Stakeholders

Accounting

Managers

internal: entity

Employees

INTERNAL STAKEHOLDER

solvency

• job security

• career/wage potential

• appropriate compensation

where?

• income statements

• equity/retained earnings

ratios:

• net profit

• earnings growth

• OCFR (cash from operations ratio)

Internal stakeholders :

managers + employees

external stakeholders: financing

1. owners + shareholders

2. creditors

external stakeholders: society

1. regulators

2. general public

external stakeholders: suppliers

1. customers

2. suppliers

Suppliers

external: supply chain

• “creditworthiness” - can repay credit purchases/debt

• Short term Liquidity/(risks)

where?

• Balance sheet

• cash flow stms

ratios:

• current

• quick ratio

• payables turnover

customers

external: supply chain

• continuity of goods n services

• ethical production standards

where?

• GPSF, balance sheets

• Sustainability reports

Ratios:

• OFC (cash flow from operation)

• qualitative disclosers/footnotes

creditors

external: financing

• ability to pay debt

  • solvency: long term

• liquidity risk

  • can short term pay

where?

• balance sheet

• cash flow statment

• notes

ratios:

• current and quick rations

• debt-to-equity ratios

• interest coverage

owners + shareholders

external: financing

• future capital returns

• future company value/profitability

• future dividend potential

where?

• income statement

• balance sheet

• equity statement

ratio:

• ROE (return on equity)

• EPS (earnings per share)

• P/E ratio (price/earnings ratio)

• Dividends yield

general community

external: society

• CSR

• ethical conduct

• community contribution

where?

• GPFS

• sustainability reports

• cash flows

• Notes: community engagement

ratios:

• ESG ratings

• Environmental impacts

regulators

external: society

e.g ATO, ASIC, Gov.

• legal compliance

• tax obligations

• propper reporting

where?

• ALL financial statements

• notes

• disclosures

ratios → compliance based

• tax payables