The current ratio is calculated as current assets divided by current liabilities. The current ratio for the Coca-Cola Company in 2008 was 0.93 (12,176/12,988) and for 2009 it was 1.28 (17,551/13,721). For every dollar of current liabilities in 2009, Coca-Cola has $1.28 of current assets. The ratio indicates that Coca-Cola has enough assets to cover its debts. From 2008 to 2009, the company had a large increase in cash, which increased their current assets. They also had a similar increase in the long-term debt, which leads to the conclusion that they took out a large loan to increase their cash. The company is more liquid in 2009 compared to 2008. The industry average for 2009 was 1.41 (BizMiner, 2007-2010). This means that Coca-Cola is less liquid than its competitors. The debt ratio determines if the company finances its assets more by debt or equity. It expresses what percentage of the firm’s assets is financed by debt. The remaining percentage is then financed by equity. The debt ratio is calculated as total debt divided by total assets. The debt ratio for Coca-Cola in 2008 was 32% (. For 2009, debt as a total percent of assets is 28% (23,325/48,671). Companies generally finance about 40% of their assets (book). Coca-Cola therefore uses significantly less debt than the average company. Return on common equity measures the earnings available to stockholders. It is calculated as net income divided by common equity including par, paid in capital, and retained earnings. In 2008, the return on common equity for Coca-Cola was 28%. In 2009, it is 27%. The industry average is 23.7%, so in comparison to the industry, Coca-Cola’s investors receive a greater return on their investment. The days’ receivable ratio calculates the how many days on average it takes for a company to collect on its sales to customers in credit (http://www.zenwealth.com/BusinessFinanceOnline/RA/AssetManagementRatios.html) . First, one must determine the accounts receivables turnover ratio,...

...executive.
The company values is: trusted to deliver excellence, the vision is: better power for a changing world and the strategy is: understanding our customers, innovation, and profitable growth. (Rolls Royce holdings plc, 2013)
Appendix 2.0-RATIO FORMULA
2.1-profitability
-Gross margin
£ m
2013
£ m
2012
gross profit
3,316
2,745
gross margin =
×
100
×
100
21%
×
100
23%
sales
15,513
12,161...

...RATIO ANALYSIS
Ratios | 2007 | 2008 | 2009 |
CurrentRatio | 0.98 | 0.79 | 0.91 |
Quick Ratio | 0.66 | 0.41 | 0.46 |
Working Capital | (43318926) | (480192556) | (199882615) |
-------------------------------------------------
2007
CurrentRatio (C.R):-
It shows the relationship between size of current assets and size of current liabilities....

...project, that is, ICTT at Cochin is partly operational. Five projects are under implementation and 17 projects are in the pipeline.
Thus, Indian ports are indispensable in the development of country’s maritime trade and economy, owing to India’s current share in global merchandise trade at around 0.80%. They are not only considered as trade gateways, but also integral components of the global logistics and transportation chain...

...1) CurrentRatio
The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the currentratio, the more capable the company is of paying its obligations.
2) Quick Ratio
An indicator of a company’s short-term liquidity. The quick ratio measures a company’s...

...Week 5’s Ratio Memo
April 30, 2012
Memorandum
Subject: Liquidity, profitability, and solvency ratios
Our team was asked to evaluate the liquidity, profitability, and solvency ratios of Berry’s Bug Blaster. Please note the attachments show each ratio in detail if you so desire more information pertaining to each.
Liquidity Ratios show the current...

...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 =
CurrentratioCurrentratio (2006-2007) = Current assets / Current liabilities = 3,424/4,790...

...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...

...Introduction
Financial ratio analysis is important to a business’s success. A financial ratio analysis is an indicator of a company’s financial performance. It helps a business compare company financials with previous periods and also allows a business to contrast its financials to similar companies. A financial ratio can provide a clear image of a company's state and identify trends that are emerging.
Use of ratios in analyzing...

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