information contained in your selected 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
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PROFITABILITY RATIOS RETURN ON INVESTMENT (ROI): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence‚ the return on capital employed is used as a measure of success of a business in realizing this objective. Return on Investment establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability
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Acct Info for Decision Making Project on Costco Wholesale Corp. Costco Group 2012 History & Background Founded by James (Jim) Sinegl and Jeffrey H. Brotman‚ Costco opened its first warehouse in Seattle‚ Washington‚ on September 15‚ 1983. Sinegal had started in wholesale distribution by working forSol Price at both FedMart and Price Club. Brotman‚ an attorney from an old Seattle retailing family‚ had also been involved in retail distribution from an early age. Wal-Mart founder Sam Walton had
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STUDY RATIO ANALYSIS ANALYSIS OF FINANCIAL STATEMENTS The traditional financial statements that comprise of the balance sheet and profit and loss account do not give enough information related to financial operations of the company. These financial statements prepared as per the statutory requirement of law need to be analyzed in order to evaluate the past performance of the company and the future prospects. The most widely used tool is Ratio Analysis. DEFINITION OF RATIO A way of expressing
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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 other item for ’05 on the cash flow statement. Since ’04‚ Microsoft has steadily increased acquisition of other companies‚ which is typical of companies as large as Microsoft. This
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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
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Question (a) Company’s Background History Padini Holdings Berhad began as a backend operation in Malaysia’s clothing and accessories industry. It has entered the new millennium as a major force in Malaysia’s multibillion textiles and garments industry. It is now a brand leader involved in the manufacturing‚ distribution and retail of its own fashion labels through 190 freestanding stores and in-house outlets. Besides operating in Malaysia‚ they have also carried the Made-in-Malaysia stamp
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The companies’ financial ratios can be compared with the ratios of other equivalent companies between business sectors at one point of time. These comparisons provide explanations on the relative financial status and performance of the company compared to the relative performance of its competitors. Comparisons are usually made with other companies in the same business sector and the benchmark is assumed to be the suitable value for a company. The assumption here is for the companies in the same
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concerned about liquidity and safety. In fact these three namely liquidity‚ profitability and safety are the main objectives of a monetary policy. Banks have to earn profits because if they don’t‚ they would not work as all the shareholders would sell off the shares if proper dividends are not earned. Hence they have to earn profits for their shareholders and at the same time satisfy the withdrawal needs of its customers. The main problem here comes is sticking the balance between liquidity and profitability
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rice crackers‚ cheese snacks‚ cuttlefish flavoured snacks‚ and onion rings. The company exported those products to many Middle East countries and European countries. RATIO ANALYSIS LIQUID RATIO Liquidity means that the amount of money available to the company to pay off its short term debts. The higher liquidity ratio is
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