Ratio Analysis Ratio analysis 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...
1183 Words | 6 Pages
period. However, investors need to recognize or to analyze the performance of the company properly before invest and it is not an easy job for an outsider to... understand. By doing the financial statement analysis, it will help the analyst to understand the performance of any company. The analysis of financial statement is a study of establishing meaningful relationship between various financial facts and figure given in financial statement. The basic financial statement included balance sheet and...
1949 Words | 7 Pages
* Contents Page 1. Introduction p.g 2 2. Analysis 2.1 Liquidity p.g 2 2.2 Profitability p.g. 2 2.3 Operating Efficiency p.g. 3... 2.4 Financial Stability p.g. 4 2.5 Analysing Shares as an investment p.g. 4 3. Conclusion p.g. 5 4. Recommendation p.g. 5 Introduction: This report provides investment advice based on a financial analysis of the food manufacturing companies, Worrnambool Cheese and Butter Factory Company Holdings Ltd. (WCB) and Select Harvests Ltd. (SHV)...
1279 Words | 4 Pages
C. OVERALL ANALYSIS OF ALL COMPANIES LIQUIDITY: CURRENT RATIO The current ratio is a financial... ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. From the table it shows that Ajinomoto (M) Berhad is the highest liquidity. The ratio is 5.38, followed by Padini Holding Berhad at 2.37 and 3rd British American Tobacco with ratio at 1.91. Therefore, we can see that Ajinomoto has enough resources to pay its debt over the next 12 months. LEVERAGE...
753 Words | 3 Pages
of financial statements | 2 | 4.1 Vertical analysis 4.2 Horizontal analysis | 23 | 4. Key ratios... analysis | 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. Ratio analysis - Liquidity and Profitability | 4. Ratio analysis – Efficiency and Investment | 5. FTSE 100 Index...
2002 Words | 7 Pages
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...
1878 Words | 4 Pages
Ratio Analysis Joyce Wallace-Butler HCS/571 February 11, 2013 Shawishi Haynes Ratios Analysis... The relationship between two variables is defined by ratios. When dividing the dollar amount of one item on a financial statement by the amount of another item on the financial statement a financial ratio is computed. Expressing the relationship of two variables for ease of comparison and interpretation of other information is the purpose of ratio analysis. A ratio analysis computation allows a look...
1131 Words | 4 Pages
Contents page Introduction……………………page1 Literature review………………page 2 Uses of ratios…………………...Page 2 Types of financial... ratios………Page 3 ➢ Profitability ratios……….Page 3 ➢ Efficiency Ratios………....Page 4 ➢ Liquidity Ratios………….Page 5 ➢ Investment Ratios………..Page 6 Limitations of ratios…………..Page 8 Conclusion……………………..Page 8 Introduction. The primary purpose of accounting is to convey information about the business to management, investors, shareholders, government...
1280 Words | 7 Pages
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...
988 Words | 3 Pages
sales)so some ratios might be void. Thanks :)! Good LuckRatio Analysis : Content* (1) analyse financial data; evaluate the... results and formulate conclusions* (2) prepare a budget and explain how it would be negotiated and monitored. * (3) produce a financial proposal and present a sound business case to secure the required financial resources. The figures can be fictitious. BibliographyPart 1) Technique used: Ratio AnalysisThe following table shows the ratios for the year 2005:Ratio* Profitability...
1137 Words | 4 Pages
and Home retail group PLC year end 28th February 2011. Contents Introduction 3 Kingfisher PLC 3 Home Retail Group 3 Analysis 4... Profitability Ratios 4 Liquidity Ratios 5 Gearing Ratios 5 Investment Ratios 6 Performance Factors 6 Kingfisher PLC 7 Home Retail Group 7 Appendix 8 Profitability Ratios 8 Liquidity Ratios 9 Gearing Ratios 9 Investment Ratios 10 Bibliography 11 Introduction The aims and objectives of this report are to compare the two companies, Kingfisher...
690 Words | 6 Pages
Ratio Analysis Cynthia Nelson HCS/571 September 2 2013 Joseph Rudd Ratio Analysis Financial... ratio analysis is the calculation and comparison of ratios pulled from the information in a company’s financial statements (Cleverly & Song, 2011). The financial report is used by organization to determine the financial health and stability of an organization. The ratios analysis data are found on the business Profit and Loss Statement and the balance sheet (Loth, 2013). These financial documents provide...
