Liquidity Liquidity is vital to the survival of a business for there to be sufficient liquid resources available to meet maturing obligations. Liquidity refers to the ease with which assets can be converted to cash in the normal course of business. The current ratio compares the ‘liquid’ assets of a business with the current liabilities. The higher the ratio‚ the more liquid the business is considered to be. Some people seem to suggest there is an ‘ideal’ current ratio (usually 2:1) for all
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Mindy’s Sections Profitability BJB intends to apply a six sigma approach to improving profitability in the innovative CD changers. Using such tools provided through this approach will lead to major cost reduction and quality improvements that will result in an increase in profitability. The approach will involve measuring capability of processes to produce services and products that remain free of defect. Experts at BJB will analyze standard deviation‚ short term performance data‚ and critical
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Liquidity Ratio’s. 1)CURRENT RATIO: CURRENT ASSETS CURRENT LIABILITIES Interpretation: The ideal ratio 2:1 . The liquidity position of the company is not satisfactory because it is not reached the ideal ratio 2:1 . Thecompany should increase the current assets and decrease thecurrent liabilities. Quick Ratio Current assets –inventories. Current liabilities Interpretation: the liquidity position of the company is not satisfactory because the ratio is decrease and not reached the
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Historical Background of JBPL2.Company’s Logo3.Company’s Vision4.Company’s Mission5.Introduction to the product- Soft Drinks6.About the Soft Drinks7.How Soft Drinks are made8.Soft Drinks produced by JBPL9.Punch lines10. Mile Stones11. Departments 7 History psiCo‚ Inco¢ po¢ £ t¡ dis a Fortune 500‚ American globalcorporation headquartered in Purchase‚ Harrison‚ New York‚ withinterests in the manufacturing‚ marketing and distribution of grain-based snack foods‚ beverages‚ and other products
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Financial Ratios: What They MeanIn assessing the significance of various financial data‚ managers often engage in ratio analysis‚ the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about a company’s activities‚ such as the ratio between the company’s current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios is the company’s financial statements that contain
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RATIO ANALYSIS (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
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Implementation 7. Verification 8. Administration Financial Statement Analysis – The Big Picture FS Analysis Involves careful selection of date from financial statements for the primary purpose of forecasting the financial health of the company. This is accomplished by examining trends in key financial data‚ comparing financial data across companies‚ and analyzing key financial ratios. Another important aspect of financial analysis is the comparison of actual financial conditions with expected financial
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Profitability ratio’s Liquidity ratio’s Introduction: The aim of this report is to conduct an analysis of the financial statements of J. Sainsbury plc and Tesco plc for the year ending 2013‚ comparing both companies by looking at the ratios calculated and looking at the importance of supplementing financial analysis with non-financial considerations. Tesco is Britain’s leading food retailer and the third largest
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Principles learnt (for example‚ number and understanding of principles referred to‚ their influence on the structure of this paper‚ number and correct citations of references‚ use of appropriate jargon) Application of principles. That is‚ the analysis and evaluation of the example problem based on the principles‚ including the final recommendations and their justification /4 /8 How well the example problem was described‚ including the extent and depth of information (including the data) about it that was accessed
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Provisions 1.92 1.67 1.56 1.45 Net Current Assets -0.88 -1.09 -0.63 0.09 Miscellaneous Expenses 0 0 0 0 Total Assets 3.27 3.61 4.61 5.88 Contingent Liabilities 1.3 1.3 1.31 1.31 Book Value (Rs) -23.01 -26.19 -25.62 -25.09 Comparison & Ratio Analysis of two FMCG (Fast-Moving Consumer Goods) Companies. 1. Tarai Foods Limited. 2. Tata Global Beverages. Tata Global Beverage (Rs. In Crores) Mar ’13 Mar ’12 Mar ’11 Mar ’10 Sources Of Funds Total Share Capital 61.84
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