Problem 1
A company having the Net working capital of 2.8 Lacs as on 30.06.10 indicates the following financial ratios and performance figures Current Ratio 2.4
Liquidity ratio1.6
Inventory Turnover 8
(on cost of sales )
Gross Profit on Sales 20%
Credit Allowed (months )1.5

The company s fixed Assets is equivalent to 90% of its net worth ( Share capital plus reserves ) while reserves amounted to 40 % of share capital Prepare the balance sheet of the company as on 30.06.2003 showing all calculation

Problem 2
Calculate Creditors Turnover Ratios from the following Data Particulars Rs
Opening Creditors 25000
Purchase returns 5000
Cash paid to Crs1,30,000
Closing Crs 15,000

Problem 3
Calculate the following Ratios
Current Assets Rs 5,00,000, Opening Stock – Rs 50,000, Cl Stock Rs 1,50,000, Cost of Goods Sold –Rs 12,00,000 , Gross profit – Rs 2,00,000 indirect expenses Rs 20,000 ,Equity Share Capital – Rs 7,00,000 , 10 % Preference share capital - Rs 3,00,000, 12 % debentures – Rs 2,00,000, Current liabilities Rs 2,00,000 and General Reserve – Rs 1,00,000

Problem 4
From the following figures and ratios draw out Balance sheet and Trading and P& L Account Particulars RS
Share Capital1,80,000
working Capital63,000
O/D10,000

There is no fictitious assets , In current assets there is no assets other than stock ,debtors and cash ,Closing stock is 20 % higher than the opening stock Particulars
Current Ratio 2.5
Proprietary ratio 0.7
Stock Velocity 4
NP Ratio 10%Av Cap Employed
Quick Ratio 1.5
Gross Profit Ratio 20%( Sales )
Debtors Velocity 36.5Year

Problem 5
From the following information , prepare the Balance Sheet ,Show the workings Particulars Rs
Working Capital 75,000
Reserves and Surplus 1,00,000
Bank O/D 60,000
Current Ratio1.75
Liquid Ratio 1.15...

...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...

...
RATIOANALYSIS
Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. In some cases, ratioanalysis can predict future bankruptcy.
Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:
1. Liquidity ratios
2. Capital Structure and Solvency
3. Return On Investment
4. Operating Performance
5. Asset Utilization
6. Market Measures
The ratios measure the short term ability of the company to pay its current short-term liabilities.
1. Liquidity Ratio
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio.
i. Current ratio:
The current ratio is the ratio of current assets to current liabilities
The company have decreasing trend in current ratio...

... Section III: Financial Analysis—RatioAnalysis
Profitability Ratios
When evaluating the company’s profitability, we pay attention to the following ratios which are commonly analyzed: Net Profit Margin, Accounts Receivables Turnover, Return on Assets and Return on Equity. From the tables and figures, all the ratios have increased over the past five years except for 2012. This means UPS is overall a healthy company and does a good job at generating profits.
Net Profit Margin Ratio
It measures how much net profit a company can earn from every dollar of sales. As shown in Table 1, net profit margin for UPS keeps consistent for each year. The profit fell in 2012 for several reasons, mostly due to the prohibition decision issued by the European Commission to stop the acquisition of TNT Express. The termination fee and related expenses are $284 million, which has a big impact the International Package segment (10-K: UNITED PARCEL SERVICE INC,Annual Report,28-Feb-2014). Also chief executive officer Scott Davis attributes this result to a cheaper and slower modes of transport in a slower growth environment that affects the profitability. In 2013, the ratio has been increased to 7.89%, this indicates UPS becomes more profitable and has better control over its expenses compared to previous years.
Accounts Receivables Turnover
This ratio...

...Use and significance of RatioAnalysis 8
1.1.2 Limitations 11
1.1.3 Classifications of ratios 13
1.2 Research Methodology 33
1.2.1 Need for the study 33
1.2.2 Scope of the study 33
1.2.3 Objectives of the study 33
1.2.4 Data sources 34
1.2.5 Limitations 34
Chapter 2. Profiles 35
2.1 Company profile 36
Chapter 3. Review of Literature 55
Chapter 4. Data Analysis 59
Chapter 5. Findings 86
Chapter 6. Suggestions 88
Bibliography 90
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|Sl. No |Table No |Title of the tables |Page No |
|1 |4.1 |Current Ratio |60 |
|2 |4.2 |Quick Ratio |61 |
|3 |4.3 |Cash Ratio |63 |
|4 |4.4 |Networking capital Ratio |64 |
|5 |4.5 |Debt Ratio...

...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...

...2009
FIANANCIAL STATEMENT ANALYSIS
BEXIMCO PHARMA
ASSIGNMENT
ON
Financial Report & RatioAnalysis
CURSE NAME: Financial Accounting
Course Code: ACT (142)
Program: BBA
Submitted BY
Md. Akther Sayed
Id No: 10510508
Bachelor of Business Administration
Submitted TO
Farhana Rohman
Course Instructor of Financial Accounting
Department of Business Administration
Submission Date
29th December, 2010
-------------------------------------------------
Acknowledgement
For the completion of the report the assistance of many individuals was required. Among all of them , it was our course teacher Mrs. Farhana Rohman course instructor of Financial Accounting who played the vital role by giving us an insight about the Financial accounting course and the guideline of preparing this draft helped immensely in preparing this plan . To prepare this report I get a lot of support from our course instructor and us really grateful to her. So at first we give special thanks to our teacher. We also got various types of facilities from the senior brothers. And also all those person we really help us to prepare this report.
-------------------------------------------------
Executive Summary
Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company based in Dhaka, Bangladesh and is acclaimed for its outstanding product quality,...

...RATIOANALYSIS (ALL VALUES IN Rs. MILLION)
1. GROSS PROFIT MARGIN (%):
GROSS PROFIT = NET SALES – COGS
= TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs)
= 53107 – (22510+21598+1025) = 7974
GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497%
2. RETURN ON ASSET(RoA)
RETURN ON ASSET = (PAT/TOTAL ASSET)*100
= (4606/63454)*100 = 7.258%
This indicates that around 7.3% of all assets have been utilized by Tech Mahindra to generate revenue & profit.
3. RETURN ON SHAREHOLDER’S FUNDS(RoS)
RETURN ON SHAREHOLDER’S FUNDS = (PAT/ SHAREHOLDER’S FUNDS)*100
= (4606/34432)*100 = 13.377%
This indicates that, shareholders can expect a profitability of around 13.4% if invested in Tech Mahindra.
4. RETURN ON INVESTMENT (RoI)
CAPITAL EMPLOYED (CE) = SHARE CAPITAL + RESERVES & SURPLUS + LONG TERM LOANS – NON OPERATING ASSETS – FICTITIOUS ASSETS
= 34432 + 6000 = 40432
RETURN ON INVESTMENT = (OPBT/CE)*100
= (5790/40432)*100 = 14.32%
Where, OPBT is Operating Profit Before Tax.
This ratio gives the overall performance of the company, Tech Mahindra.
TURNOVER RATIOS:
These ratios tell the effectiveness of utilization of resources & assets in generating revenue.
5. ASSET TURNOVER RATIO
ASSET TURNOVER RATIO = NET SALES/ TOTAL ASSET = 53107/63454 = 0.837 = 4:5
This...