1222 Words | 4 Pages
RATIO ANALYSIS Ratios | 2007 | 2008 | 2009 | Current Ratio | 0.98 | 0.79 | 0.91 | Quick... Ratio | 0.66 | 0.41 | 0.46 | Working Capital | (43318926) | (480192556) | (199882615) | ------------------------------------------------- 2007 Current Ratio (C.R):- It shows the relationship between size of current assets and size of current liabilities. Current Ratio=Current Assets (C.A)/Current Liabilities (C.L) The standard of current ratio is (2/1) means...
1983 Words | 5 Pages
Ratio analysis – Shinepukur Ceramics Versus RAK Ceramics Current ratio Shinepukur: From 2009 to 2010,... current ratio of Shinepukur has increased by 0.24 because of increase in total current assets and decrease in total current liabilities. The increase in total current has occurred for increase in accounts-and-other-receivables, advances-deposits-and-prepayments and cash. Among these elements, the increase in advances-deposits-and-prepayments is significant (from 82182270 to 278773841). On...
1711 Words | 6 Pages
Zhiwei Wu Ratio Analysis of Google Company Ratio analysis is an important way to investigate a... corporation’s financial statement. It provides the detailed data that indicate a company’s financial activity, performance and how well the managers operate their company. It is very useful for the investors, shareholders and even the company’s managers when they want to understand the financial situation of the company and helps them to make the right investment decisions. Now I am trying to use the...
783 Words | 3 Pages
Managers Spring 2011-2012 Ratio and Financial Statement Analysis Benefits and Limitations.... Executive Summary This paper analyzes tools used in financial analysis such as ratios. Financial ratio analysis is a judicious way for different stakeholders to use for different goals. This paper demonstrates that financial ratio analysis is an important instrument to estimate resources and...
1527 Words | 6 Pages
Running head: ETHICS AND RATIO ANALYSIS PAPER Ethics and Ratio Analysis Paper... Ethics and Ratio Analysis Paper This will be an Ethics and Compliance paper on the organization Disney. We will obtain and include a copy of our selected organization’s annual report and SEC filings for the past two years. The objective of this paper will be to analyze the data in our selected organization’s annual reports and SEC filings. Our analysis will address the following:...
871 Words | 3 Pages
by Ms Groves) | 4. Performing Ratio analysis for SIGNature Ltd what you will learn in this UNIT The unit is divided into... two parts. In the first part, Assignment 1, you developed an understanding of the accounting processes necessary to provide accurate and relevant financial information. The second part of the unit (Assignments 2, 3 and 4) cover the practical aspect of carrying out those accounting activities. GRADING CRITERIA P5 – Perform ratio analysis to measure the profitability...
539 Words | 3 Pages
TEST 4 CONCLUSIONS ON FINANCIAL PERFORMANCE AND ANSWERS TO RATIO ANALYSIS 1) Financial ratios of... ABC plc from 2009 to 2011 : 2009 2010 2011 Gross margin - % 59.0 54.5 53.6 Net margin - % 21.0 18.5 14.6 ROCE - % 68 45.8 29.9 Return on Shareholder’s Funds - % 84 49.8 28.8 Earnings per share - £ 10.5 10.2 6.83 Dividends per share - £ 3 2.2 1 Current ratio 1.89 2.15 2.32 Quick ratio ( Acid test) 0.84 0.95 1.18 Stock turnover time - days 178 167.9 175.5 Debtor payment time - days 36.5 36.5 45.6...
881 Words | 4 Pages
PROJECT REPORT ON “RATIO ANALYSIS OF AXIS BANK” Submitted to Rashtrasant Tukdoji Maharaj Nagpur University Nagpur In the partial... fulfillment of Bachelor of Business Administration (BBA-III) (Finance) 2012-2013 Under the Guidance of Miss. Priyanka Tiwari Submitted by Sagar Borje Devkant Sharma Through Dhruv College of Commerce & Management, IC Square, Hingna Road, Nagpur. Badhti Ka Naam Zindagi PowerPoint Presentation: INTRODUCTION RATIO ANALYSIS:- Meaning of Ratio: - A ratio is simple arithmetical...
