CHAPTER 9 Ratio Analysis Introduction The analysis of the financial statements and interpretations of financial results of a particular period of operations with the help of ’ratio’ is termed as "ratio analysis." Ratio analysis used to determine the financial soundness of a business concern. Alexander Wall designed a system of ratio analysis and presented it in useful form in the year 1909. Meaning and Definition The term ’ratio’ refers to the mathematical relationship between any two inter-related
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The Witch of Colchis As she was ferried ’cross the River Styx‚ what thoughts too harrowing to contemplate came coursing madly through her consciousness? Her children whom she killed with her own hands as vengeance for their father’s faithlessness‚ ensuring they would not be reared as slaves? The hapless rival she engulfed in flames— a marriage of political convenience kindling blind rapacious jealousy? Her husband’s cousins she enticed to cast a heinous spell of mutilation‚ thinking they’d
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[Session1]NY times case Questions Why are newspapers in trouble? What is the goal of the Times in creating the Paywall? The main factor affecting the newspapers negatively today is the internet‚ which completely changes the way the news and other content provided by the newspaper (advertisements‚ opinions and columns‚ TV listings‚ stock listings‚ sports scores‚ etc.) are viewed and read by the consumer. The newspaper brings all these elements together in one place and each of them secures a
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Ratio Analysis Memo July 9‚ 2012 Memo To: From: Date: July 9‚ 2012 RE: Kudler Fine Foods ratio analysis One of the things that we will be going over is some of the ratios for Kudler Fine Foods through Liquidity‚ Profitability‚ and solvency ratios. We will look into some of the finding that were found through these ratios and discuss them. One of the things that we found was where Kudler Fine Foods’ position is with these ratios. The first area that we look at is profitability
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Session 2 Case: Laura Ashley Holdings plc: That Battle for Survival Study Questions: 1. Assess Laura Ashley’s recent performance. How serious is the company’s present predicament? 2. Identify reasons for poor and deteriorating financial performance. 3. What strategy recommendations would you offer to Mr. Cheong that would best serve the interests of Laura Ashley’s shareholders? Session 3 Case: Global Wine War 2009: New World versus Old Study
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Current Ratio 2012 (‘000) 2013 (‘000) (Current Asset)/(Current Liabilities) (Current Asset )/( Current Liabilities) = (RM 308‚510)/RM161‚786 = RM337‚728/(RM 222‚768) = 1.91 : 1 = 1.52 : 1 The table above shows that Dutch Lady has a decreased
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Current Ratio Interpretation From the calculation of the current ratio it is evident that the company’s current ratio for the year 2010 is 1.30:1 ‚2011 is 1.80:1‚ 2012 is 1.54:1 and 2013 is a 1‚53:1‚ that is company’s current assets in year 2013 was Rs. 1.53 for every 1Re of current liability‚ while in the year 2012 the current asset was Rs 1.54 Re of its current liability‚ while in the year 2011 the current assets was Rs 1.80 Re of its current liability‚ and while in the year 2010 the
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What do biologists do? What do biologists do? Biologists study many things. The three main things that they do are that they hypothesis‚ they make observations‚ inferences and they record data. Without hypothesizing‚ biologists can not experiment or create scientific laws. Being able to hypothesis is very important in the world of science. Some evidence that I have‚ to prove that biologists hypothesis‚ are the activities we did in page 17 and in page 28. In page 17‚ in our notebook‚ we
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2.0 FINANCIAL RATIOS 2 Liquidity Ratios Liquidity ratios measure a business ’ capacity to pay its debts as they come due. It also measures the cooperative’s ability to meet short-term obligations. Liquidity refers to the solvency of the firm’s overall financial position – the ease with which it can pay its bills. Because a common precursor to financial distress and bankruptcy is low or declining liquidity‚ these ratios can provide early signs of cash flow problems and impending
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Case: IRON ORE COMPANY OF ONTARIO ASSIGNMENT: 1. Where are the bottlenecks in IOCO’s operation? 2. How should IOCO deploy its shovels? 3. Should IOCO stockpile ore? When? How much? Case: Dynatrol Corporation: Andover Assembly Division ASSIGNMENT: 1. What are the most urgent problems confronting Jan Havel at the Andover Assembly Plant? 2. What sequence of actions would you recommend to address them? 3. How difficult will it be to "sell" your actions to Murphy
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