Case 4 Interpreting Financial Results Fin 571
Interpreting Financial Results
Camila Walton
FIN 571 May 18, 2015 Dr. Adkins
Interpreting Financial Results
The financial statement of a business provides details of a company and if they are successful or if they are failing financially. The calculation of financial rations is use to determine the numbers and percentages that can affect the business profitability. The following financial ratio analysis will describes the financial status of CTAS, Cintas Corporation based on three years financial statements.
Financial ratios indicate the company’s performance and financial status. The financial department use different types of formulas to obtain the information needed. In the case of Cintas Corporation, the financial ratio analysis indicates the company had a significant increase on their total revenue, cost of …show more content…
The financial ratio typically analyzes trends and compares the company’s performance compared to other companies in the same industry. The financial ratio can be classified based on its information and frequency of use ( NetMBA, 2015).
Cintas income statement indicates the company has been growing significantly in the past three years. Based on the data in the financial stamen the company has an increase of 18.33% on total sales and 44.61% increase on net income growth. The company had a little decrease on numbers in the year of 2013 when the companies only increase their net income by 6.11% (NASDAQ, 2015).
There are three types of calculations use in order to calculate Cintas positioning in the market. These calculations provide the accurate information if the company is meeting their short-term financial obligations. From 2012 to 2014, the company had an increase of 22% on their current ratio. In the case of this company the information is: Financial
Camila Walton
FIN 571 May 18, 2015 Dr. Adkins
Interpreting Financial Results
The financial statement of a business provides details of a company and if they are successful or if they are failing financially. The calculation of financial rations is use to determine the numbers and percentages that can affect the business profitability. The following financial ratio analysis will describes the financial status of CTAS, Cintas Corporation based on three years financial statements.
Financial ratios indicate the company’s performance and financial status. The financial department use different types of formulas to obtain the information needed. In the case of Cintas Corporation, the financial ratio analysis indicates the company had a significant increase on their total revenue, cost of …show more content…
The financial ratio typically analyzes trends and compares the company’s performance compared to other companies in the same industry. The financial ratio can be classified based on its information and frequency of use ( NetMBA, 2015).
Cintas income statement indicates the company has been growing significantly in the past three years. Based on the data in the financial stamen the company has an increase of 18.33% on total sales and 44.61% increase on net income growth. The company had a little decrease on numbers in the year of 2013 when the companies only increase their net income by 6.11% (NASDAQ, 2015).
There are three types of calculations use in order to calculate Cintas positioning in the market. These calculations provide the accurate information if the company is meeting their short-term financial obligations. From 2012 to 2014, the company had an increase of 22% on their current ratio. In the case of this company the information is: Financial