1760 Words | 6 Pages
Liquidity Ratios 2012 2011 Current Ratio 20,025/24,025=0.83 17,003/27,075=0.63 Quick Ratio... (7,138+10,744)/24,025=0.74 (6,252+9,259)/27,075=0.57 Activity Ratios Receivable Turnover 46,417/((10,744+9,259)/2)=4.6 45,884/((9,259+8,784)/2)=5.1 Inventory Turnover 31,546/((486+537)/2)=61.7 30,814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7,003/((139,576+151,220)/2)=4.8% 7,870/((151,220+156,985)/2)=5.1% Rate of Return on (7,003-56)/((78...
1239 Words | 4 Pages
Valuation Ratios Comparing all the companies we have here, we know the sector value is 6.15, and we can see that Costco is has the largest... number with 28.59, meaning that this company has big growth, and it is not risky. Along the other companies, we know that Target, Walmart, and Home Depot are doing well too. In this same case Nordstrom and Macy’s are not doing so well, they are a little below average, so we can conclude they are not growing that fast, and they are tending to become a little...
1287 Words | 4 Pages
Ratio Analysis Paper Ratios describe the various relationships among accounts in the balance sheet and... income statement. Financial ratios are important and helpful gauges of how an organization is functioning. An organization’s financial health, potential revenue, and even possible bankruptcy can be garnered from financial ratios. Information derived from financial statements is used to calculate most ratios and make projections. “Ratios help investors and lenders determine the risk associated...
1142 Words | 4 Pages
Ratio Analysis and Statement of Cash Flows Financial ratios are "just a convenient way to summarize large... quantities of financial data and to compare firms' performance" (Brealey & Myer & Marcus, 2003, p. 450). Financial ratios are very useful tools in order to determine the health of a company, help managers to make decision, and help to compare companies that belong to the same industry in order to know about their performance. Home Depot and Lowe's are two home improvement chains in the United...
1248 Words | 4 Pages
Ratio and Comparative analysis There are many ways to evaluate and compare financial statements. Although there are many... different ways and devices, no one device is more useful than another. According to "Financial Statement Analysis Primer" (n.d.), ”Every situation faced by the investment analyst is different, and the answers needed are often obtained only upon close examination of the interrelationships among all the data provided.”. Ratio analysis is a useful tool that is used to identify...
753 Words | 4 Pages
IMPORTANCE OF RATIO ANALYSIS Ratio analysis is a tool used by individuals to conduct a quantitative... analysis of information in a company's financial statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry, or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis. The ratio analysis is one of the most important tools of financial analysis. The various...
650 Words | 3 Pages
marks] Ratio 2014 Calculations Results 2013 Calculations Results 1. Return on Equity (2425 / 78018)x100 3.10% 3752/50319 7.46% 2.... Alternative Return on Assets (6985 / 216899)x100 3.22% (9150 / 198522)x100 4.61% 3. Alternative Profit Margin (6985 / 43014)x100 16.24% (9150 / 59860)x100 15.28% 4. Gross Margin (43014 – 24656) / 43014 42.68% (59860 – 38577) / 59860 35.55 5. Price-Earnings Ratio $0.95 / $0.084 11.31 times $0.98 / $0.068 14.41 times 6. Dividend Payout Ratio ($0...
757 Words | 4 Pages
MODERN CEMENT Ratio Analysis Activity Analysis |ST Activity Ratios... |2002 |2003 |2004 |2005 |2006 | |Inventory Turnover Ratio |0 |1.11 |0.097 |0.085 |0.696 | |Average No. Days Inventory In Stock |0 |328.9 |3742.72 |4301.69 |524.56 | Interpretations: Short Term Activity ratios calculate the operational efficiency regarding the utilization...
1766 Words | 6 Pages
Y2010 Y2011 Y2012 Closing Price per share ($) 25.94 37.29 50.71 Number of shares outstanding on the year-end fiscal date (millions) 742.90 742.60 744.80... Market Capitalization (million $) 19,270.83 27,691.55 37,768.81 From financial ratio analysis of fiscal year 2012, based on the company’s performance, its profitability is almost the same as it was last year. Its operating margin is slightly increased while its net profit margin is decreased a little from fiscal year 2011. Its net revenues...
