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
METHODIST UNIVERSITY COLLEGE GHANA FACULTY OF BUSINESS ADMINISTRATION LEVEL 300 FINANCIAL ACCOUNTING IV RATIO... ANALYSIS OF FML UN-AUDITED ACCOUNTS OF 2010 AND 2011 Name Index No Programme 1. Osumanu-Sulemana Amidu BBAA/ET/123001 Accounting 2. Emmanuel Addae BBAA/ET/ 117726 Accounting 3. Benedicta Mawunu ...
984 Words | 8 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
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 in the world. Tesco opened in 1929. After...
897 Words | 7 Pages
Ratio Analysis 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...
821 Words | 3 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
Ratio Analysis: 2009 | 2010 | 0.53 | 0.51 | Current Ratio: Analysis:... 2:1 is the benchmark of current ratio. Here in 2007 current asset is 0.53 against 1 current liability. In every year the company is unable to increase their current ration. Because the current ratio in 2010 decreases to 0.51. The company has a small amount of current asset for each amount of current liability in every year and its improvement was not that much remarkable. Though the company never crossed...
920 Words | 4 Pages
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...
683 Words | 3 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 Ratio analysis is used to evaluate relationships among financial statement items.... The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity, profitability, and solvency. Liquidity ratios Liquidity ratios measure the ability of a company to repay its short‐term debts and meet unexpected cash needs. Current ratio. The current...
1520 Words | 12 Pages
* Financial Analysis No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah... wants to become a premier banking institution and to satisfy its customers, it itself needs to become a profitable organization, that not only has growth in profits, increase its assets but also provide its shareholders with the maximum return so that they are also satisfied. * Operational Result Profit Comparison for 2010 & 2011 Description |...
850 Words | 3 Pages
University of Phoenix Material Patton-Fuller Ratio Analysis There is a _$_1 million__ difference between the “unaudited”... and the “audited” financial reports. The subsequent audit adjustment __increase bad debt_____expense by $__1 milion___ and changed the operating results for 2009 from _a gain to a loss_, as compared to the unaudited financial statements. This audit adjustment reduced _the profitability_by 1 mil_and weakens the __creditability_ of the CEO’s report to the Board in December...
567 Words | 3 Pages
Ratio Analysis Ratio analysis is used to evaluate relationships among financial statement items.... The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity, profitability, and solvency. Liquidity Ratios Liquidity ratios measure the ability of a company to repay its short‐term debts and meet unexpected cash needs. Current ratio The current...
1020 Words | 4 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
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
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
causes unnecessary overtime and results in over all increased labor cost, reduced efficiency of the operations, as well as in low employee morale. It hinders... proper planning of production productivity. With the massive investments, the capital lab our ratio goes up considerably, absenteeism among workers causes serious operating problems and dislocation of work that heavily affects productivity. In fact its consequences are alarming. The problem needs to be dealt with effectively by the management. Attention...
1672 Words | 6 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
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
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
Current Ratio: The current ratio gauges how capable a business is in paying current liabilities by using current assets only.... Current ratio is also called the working capital ratio. A general rule of thumb for the current ratio is 2 to 1. However, an industry average may be a better standard than this rule of thumb. So, according to the information that we got, in 2007 Beximco Pharmaceutical’s current ratio was 1.80 which declined to 1.10 in 2008 and ultimately in 2009 it boosted up to 2.97, that...
1602 Words | 6 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
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
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
Earnings Ratios Return on Assets (%) 1. 36% 1. 71% 2. 24% 1. 59% 1. 38% 1. 48% 1. 60% Return on Deposits (%) 1. 61% 2. 06% 2. 83% 2. 10%... 1. 72% 1. 88% 15. 50% Return on Equity (%) 21. 32% 27. 46% 31. 71% 19. 81% 19. 00% 14. 09% 1. 04% Assets Quality Ratios NPL to Advances 13. 95% 8. 28% 6. 57% 7. 35% 7. 50% 10. 80% 12. 90% Provisions to NPLs 2. 17% 7. 53% 12. 14% 24. 96% 16. 20% 24. 67% 9. 81% Non Performing Loans (Rs. in bn) 20. 103 16. 960 16. 255 22. 012 27. 839 39. 101 49...
530 Words | 4 Pages
Financial Ratio Analysis Paper Financial Ratio Analysis (Fiscal year of 2009 and 2010)... Liquidity of the agency Current ratios=current assets (cash+accounts receivable+inventory)current liability Current ratios (2009) = (9690+25391) / (6027+8399) = 2.43 Current ratios (2010) = (15799+10123+60333+32119) / (24813+5459) = 3.91 The two ratios show that in the fiscal year of 2009, for every dollar the agency owed, it had 2.43 dollars to pay. In the fiscal year of 2010, the liquidity got...
1949 Words | 6 Pages
III ------------------------------------------------- Ratio Analysis Report... ------------------------------------------------- Student: Kevin Galea 205891 (M) ------------------------------------------------- Lecturer: Dr. Emanuel Camilleri Introduction The purpose of the following report is to aid Build-It Ltd in planning the direction that the company may want to go over the next few years. The report entails a financial analysis which will give the directors an understanding of how well...
1997 Words | 6 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
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 ($0...
757 Words | 4 Pages
Ratio and Comparative analysis There are many ways to evaluate and compare financial statements. Although there are many... different ways and devices, no one device is more useful than another. According to "Financial Statement Analysis Primer" (n.d.), ”Every situation faced by the investment analyst is different, and the answers needed are often obtained only upon close examination of the interrelationships among all the data provided.”. Ratio analysis is a useful tool that is used to identify...
753 Words | 4 Pages
Y2010 Y2011 Y2012 Closing Price per share ($) 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
been reviewed, but not audited. - The 2002 annual report contains detailed breakdowns of the company’s operations. - Amec’s operation cycle... results in cash outflows up to mid year and major cash inflows in the second semester, hence, ratio analysis is more representative at year end. 2. Financial reporting. 2.1 Presentation and Contents. In general terms the presentation standards are adequate. When studying the annual report, we find two distinguished sections. The first section...
1642 Words | 6 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
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
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
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 ANALYSIS 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, ratio analysis 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...
1385 Words | 12 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
LIQUIDITY RATIOS Liquidity ratios • Liquidity ratios are used to determine a ... company’s ability to meet its short‐term debt obligations. • liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern. • Any type of ratio analysis should be looked at within the correct context. For instance, investors should always look at a company’s ratios against those of its competitors, its sector and its industry and over a period of several years...
552 Words | 3 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
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
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
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
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
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
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
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