Ratio analysis
Debt ratio
Debt ratio (2006-2007) = Total liabilities / Total assets = 10,170/12,064 = 0.84 Debt ratio (2007-2008) = 9,210/11,769 =
Debt ratio (2008-2009) = 10,003/11,229 =
Debt ratio (2009-2010) = 11,043/12,537 =
Current ratio
Current ratio (2006-2007) = Current assets / Current liabilities = 3,424/4,790 = 0.71 Current ratio (2007-2008) = 2,164/4,498 =
Current ratio (2008-2009) = 1,326/5,389 =
Current ratio (2009-2010) = 2,697/6,085 =
Return on sales (ROS)
Return on Sales (2006-2007) = Net income / Sales Revenue = 438/8,492 = Return on Sales (2007-2008) = 696/8,753 =
Return on Sales (2008-2009) = (-358)/8,992 =
Return on Sales (2009-2010) = (-425)/7,994 =
Asset Turnover ratio
Asset Turnover ratio(2006-2007) = Sales revenue / Total assets = 8,492/12,064 = Asset Turnover ratio(2007-2008) = 8,753/11,769 =
Asset Turnover ratio(2008-2009) = 8,992/11,229 =
Asset Turnover ratio(2009-2010) = 7,994/12,537 =

Return on Assets
Return on Assets (2006-2007) = Net income / Total assets = 438/12,064 = Return on Assets (2007-2008) = 696/11,769 =
Return on Assets (2008-2009) = (-358)/11,229 =
Return on Assets (2009-2010) = (-425)/12,537
Gross Profit Margin
Gross Profit Margin (2006-2007) = Gross Profit / Sales Revenue = 556/8,492 = Gross Profit Margin (2007-2008) = 875/8,753 =
Gross Profit Margin (2008-2009) = (-220)/8,992 =
Gross Profit Margin (2009-2010) = (-231)/7,994 =
Acid Test
Acid test (2006-2007) = (Current assets – Inventory) / Current liabilities = (3,424-74)/4,790 = Acid test (2007-2008) = (2,164-109)/4,498 =
Acid test (2008-2009) = (1,326-125)/5,389 =
Acid test (2009-2010) = (2,697-97)/6,085 =
Liquidity Ratio
Liquidity ratio (2006-2007) = (Cash + Short term investment) / Current liabilities = 2,301/4,790 = Liquidity ratio (2007-2008) = 832/4,498 =
Liquidity ratio (2008-2009) = 262/5,389 =
Liquidity ratio (2009-2010) = 1,664/6,085 =
Return on Equity
Return on Equity (2006-2007) = Net income / Stockholders’ equity =...

...Zhiwei Wu
Ratio Analysis of Google Company
Ratio analysis is an important way to investigate a corporation’s financial statement. It provides the detailed data that indicate a company’s financial activity, performance and how well the managers operate their company. It is very useful for the investors, shareholders and even the company’s managers when they want to understand the financial situation of the company and helps them to make the right investment decisions. Now I am trying to use the ratio analysis to analyze the Google Corporation here.
There have five different types of ratio analysis: liquidity ratios, activity ratios, leverage ratios, profitability ratios and marker ratios. All of them have different kinds of specific ratios which indicate different information about the company. But at here, I pick Current Ratio, Average Collection Period and Return on Equity (ROE) to do this analysis.
1. Current Ratio.
Current Ratio = Current AssetsCurrent Liabilities
Current Ratio indicates a company’s ability to meet its short-term obligations. The Current Ratios of Google Corporation in 2008, 2009, and 2010 were 8.76, 10.62 and 4.16. As we know that high Current Ratio indicates more liquid for a company. From the result we calculated by...