1006 Words | 5 Pages
Date: [ 7/16/2012 ] Re: Ratio Analysis Memo CEO of Baderman Island Resort, In the evaluation of liquidity... ratios, the revenue from the income statement finds the Tenney at Night to be the most profitable and the Kayfe as the least profitable. The balance sheet states the Morgan Bistro has the best debt to asset ratio of 12.18% and the Kayfe with the highest debt to ratio of 26.49%. The balance sheet also states the Kayfe has the lowest times interest earned ratio of 5.91 and the Morgan Bistro...
889 Words | 4 Pages
Ratio decidendi and obiter dicta Learning objectives At the end of this module, you will be able to: * distinguish between... ratio decidendi and obiter dicta. * apply well-established rules to identify the ratio decidendi in a decision. This module is intended as a useful exercise in revision. If you are certain that you understand how to discover the ratio in an opinion, you should skim lightly over this material. What is the ratio decidendi? As you probably recall from your studies...
1924 Words | 5 Pages
a) Ratio analysis does several things,. The first thing is it allows the company to compare itself with other like companies. If... management feels things aren't going well, they can help pinpoint the problem through comparing their ratios with other companies. They may have several ratios that are comparable, but a couple which are way off. That might be where the problem is. It helps to evaluate financial statement. It helps to take proper steps toward financial problem. Like reduce...
1094 Words | 5 Pages
STRUCTURE – RATIO ANALYSIS | FINANCIAL MANAGEMENT | GROUP 10 | | MBA (BANKING AND FINANCE) | TERM II... | SUBMITTED BY: | DEEPTI SHARMA | DEVANSHU JUNEJA | ROLL NO. : | 067 | 068 | MOBILE NO. : | 07737801787 | 09602869642 | INDIVIDUAL CONTRIBUTION | Undertook entire calculation and analysis for Anuh Pharmacy and Lincoln Pharmacy in addition to part analysis of Dishman Pharmacy and the industry ratios | Undertook entire calculation and analysis for Vivimed Laboratories...
876 Words | 4 Pages
Ratio, Vertical, and Horizontal Analyses Checkpoint Ashlee Kasica XACC/280 March 2, 2013 Brandi Zuber Financial... statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information. There are a variety of tools used to evaluate significance of financial statement data. Three of the most commonly used tools are the ratio analysis, horizontal analysis, and vertical analysis (Weygandt, J. J., Kimmel...
554 Words | 3 Pages
Ratio Analysis Activity Ratios This ratios show how efficient Kenya Airways has been in managing... its working capital. Being a service industry this ratio is a key indicator possible area to reduce inefficiency in future. KQ Activity Ratios Years | 2012 | 2011 | 2010 | 2009 | 2008 | Average Collection Period (Debtors ratio) | 48.6 | 58.8 | 46.7 | 51.0 | 43.6 | Inventory Day (Inventory Conversion Period) | 9.19 | 8.70 | 8.17 | 7.94 | 8.52 | Creditor's Period | 50.93 | 65.31 | 75.27 | 67...
943 Words | 3 Pages
Professor Arvi Finance 311: 9:30-10:45 10/28/14 Financial Ratio Analysis: Honda Motor Company This is a financial... analysis of Honda Motor Company from the year 2011-2014. I will be reviewing and analyzing the company standardized balance sheet, standardized income statement, Ratio analysis, and their standings among competitors. I will define and compare the information in order to report my findings in an accurate way. When looking at the ratio analysis for the company the return on assets which measures...
1150 Words | 4 Pages
major categories of ratios, and what questions do they answer? * Liquidity: Can we make required payments as they fall due? * Asset... management: Do we have the right amount of assets for the level of sales? * Debt management: Do we have the right mix of debt and equity? * Profitability: Do sales prices exceed unit costs, and are sales high enough as reflected in NPM, ROE, and ROA? * Market value: Do investors like what they see as reflected in P/E and M/B ratios? 2. What is...
1400 Words | 4 Pages
Ratio Analysis A tool used to conduct a quantitative analysis of information in a company's financial... statements. Ratios are calculated from current year numbers and are then compared to previous years, other companies, the industry to judge the performance of the company. Financial performance based on may 2006 interim report Caffè Nero Group plc, the leading independent UK coffee house operator of 282stores, which has been voted the top rated brand by consumers for the last six consecutive...
1849 Words | 6 Pages
Session 15: Limitation of Ratio Analysis Learning Objective Explain to the participants on the limitation of... ratio analysis. Important Termss Creative accounting. Accounting Policies. Limitations of Ratios Accounting Information Different Accounting Policies The choices of accounting policies may distort inter company comparisons. Example IAS 16 allows valuation of assets to be based on either revalued amount or at depreciated historical cost. The business may opt not to revalue...
