Certified (planet)? -Is the equipment new and energy efficient (planet)? - Is the plant minimizing waste (planet)? - Is the property focused on preserving natural resources (planet)? - Is the equipment effectively producing more and safer products (people, profit)? Questions to consider Is the company using its financial assets to support communities (people)? - Is the company increasing its financial assets by decreasing waste (planet, profit)? - Is the company focused on investing in funds of TBL companies (planet, profit)? - Is the company's stock portfolio diversified (people, planet, profit)? Liabilities Current liabilities Question to consider Accounts and other payables 7,768 7,457 6,426 Short-term debt 3,691 2,613 7,378 - Is the company managing liabilities to limit short-term interest payments (profit)? Deferred revenue 898 1,445 1,088 Other current liabilities 620 624 525 12,977 12,139 15,417 Non-current liabilities Long-term debt 5,499 5,784 8,158 Other non-current liabilities 339 346 1200 5,838 6,130 9,358 Total liabilities 18,815 18,269 24,775 Equity Shareholders' equity Common Stock Additional Paid-in-Capital Retained earnings Total equity Total liabilities and equity 134 120 3,574 2,227 110 2,107 43,788 26,223 15,800 47,496 28,570 18,017 66,311 46,839 42,792 Question to consider - Is the company reinvesting its retained profit into TBL initiatives Notation: Goodwill is defined as "an intangible asset that is created when one company acquires another company for a price greater than its net asset value." It has nothing to do with charitable or philanthropic efforts. Consolidated Balance Sheet $ thousand 31-Dec-18 $ thousand $ thousand 31-Dec-17 31-Dec-16 Assets Current assets Cash and cash equivalents 6,121 4,272 3,317 Inventories 8,164 4,301 3,962 Accounts and other receivables 14,178 10,482 9,219 Prepaid expenses 1397 472 29,860 19,527 488 16,986 Non-current assets Property, buildings and equipment 17,062 11,088 10,270 Intangible assets 7,962 7,152 6,520 Goodwill (See notation below) 8,000 8,000 8,000 Long-term Financial assets 3,427 1072 36,451 27,312 1016 25,806 Total assets 66,311 46,839 42,792 Question to consider - Is the company active in collecting on its accounts (profit)? Questions to consider - Is the building LEED Certified (planet)? -Is the equipment new and energy efficient (planet)? - Is the plant minimizing waste (planet)? - Is the property focused on preserving natural resources (planet)? - Is the equipment effectively producing more and safer products (people, profit)? Questions to consider Is the company using its financial assets to support communities (people)? - Is the company increasing its financial assets by decreasing waste (planet, profit)? - Is the company focused on investing in funds of TBL companies (planet, profit)? - Is the company's stock portfolio diversified (people, planet, profit)? Liabilities Current liabilities Question to consider Accounts and other payables 7,768 7,457 6,426 Short-term debt 3,691 2,613 7,378 - Is the company managing liabilities to limit short-term interest payments (profit)? Deferred revenue 898 1,445 1,088 Other current liabilities 620 624 525 12,977 12,139 15,417 Non-current liabilities Long-term debt 5,499 5,784 8,158 Other non-current liabilities 339 346 1200 5,838 6,130 9,358 Total liabilities 18,815 18,269 24,775 Equity Shareholders' equity Common Stock Additional Paid-in-Capital Retained earnings Total equity Total liabilities and equity 134 120 3,574 2,227 110 2,107 43,788 26,223 15,800 47,496 28,570 18,017 66,311 46,839 42,792 Question to consider - Is the company reinvesting its retained profit into TBL initiatives Notation: Goodwill is defined as "an intangible asset that is created when one company acquires another company for a price greater than its net asset value." It has nothing to do with charitable or philanthropic efforts.