Assess Current Performance of an Organization Through Analysis of Financial Statements

Assess Current Performance of an Organization Through Analysis of Financial Statements
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Assess The Current Performance of an Organization Through Analysis of Financial Statements
Financial statements are an important component in understanding how an organization performs. Suppose you would like to evaluate the growth or sustainability of a firm. In that case, observing, analyzing, and evaluating the financial statements is crucial. This will provide a realistic outlook of the organizational prospects and how the firm will perform. Key financial records indicate a commitment to the Triple Bottom Line (TBL) Balanced Scorecard (Agrawal et al., 2019). Other records are maintained in marketing and sales, where the TBL offers crucial data. In this assessment, we will evaluate the organization's performance by analyzing the financial statements. The analysis identifies the financial records indicating commitment to TBL and other records in sales and marketing where TBL offers data. Further, using the TBL scorecard, the assessment will evaluate the alignment of the strategic plan with the KPIs, focusing on individual application of the scenario and evaluating the plan accordingly. The discussion will also identify the ideas within the plan that support Key Performance Indicator (KPI) criteria, citing specific ideas that meet the identified criteria and how they meet the criteria. In the subsequent section, the paper has a memo that describes how TBL data relates to the KPIs, identifying which additional TBL financial line items are needed to measure the cost for each criterion. The memo will refer back to the SWOT analyses from project one, explaining how functional consideration of individual departments impacts financial performance within the organization.
KPI and Triple Bottom Line Balanced Scorecard
Financial Records Indicating Commitment to TBL
Numerous financials are used to indicate the commitment to TBL within the organization. The TBL scorecard was influenced by John Elkington, who strived to measure sustainability in the 1990s through a new framework. With the TBL, the account goes beyond the conventional measures of profit, shareholder value, and return on investment and includes the social and environmental dimensions of the organization's activities (Gu et al., 2021). Therefore, the focus is on the interrelated components of the firm: profits, people, and the planet. This makes TBL an essential aspect of supporting sustainability and growth within an organization. With the TBL balanced scorecard, organizations are expected to focus on environmental and social concerns as much as on profits. Therefore, the financial records that indicate a commitment to TBL, in our case, include the income statement, balance sheet, and cash flow statement. All these statements showcase how the organization is committed to the three dimensions of accounting based on TBL.
Financial and Other Records Marketing and Sales Maintain Where TBL Provides Data
As noted, TBL cuts across the social, financial, and environmental components of accounting. This implies that there are other records maintained by marketing and sales that TBL offers data on. Since the accounting focuses on ...