1147 Words | 4 Pages
LEARNING TEAM RATIO ANALYSIS - WEEK 5 1 Learning Team Ratio Analysis - Week 5 ACC/291 June 18,... 2013 LEARNING TEAM RATIO ANALYSIS - WEEK 5 2 TO FROM DATE RE : : : : CEO, Riordan Manufacturing Team A June 18, 2013 Organization Financial Analysis The purpose of this memorandum is to provide organization’s financial analysis by identifying our position and performance as well as to assess Riordan Manufacturing’s future financial performance. Our team has evaluated the three broad...
758 Words | 3 Pages
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...
1676 Words | 4 Pages
Accounting Date: Re: Ratio Analysis 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...
447 Words | 3 Pages
Subject: Financial Analysis and Accounting Topic: Ratio Analysis... from: 1) Consolidated Balance sheet as at March 31st, 2012 2) Consolidated Profit and Loss Statement for the year ended March 31st, 2012 Of Tata Motors Ltd. INTRODUCTION Tata Motors Limited is an Indian multinational...
1061 Words | 5 Pages
2008 Ratio Analysis Liquidity Ratio: Current Ratio= =... = Current Assets= Outstanding premium+ Advance, deposit and prepayments+ Fixed deposit with bank+ Cash in hand and at bank+ stamps in hand Current Assets = Tk 4,092,438 + Tk 22,542,466 + Tk 149,604,364 + Tk 422,560 + Tk 141,256 = Tk 176,80,3084 Current Liabilities = Liability and provisions =Tk 183,706,549 Underwriting Ratio: Loss Ratio = ...
285 Words | 3 Pages
A Financial Ratio Quarterly Trend Analysis of Honda Motor Co Ltd Stock Symbol: HMC Listed on the New York Stock... Exchange Prepared for: Deanne Butchey Department of Finance and Real Estate Florida International University Course: FIN 4606 By: xxxxxxxxxx Recommendations for Investors and Lenders Would you place a personal deposit of one million dollars or more in the publicly traded stock of this company? Honda is considered to be one of the best auto makers in the world;...
1822 Words | 6 Pages
Equity: 2 2-Return on Assets: 3 3-Equity Multiplier: 4 4-Asset Utilization Ratio: 5 5-Tax Ratio: 6 6-Efficiency... Ratio: 6 7-Expense Ratio: 7 8-Spread: 8 9-Burden: 9 1-Return on Equity: ROE = Net Income/Average Total Equity YEAR | 2006 | 2007 | 2008 | Net Income | 12700315 | 10084037 | 15614020 | Average Total Equity | 38949430.5 | 50120394.5 | 63172013.5 | | 0.032 | 0.020 | 0.024 | Analysis: This trend of return of asset is similar to return on equity. Its basic reason...
618 Words | 4 Pages
with various ratios to determine the future of the Amazon. Ratio Analysis The savings ratio... measures the relationship between total annual savings and total expense. The savings ratio is an important component of longevity, as high ratios may indicate excessive savings. In Amazon’s case, and any other business model, it would be beneficial to have more revenue than expenses. 2005 2006 Total Revenue 8,490 10,711.0 Total Expenses 1607 2067 Savings Ratio 4.28 4.18 ...
870 Words | 4 Pages
years. The report entails a financial analysis and summaries, which will give the executive board an understanding of how well the current... managing director is performing, and whether his contract should be renewed. Figures were obtained from comparative balance sheets and profit and loss statements from the relevant years as well as additional information that was forwarded by the board. This information enabled the development of percentage and ratio analysis (see appendices), which was then used...
1756 Words | 6 Pages
http://money.rediff.com/companies/Jet-Airways-India-Ltd/16600015/share-holding ANALYSIS OF WORKING CAPITAL POSITION OF JET AIRWAYS Sl. No. |... Particulars | Mar-08 | Mar-09 | Mar-10 | Mar-11 | Mar-12 | | | 12 mths | 12 mths | 12 mths | 12 mths | 12 mths | 1 | Inventory Turnover Ratio | 17.09 | 18.66 | 16.12 | 16.88 | 19.38 | 2 | Receivable Turnover Ratio | 7.08 | 14.09 | 12.04 | ...
