Analyzing Shareholder Expectations and Financial Metrics

This report analyzes how to meet shareholder expectations regarding credit ratings, company image, earnings per share (EPS), return on equity (ROE), and stock price. It discusses maintaining a stable debt-to-equity ratio, ensuring a positive public image, and improving EPS through strong cash flows. The report emphasizes the importance of a healthy ROE by improving asset turnover and profit margins. It also highlights the significance of transparency and corporate governance in boosting investor confidence and meeting stock price expectations. The report uses resources to support its claims and provides insights into how companies can achieve long-term shareholder satisfaction.

Discuss how you would ensure that the five key share holder expectation
continue to be met or how you will ensure that you address any
shortcomings?
Key Expectations :
Credit Rating
Image rating
earning per share
Stock Price
Return on equity
Solution:
Credit rating defines the company ability to pay back its debt and fi nancial due obligations and the likeliness
of default is very low n order to keep a good credit rating of the company the company should ensure. I
that it has stable debt equity ratio i e ratio cash fl ow of the company should also be stable nterest. . 2:1 , . I
coverage ratio stable company should have the capacity to meet its working capital requirement on a,
daily basis cash conversion cycle should be low company should have the new e ploration and innovation, , x
technique for the future growth and prospects of the company.
mage rating means how you define the company image in front of outsiders he company image is definedI . T
through its past histories advertising facts mission and vision of the company that play together to form, , ,
a positive public image in front of public and strong bonding with the outsiders.
An entity image can be improved by keeping in mind all the above factors depicted above for long term
sustenance of image in front of public.
S which stands for arning per Share which tells the shareholders about the company profit makingEP E
capability in relation to per share outstanding t is also an indicator of dividend that is distributed to. I
shareholders and the strong S is a positive sign of growth and the company can only distribute S if itEP EP
has a strong earning potential enerally before investing in a company investors go with the company who. G
has strong SEP .
or a company to maintain a strong S it must ensure that the company does not carry a very highF EP
debt and the company S can also be distorted if there are mergers and acquisitions and the main thingEP
to be considered is that the entity must have a strong cash fl ows . imitations of arning er Share(L E P ) heseT
relevant points will ensure that the investors e pectation is meet regarding S of the companyx EP .
Return on quity sometimes stand as R it shows the profit position of the entity how much the entity is ableE OE ,
to generate profit from the investment of its shareholders t is also called return on net worth o keep a. I . T

healthy return on equity the company should always improve asset turnover ratio increase profit margin, ,
distribute the idle cash lying try to do ta es lower fi nance with debt and equity both in order to keep a, x ,
balance between two. smallbusiness chron com( . . ) hese few factors will help the entity toT ensure a good
return on equity position and satisfaction to shareholders on the long term.
Stock price is the price which the investors are willing to pay off a single share if the share is bought n. I
order tomete pectation boost the investor confidence for the company should ensure transparencyx , ,
regarding company matters with the shareholders ensure corporate governance with a healthy fi nancial,
position of the company will ensure that the shareholder e pectation regarding price of stock are metx .
Bibliography
imitations of Earning Per hareL S n d Retrieved August from www morningstar co uk. ( . .). 2, 2018, . . . :
http www morningstar co uk uk news the limitations of earnings per share asp:// . . . / / /105269/ - - - - - . x
small usiness chron comb . . n d Retrieved August from ow to improve Return n quity. ( . .). 2, 2018, H O E :
https smallbusiness chron com improve return equity html:// . . / - - -59183.