Listed below you will find the findings from the current and quick ratios calculations. Huffman trucking’s current ratio within the liquidity ratio during 2 years indicates an increase. The Quick ratio within the liquidity ratio also indicates an increase. Since prospective lenders want to see a positive current ratio, they would be a type of user that would be interested in this type of ratio. Since the quick ratio evaluates Huffman Trucking’s creditworthiness, investors would be the type of user interested in this type of ratio.

The receivables turnover also is a part of measuring liquidity. It measures how quickly Huffman Trucking can convert certain of their assets to quick cash. It also tells how many times on average Huffman Trucking collects its receivables during a given period. This indicates Huffman Trucking’s debt collection ability. The receivables turnover ratio gives an indication if Huffman Trucking is having difficulty collecting from their credit made sales. The formula for Huffman Trucking to use to find this ratio is the net receivable sales ÷ average accounts receivables. The inventory turnover measures the number of times on average that Huffman Trucking sells inventory during a given period. Inventory turnover tells how often profit can be made through inventory. The formula to compute this ratio is the cost of goods sold ÷ the average inventory. Huffman Trucking Liquidity Ratios

Current Ratio:Current assets/Current liabilities
= $111,728/$88,827
= 1.258

...Financial ratioanalysis
A reading prepared by Pamela Peterson Drake
OUTLINE
1.
2.
3.
4.
5.
1.
Introduction
Liquidity ratios
Profitability ratios and activity ratios
Financial leverage ratios
Shareholder ratios
Introduction
As a manager, you may want to reward employees based on their performance. How do you know
how well they have done? How can you determine what departments or divisions have performed
well? As a lender, how do decide the borrower will be able to pay back as promised? As a manager of
a corporation how do you know when existing capacity will be exceeded and enlarged capacity will be
needed? As an investor, how do you predict how well the securities of one company will perform
relative to that of another? How can you tell whether one security is riskier than another? We can
address all of these questions through financial analysis.
Financial analysis is the selection, evaluation, and interpretation of financial data, along with other
pertinent information, to assist in investment and financial decision-making. Financial analysis may be
used internally to evaluate issues such as employee performance, the efficiency of operations, and
credit policies, and externally to evaluate potential investments and the credit-worthiness of
borrowers, among other things.
The analyst draws the financial data needed in financial...

...RatioAnalysisRatioanalysis is one of the techniques of financial analysis where ratios are used as a yardstick for evaluating the financial condition and performance of a firm. Analysis and interpretation of various accounting ratios gives skilled and experienced analyst a better understanding of the financial condition and performance of the firm than what he could have obtained only through a perusal of financial statements.
Types of ratio’s
1. Profitability ratio
2. Leverage ratio / Capital structure ratio
3. Turn over ratio
4. Liquidity or Short term solvency ratio’s
Profitability ratio : Profitability ratio measures profitability of a concern firm or company
Net profit ratio: Net profit ratio is the ratio between net profits after taxes and net sales it indicates what portion of sales is left to the owners after operation expenses.
Net profit ratio = (Net profit after taxes / Net sales) x 100
Operating ratio: Operating ratio is the ratio between cost of goods sold plus operating expenses and the net sales
Operation ratio = {(operating expenses + cost of goods sold)/ net sales)} x 100
Cost...

...Contents
1. Introduction | 2 |
2. Company Background | 2 |
3. An examination of financial statements | 2 |
4.1 Vertical analysis 4.2 Horizontal analysis | 23 |
4. Key ratiosanalysis | 4 |
5. Share issues | 5 |
6. Conclusion | 5 |
7. Bibliography | 6 |
Table of Appendixes
1. Income statement – Horizontal and vertical analysis |
2. Statement of financial position – Horizontal and vertical analysis |
3. Ratioanalysis - Liquidity and Profitability |
4. Ratioanalysis – Efficiency and Investment |
5. FTSE 100 Index – weekly share prices table and graph |
6. Invensys plc – weekly share prices table and graph |
1. Introduction
This report gives an analysis of financial statement of Invensys plc over the past two years. The main aim of this report is to analyse company’s performance and to compare it with other companies working in the similar sector. The purpose of this report is to present the results of analysis to its potential stakeholders. The three form of analysis will be done on financial statements of this company (i.e. vertical analysis, horizontal analysis and ratioanalysis), which will help us to examine the liquidity, profitability and...

