Take some time to reflect on the key topics and concepts studied over the past ten weeks:

• Discuss two concepts or areas of knowledge that you feel have been enhanced for you during the course.
• Explain how you can apply this knowledge in your current or future career path.

 

Course Reflection

A cash flow statement and the capitalization of shares are the two outstanding concepts that have enhanced me during this class.  A cash flow statement is a crucial financial statement that lists cash flowing into and out of a company. I understood that a cash flow statement is critical since investors use it to measure the long-term profitability of a project. This is achieved using a cash flow budget, which enables the organization’s cash flows to be projected. Also, a cash flow statement helps the organization evaluate whether they have enough money to cater to its bills, which is critical for its financial health. Nguyen & Nguyen (2020) argued that financial institutions used cash flow statements when making lending decisions to a given film. Therefore, the concept of cash flow statements enhanced my understanding of its importance in helping the organization achieve financial health and a good credit score.

On the other hand, the concept of capitalization of shares enhanced my understanding of investments. For instance, Hertz was affected by decreased demand for used cars due to the pandemic and opted to apply capitalization of shares to enhance its stock rates. Unfortunately, the organization was at threat of going bankrupt since it remained to pay its current debt of $650 million to its creditors after making $500 million sales in the stock market. However, Hertz could have used capitalization of shares to make risk assessments of their investments. Fernando (2021) noted that capitalization of shares is an effective risk assessment metric that helps an organization determine its portfolio diversity and choose favorable stocks. Thus, this concept of capitalization of shares enhanced me since I can quickly evaluate any given organization before investing in it.

To sum, these two concepts are critical for my career in the business world. Since I admire to venture more into investments, I will adequately use cash flow statements to achieve financial health and enhance my credit score for my company. During my career path, I am sure I will have to complete different transactions in the stock market. Therefore, I will apply the capitalization of shares as a risk assessment matrix to gauge organization portfolio diversity and choose favorable stocks.