...Ratio Analysis
Ratio analysis is basically used to understanding the financial health of a business entity. With the help of ratios we can easily calculate from current year performance of the companies and are then compared to previous years. Ratio analysis conducts a quantitative analysis of information in a company’s financial statements. These Ratios are most commonly used in banking sector can be divided into five main categories
Liquidity Ratios
Leverage Ratios
Profitability Ratios
Activity Ratios
Market Ratios
A) Liquidity Ratios
Liquidity Ratios are used to determine a company's ability to meet its short terms obligations.
These include;
1) Current Ratio
2) Acid Test Ratio
3) Working capital
Current Ratio
What Does Current Ratio Mean?
A liquidity ratio that measures a company's ability to pay short-term obligations. Also known as "liquidity ratio", "cash asset ratio" and "cash ratio".
OR
It is a measure of general liquidity and is most widely used to make the analysis for short term financial position or liquidity of a firm. It is calculated by dividing the total of the current assets by total of the current liabilities.
Formula = Current Assets / Current Liabilities...

...A ratio analysis of the firm’s financial performance is the most reliable way to identify the issues and opportunities for the joint venture. Generally, a ratio analysis includes four groups: (1) Liquidity ratio, (2) Accounting activity ratio, (3) Profitability ratio, and (4) Leverage ratio.
Table 1 is a liquidity ratio analysis of LEI, SW, and CF. The current and quick ratios are designed to measure the firm’s short-term liquidity, or the firm’s ability to meet its short-term debts from its current assets. The debt-to-equity ratio measures the firm’s ability to fulfill its long-term obligations.
Table 1: Liquidity Ratio Analysis
Name of Company Current Ratio Quick Ratio
LEI 1.49 1.17
SW 2.14 1.09
CF 1.91 1.23
*All calculation based on LEI, SW, and CF 2004 financial information provided by University of Phoenix.
From Table 1, the current ratio for LEI, SW and CF are all acceptable. With 1.91:1 for CF, or the consolidated firm has $1.91 of current assets to meet $1.00 of its current liability, the ratio indicates the merger creates adequate liquidity for the firm to meet current liability. The quick ratio stands in good shape as well. With 1.12:1 for CF, or the consolidated firm has $1.23 of quick assets to meet $1.00 of its current liability.
Table 2...

...
Ratio Analysis University of Phoenix
HCS/571 Finance Resource Management Sept 24, 2013Rosetta Stringfellow, MBA, BSRatio Analysis Ratio analysis is a widely used managerial tool that compares one number with another to gain insights that would not arise from looking at either of the numbers separately. Ratio analysis is used to examine and interpret the relationship between two numbers on a financial statement. This is done so that the managers of a facility can determine whether or not the organization needs to change any of their financial variables in order to remain competitive in their market. The ratio analysis converts numbers into meaningful comparisons which managers can use to compare their facilities with others within the same market. The management team can also use the ratio analysis to see how the facility is performing from year to year. In sum, ratio analysis shows the strengths and weaknesses of a health care facility (Finkler, Kovner, & Jones, 2007).
The financial data for this paper are from the financial statements of Norwalk Hospital located in Fairfield County, Connecticut. Common size ratios allow comparisons between comparable health care organizations. It is important to see how the facility compares to others in the region of the market place (Finkler et al., 2007)....

...Ratio Comparisons: Albertson’s Versus Kroger Company
Albertson’s 2-Year Comparison
Ratios are important tools to be used when analyzing a company’s financial health. There are four categories of ratios that are broken down into thirteen ratios. Eight ratios will be used to analyze the financial statements of Albertson’s for the years 2003 and 2004.
The first category of ratio analysis is the liquidity ratio. In this category, we have calculated the current ratio. The current ratio for Albertson’s for 2003 is 1.2 and for 2004 is 1.05. Companies that have a ratio at or below 1.0 should be concerned, unless they have inventory that can be quickly converted to cash. www.beginnersinvest.about.com .
In the case of Albertson’s, this would be expected. This is also proven with the quick or acid-test ratio. For 2003, the ratio is .36 and or 2004 is .28. The Quick Test ratio does not apply to the handful of companies where inventory is almost immediately convertible into cash (such as McDonalds, Wal-Mart, etc.). www.beginnersinvest.about.com.
The second category of ratios is the asset utilization ratios. In this category, we have calculated the total asset turnover. For the year 2003, the ratio is 1.93 and for 2004 the ratio...

