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Ratio Analysis
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 BBAA/ET/121614 Accounting
4. Daniel Kwesi Derry 1011003571 Accounting

SUPERVISOR: William Kofi Offei-Mensah (OFF-MENS)
JUNE, 2014
From: Group 1 Members
To: William Kofi Offei-Mensah (Off-Mens)
Subject: Evaluation Of Fan Milk Ghana Ltd’s Un-Audited Financial Statement for the Years Ended, 31st December, 2010 and 2011.
Date::2nd June, 2012
==========================================================================
INTRODUCTION
The objective of this report is to present to you the evaluation of financial performance of Fan Milk Ghana Ltd for the years ended 31 December 2010 and 2011. The data used in this report is the un-audited financial report of Fan Milk Ghana Ltd for 2011 financial report.
Please, find the attached “appendix” for the quantitative analysis of the figures used in this report.

1. COMMENTS ON THE RATIO’S
1.0 LIQUIDITY RATIO: This measures the firm’s ability to pay its bills or debt over the short-run without undue stress.

Current Ratio: this expresses the relationship between current asset and current liabilities. That is, how an economic entity can settle its short-term obligations with it available short-term resources in a given period. Fan Milk Ghana Ltd’s (FML) current ratio fell from 2.68:1 in 2010 to 2.52:1 in 2011. This appears as a result of increase in assets or liabilities.

Quick Ratio: This measures the ability of the firm to pay
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