...RatioAnalysis Assignment-Danielle Goettl
Using the financial ratios studied in this course, prepare a financial analysis of Marriot's financial results for 2007-2011. Your analysis should address the following:
1. Income Statement:
a. What trends do you see in Total Revenue? The trends that I see are that the total revenue for Marriot has stayed fairly consistent over the last five years. The smallest revenue year was in 2009 and but it wasn’t hugely drastic.
b. How does 2011 net income compare to prior years? What items shown on the income statement show significant changes? In 2009 they had a huge unusual expense. They were also negative in the following categories; operating income, income before taxes, income before taxes and net income. The other year that they had a lower profit was in 2011 when they again had a large expense in the unusual expense column.
2. Balance Sheet:
a. Using ratios introduced in your assigned readings for this course, calculate (show your calculations):
i. at least four ratios for 2011.
1. Working Capital. Current Assets-Current Liability. 5910-2558=3352
2. Current Ratio: Current Assets / Current Liability. 5910/2558= 2.31
3. Dept equity: Total Liabilities/ total Stockholders’ Equity: 1. 6691/781=8.58:1
4. Shareholders’ Equity: Total Assets- Total Liabilities. 5910-6691=-781...

...Financial Reporting II
Review of RatioAnalysisRatioanalysis is a useful tool for analyzing financial statements. Calculating ratios will aid in understanding the company’s strategy and in understanding its strengths and weaknesses relative to other companies and over time. They can sometimes be useful in identifying earnings management and in understanding the effect of accounting choices on the firm’s reported profitability and growth. Finally, the ratios help in obtaining a better understanding of a firm’s current profitability, growth, and risk which can improve forecasts of future profitability and growth and estimates of the cost of capital.
In reviewing the basic financial ratios, we will examine the ratios of Best Buy for the fiscal years ended March 2, 2002 and March 3, 2001. Excerpts from Best Buy’s financial statements are included at the end of this document. Best Buy is a growing company. The following table reflects the growth in sales and income during the year ended March 2, 2002:
Year Ended
March 2, 2002
Year Ended
March 3, 2001
% Growth
Sales
19,597
15,327
28%
Net Income
570
396
44%
Average book value
2,171.5
1,459
28%
Average assets
6,107.5
3,917.5
52%
Average debt
558
163.5
177%
Note that sales and net income rose in 2002 relative to 2001. Also note, however, that total...

...ANALYSIS OF FINANCIAL STATEMENTS
Financial statement analysis is the study of relationships between the elements of the same statement or different financial statements and the trend of these elements. The purpose of financial statement analysis is to determine the meaning and significance of the data contained in the statements so that a forecast may be made of the prospects for future earnings, expected dividends and the ability of the business to pay interest and debt as it matures. Financial statement analysis involves rearrangement of financial information, comparison, analysis and interpretation of that information.
Financial statement analysis can be external or internal; horizontal or vertical; and intra-firm or inter-firm.
Analysis done by the management to assess the financial health of the organization and its operational efficiency is called internal analysis. Analysis carried out by parties external to the organization such as investors, credit rating agencies, government agencies etc. is called external analysis. Horizontal analysis compares financial data over a number of years to analyze the trend. Vertical analysis is based on the financial data of a particular year. Inter-firm analysis compares financial variables of two or more firms to get an idea of their...

...RatioAnalysisRatioAnalysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios.RatioAnalysis as a tool possesses several important features. The data, which are provided by financial statements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be used in a form of trend analysis to identify areas where performance has improved or deteriorated over time.
Because RatioAnalysis is based upon accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical Cost Accounting and inflation. Therefore, RatioAnalysis should only be used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further.
The...