Running Head: TEXAS ROADHOUSE 1
Texas Roadhouse
Prospective analysis is often used to determine specific challenges within systems used in operating different organizations. Thereafter, the leadership of that organization could implement sustainable changes that would enable the organization move away from inefficiencies within the system. This would be in the higher objective of achieving higher client satisfaction (Tezak, et al., 2009). In the case of prospective financial analysis, it would be prudent to perform this analysis due to the benefit if offers to an organization, including investment options, efficiency increase and performance improvements. As such, prospective analysis into Texas Roadhouse would be beneficial as it provides the observer with a view of the company’s financial performance, key ratio information, management strengths and weaknesses as well as investment capability. Therefore, the analysis could tell the potential investor or manager regarding issues within the company that would make it a make or break mission.
Aside from the financial projections, financial ratios would also be key within the company’s financial information. Notably, ratios such as quick ratio, return on assets and return on equities would be critical indicators for the company from both an investor and management perspective. In line with this is the need to forecast company performance. It can be done in a few steps, namely: the projection of sales and expenditure, create projections based on this data, determine the company’s financial needs, use the given projections to plan, provide for contingencies and monitor the progress of the company during the projection period (Business Development Bank of Canada, 2016).
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In conclusion, projections for Texas Roadhouse can easily be made by following the above steps, and by using prospective analysis to obtain the highest possible advantage to themselves, thereby informing projections.
References
Business Development Bank of Canada. (2016). 6 steps to making financial projections for your new business . Retrieved from Business Development Bank of Canada: https://www.bdc.ca/en/articles-tools/start-buy-business/start-business/pages/6-steps-making-financial-projections-new-business.aspx
Tezak, B., Anderson, C., Down, A., Gibson, H., Lynn, B., McKinney, S., & Sunstrum-Mann, L. (2009). Looking ahead: the use of prospective analysis to improve the quality and safety of care. Healthcare Quarterly, 12(Sp) .
