Ratio | Industry benchmark ratio| Woolworths’ ratio| Brief Comment| Current Ratio| 1.2:1| 0.80:1| The current ratio ofWoolworth is considerablybelow industry average themovement from it is 33.33% (1.2-0.8)/1.2*100) Which is not really good for business| Liquid ratio| 0.7:1| 0.34:1| The Liquid ratio of Woolworth is considerably below industry average. The movement is 51.43 %. It is showed that the business may have problem in paying their debt.(0.7-0.34/0.7*100)| Gross Profit ratio| 25.9%| 26.03%| The gross profit ratio of Woolworth is above industry average. Is higher by 0.13% Which indicate a good thing for business| Net Profit ratio| 2%| 3.95%| The net profit ratio of Woolworth is nearly double of industry average. Is higher by 1.95%. | Return on Investment| 8.1%| 10.15%| Return on Investment of Woolworth is above the industry average by 2.05% that mean is very good for Woolworth in term using their asset to make a profit.| Accounts Receivable collection Period| | 1.70 days| |

Inventory turnover ratio| 16.6 times| 11.20 times| The Inventory turnover ratio of Woolworth is below the industry average, which is still quite good while Woolworth still have high net profit because the sales increase.| Debt to Equity ratio| 89.6%| 63.22%| The debt Equity Ratio of Woolworth is below the industry average by 26.38% which is indicating good for the business. It is show that Woolworth have ability to pay their debt with capital| Times Interest cover| 3.6 times| 9.2 times| The times interest cover of Woolworth is higher compare the industry benchmark by 5.6 times. Which is showing that Woolworth have a capability to pay their interest from their loan| | | | |

| | | |

Report
* Liquidity : The current ratio and the liquid ratio are both below the industry average by 0.4 indicating potentially minor liquidity problem in the future. Might suggest that the business is not well placed to pay its...

...Ratio, Vertical, and Horizontal Analyses
Regina Stewart
XACC/280
February 3, 2012
Jose Rodriguez
Ratio, Vertical, and Horizontal Analyses
A detailed examination of the tools used in financial analysis, in addition to their various functions, is provided within this paper. The current ratio and calculations on the questions are provided herein.
A variety of tools are used to assess the importance of financial data. Frequently used tools of financial statement analysis consist of horizontal analysis, vertical analysis and ratio analysis. These techniques assist in the evaluation of financial statements providing information regarding the financial condition of a business.
Evaluating the data of financial statements over a period of time, is considered horizontal analysis and is primarily used in intracompany comparisons with the purpose of determining an increase or decrease over a period of time.
Vertical analysis expresses individual items in the financial statement in the percentage format of the base amount and is used in comparisons of both intracompany and intercompany. Vertical analysis reflects the comparative size of each category in the balance sheet along with the percentage change in the individual asset, liability, and stockholders’ equity items.
Ratio analysis articulates the relationship between selected items of financial statement data and is used in all three...

...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...

...FINANCIAL RATIO ANALYSIS REPORT
The fiscal year 2004 was a relatively soft year for Barnes & Noble, Incorporated (B&N). Blockbuster nonfiction books that came out during the year may not have come from the company, but business remained strong. This is due to the million of books already in the market, including phenomenal fiction hits "The Da Vinci Code," "The Five People You Meet in Heaven," and "The Rule of Four," and thousands of new releases during the year. This claim was supported by the stable and strong figures embodied in the financial statements.
The current ratio shows the company's ability to meet its currently maturing obligations, and serves as the primary test to measure one's liquidity position. B&N achieved a relatively strong liquidity position for the year 2004 at 1.48:1. Comparing it to the previous 2 years' figure of 1.52:1 and 1.53:1, the reduction is immaterial as the company still has enough ready resources to meet the current liabilities. Moreover, the current assets of discontinued operations increased the ratio of 2003 but were evened out by 2004. As a more stringent measure, the acid-test ratio of the company increased from .23:1 in 2003 to .46:1 in 2004. This vast improvement was attributable to the increased cash and receivables figures of US$253M and US$23M, respectively.
The company not only improved its liquidity position but also in efficient utilization of fast-moving...

...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...

...LIQUIDITY
Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Since a company that is consistently having trouble meeting its short-term debt is at a higher risk of bankruptcy, liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern.
Working Capital
Working capital is the amount by which the value of a company's current assets exceeds its current liabilities. Also called net working capital. Sometimes the term "working capital" is used as synonym for "current assets" but more frequently as "net working capital", i.e. the amount of current assets that is in excess of current liabilities. Working capital is frequently used to measure a firm's ability to meet current obligations. It measures how much in liquid assets a company has available to build its business.
Working capital is a common measure of a company's liquidity, efficiency, and overall health.
Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between an entity's short-term assets (inventories, accounts receivable, cash) and its short-term liabilities.
Working capital (net working capital) = Current Assets - Current Liabilities
2008
2009
2010
2011...

...
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)....

...marks |The student should show and explain the general and main information |
| | |required for analysis. |
|Problem 1.2 |28 marks |The student should analyze any four risks |
| | |that the company could face, and suggest how to cope with each |
|Problem 1.3 |52 marks |Computing the required financial ratios and giving a detailed analysis for|
| | |each ratio will be marked according to marks breakup in the questions. |
|Total |100 marks | |
Student Signature: ___________________________________
1- About the company
Nestle’ Group is the first company in the world in the production of food and beverage established in Switzerland. It has more than 8,500 food products sold in more than 100 countries in the world that caters humans from the age of an infant until old ages. The product sales are categorized as follows:
- 27% from drinks
- 26%...