738 Words | 3 Pages
Lowe’s Ratio Analysis In the period from 1997-2001 Lowe’s showed a steady increase in working capital. It went from being $2110... million in 1997 to $4920 million in 2001. This shows the company had good amount of liquid assets to conduct and build its business. Lowe’s fixed assets went from $3005 million in 1997 to $8653 million in 2001. Total capital is found by taking working capital and adding it to fixed assets. Lowe’s total capital increased from $5219 million in 1997 to $13736 million in 2001...
1024 Words | 3 Pages
organization’s balance sheet and income statement to calculate the following: Liquidity ratios Current ratio Acid-test, or... quick, ratio Receivables turnover Inventory turnover Profitability ratios Asset turnover Profit margin Return on assets Return on common stockholders’ equity Solvency ratios Debt to total assets Times interest earned Show your calculations for each ratio. Create a horizontal and vertical analysis for the balance sheet and the income statement. Write a 350- to 700-word...
409 Words | 5 Pages
Ratio Analysis to Determine Corporate Health; Exxon Mobile Corp & BP Petroleum Financial statement analysis... centers on one or more aspects of a company’s financial state and performance (Wild, 2011, p.565). According to Wild, there are four areas of inquiry that must be given emphasis to when completing a financial analysis (2011, p. 565). These four areas include: (1) liquidity, (2) solvency, (3) profitability, and (4) market prospects (Wild, 2011, pp. 565-582). A ratio analysis expresses a mathematical...
1260 Words | 3 Pages
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...
1284 Words | 6 Pages
and solvency ratios reveal some interesting points about Kudler Fine Food’s financial position. The liquidity ratios revealed... that during 2002 and 2003, Kudler was having no trouble paying short-term debt. However, the current and acid-test (quick) ratios showed that during 2003 Kudler had an excess amount of cash that they were not investing properly. These ratios also showed that Kudler was collecting receivables and selling average inventory very quickly. The profitability ratios revealed that...
1100 Words | 5 Pages
Ratio Analysis – Unit II 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 ratio 1.6 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...
519 Words | 3 Pages
plus 50 franchises operating in Asia, Europe and The Middle East. This report will analyse and outline the company’s profitability, liquidity, solvency and... investment potentials based on 15 ratios. All information is taken from the Next plc 2011 statement. Profitability and Performance The gross profit ratio indicates that Next plc was able to maintain their gross profit. It has decreased insignificantly by 0.05%. In 2011 the revenue has increased by roughly 47 Million, hence the sales of costs...
1704 Words | 5 Pages
Ratio Analysis Return on capital employed Basically, it measures business performance. This ratio is used to... calculate the return versus the money that is invested. Gross profit margin This ratio uses for measuring of profitability in selling, buying or producing goods before any other expenses are put into account. Therefore, any change in this figure can have an important result on the net profit margin of the year. Harrods’ gross profit margin can be divided into 2 parts which is...
1567 Words | 5 Pages
“In spite of its limitations ratio analysis is widely used as a means of evaluating the past performance and predicting the... future successes or failures of business organisations.” Ratio analysis isn't just picking different numbers from the balance sheet, income statement, and cash flow statement and comparing them. Ratios compare facts against previous years, the industry, other companies, or even the economy in general. Ratios look at the relationships between values and relate them to find...
1508 Words | 4 Pages
liabilities demonstrate sustained increases in operating assets and decreases in operating liabilities. Stock repurchase has been more than doubled since... 2004. This could possibly be because of undervaluation issues or an effort to boost Microsoft's P/E ratio. The large net decrease in cash in 2005 can be entirely attributed to the abnormal jump in common stock cash dividends that year. In '05, Microsoft paid 1400% more in dividends than the yearly average. There is no other significant decrease in any...
882 Words | 3 Pages
there was still an increase in income after taxation from RM81.27 million in year 2008 to RM81.49 million in year 2009.) Nevertheless, the good phenomenon... of Starhill REIT blew up in year 2010 when the ROSF fell dramatically to 2.22%. The 2010 ratio was very poor as deposit in bank account* would yield a better return than this. This tragic outcome mainly caused by a loss on disposal of investment properties amounted to RM39.65 million which recognized in the year 2010, and hence, boosted up the...
2068 Words | 6 Pages