...Patton-Fuller Ratio Computation
Shourn Henderson, Marilyn Lilly, Noralva Rodriguez
HCS/405
February 11, 2013
Dr. Ben Kukoyi
Patton-Fuller Ratio Computation
Introduction
This paper will address the ratio computations to Patton-Fuller Community Hospital taken from Audited and Unaudited Reports from 2008-2009. From 2008-2009 the existing assets reduced, but showed a growth in the hospital’s responsibilities. The hospital is presently making adequate revenue to cover the debts, which equals to no profit. Revenue needs to rise to avoid the debts of the hospital from increasing. Providing excellence service will in turn increase the quantity of patients seen eventually increasing revenue.
The Current Ratio decrease, due to assests, and an increase in liabilities, which indicates a 2.23% change in the ratio of assets to liabilities. The sharp drop in cash was offset by large rises in Net Accounts Receivable and Inventory, which are ordinarily unfavorable events also. However, if significant supplies were purchased (due to vendor discounts), the increase in Inventory could have been an astute business decision. The uncollected Accounts Receivables are troublesome.
1.The Quick Ratio decrease. The main difference between the Current Ratio and the Quick Ratio is 6.05:1 “inventory” in the Quick Ratio.
1.The Days Cash...

...Profitablity Ratio Analysis
This analysis ratio based on FAME report and annual report of Thortons (PLC) from 2007 to 2010.
1. Gross Profit Margin
During period 2007-2010, Thorntons was achieved the highest gross profit margin in 2007. It was increased the sales/revenue 5.3% (from ₤ 176.60m to 186.00 m). In 2008 the sales was increased 11.9% (from ₤ 186.00m to 208.12 m) however the gross profit margin was decreased due to the high cost of good sales compare to previous year which was increased 19.7%. In financial report 2009, the gross profit was declined from 105.105 m to 104.969m and declined of gross profit margin from 50.5% to 48.87$. In 2010, there was increased in gross profit margin though the sales was decreased from the previous year.
In terms of performance against its competitors in similar industry, the performance of Thortons is relatively higher during period 2007-2010 (Figure.1). The performance of other competitors, Dunhills, only could achieve the 42.16% in 2010. Compare to its competitors , it was indicated that Thorntons has high gross profit margin, meaning that Thortons has high production efficiency. Having High gross profit margin, Thorntons could pay its operating expense, tax , employee benefits etc.
2. Operating Profit Margin
In view of its Operating Profit Margin, Thorntons performance was increased in two consecutive years from 2007 to 2008 with ratio 3.81 % and 4.03%....

...Low Debt Ratio: How Does it Contribute to Company Performance?
Introduction
It has been said that you must measure what you expect to manage and accomplish. The same is true when one considers business performance. In a business measurement drives improvement which drives satisfaction. In turn, satisfaction results in loyalty from customers which means the financial success of a business. Without measurement, one has no reference to work with and thus, tends to operate in the dark.
One way of establishing references and managing the financial affairs of an organization is to use ratios. Ratios are simply relationships between two financial balances or financial calculations. These relationships establish our references so we can understand how well we are performing financially. Ratios also extend our traditional way of measuring financial performance; i.e. relying on financial statements. By applying ratios to a set of financial statements, we can better understand financial performance.
Statement of the Problem
The debt ratio compares a company's total debt (the sum of current liabilities and long-term liabilities) to its total assets (the sum of current assets, fixed assets, and other assets such as 'goodwill'), which is used to gain a general idea as to the amount of leverage being used by a company. It compares the funds provided by creditors to the funds provided by...