"Financial Ratios" Essays and Research Papers

Financial Ratios

FINANCIAL RATIOS Financial ratios are indicators of a company’s performance as discernable from the company’s Balance Sheet and income Statement. We will discuss some of the simple ratios of a company and talk about their significance. Liquidity Ratios: Show the company’s ability to pay of its current liabilities from its current assets. 1. Current Ratio Current assets should be significantly higher than current liabilities so that the current ratio is higher than 2:1. 2. Quick Ratio...

Premium Asset, Balance sheet, Financial ratio 616  Words | 2  Pages

Open Document

financial ratios

FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company's pricing strategy but it does give a good indication of financial health. Without an adequate gross margin, a company will be unable to pay its operating and other expenses and build for the future. In general, a company's gross profit margin should be stable...

Premium Accounts receivable, Asset, Balance sheet 1144  Words | 4  Pages

Open Document

Financial Ratio & Financial Statement

QUESTION 1 i. Current Ratio = Current Assets/Current Liability = $ 14,651,000/$ 19,639,000 = 0.750 ii. Quick Ratio = (Current Assets – Inventory) / Current Liability = ($ 14,651,000 – $ 6,136,000) / $ 19,539,000 = 0.436 iii. Total Assets Turnover = Sales/Total Assets = $ 167,310,000/$ 108,615,000 = 1.540 iv. Inventory Turnover = COGS/Inventory = $ 117,910,000/$ 6,136,000 = 19.216 v. Receivable Turnover = Sales/Account Receivables = $ 167,310,000/$ 5,473...

Premium Accounts receivable, Asset, Balance sheet 1501  Words | 7  Pages

Open Document

Financial Ratios

Interpreting Financial Results FIN/571 July 22, 2013 Interpreting Financial Results Liquidity: Current Ratio Parrino, Kidwell, & Bates (2012) detail the current ratio as current assets divided by liabilities. The current ratio identifies a firm’s potential to pay short-term liabilities; higher liquidity is a good sign for potential creditors (Parrino et al., 2012). At the same time, however, the current ratio should not greatly exceed benchmarks of other competitors (Parrino et al., 2012)...

Premium American Airlines, Balance sheet, Earnings before interest and taxes 655  Words | 3  Pages

Open Document

Itv Plc Financial Ratios

important financial ratios to give a pitcure of its financial position in the market comparing by comaparing it to its industry average. From Annual report of year 2011 of ITV Plc . Financial Performance Analysis: This section aims to reflect the financial performance of the ITV Plc by analysing a range of financial ratios from the last two years. A comprehensive evaluation is provided of the significant ratios and later it is compared with its peers and sector ratios. Liquidity Ratios Basically...

Premium Asset, Balance sheet, Finance 1623  Words | 5  Pages

Open Document

Honda Financial Ratios Analysis

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;...

Premium Asset, Balance sheet, Financial ratio 1822  Words | 6  Pages

Open Document

Ratio Analysis in Financial Accounting

accounting4management.com NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc. Obviously, higher the ratio the better is the profitability. But while interpreting the ratio it should be kept in...

Premium Accounts receivable, Asset, Balance sheet 1555  Words | 5  Pages

Open Document

Financial Ratios Comparison

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...

Premium Asset, Balance sheet, Financial ratio 1893  Words | 6  Pages

Open Document

Procter & Gamble Financial Ratios

The financial statements of proctor & Gamble can be found in the annual report. But what these numbers really mean can be found by the use of ratios. In order to give you a more in depth analysis of Proctor & Gamble’s financial position we used several ratios. Activity ratios. These ratios measure whether a company is able to convert account within their balance sheet into cash. Showing us how fast a company can generate into cash and thus sales and ultimately more revenue. We used four ratios...

Premium Accounts receivable, Asset, Balance sheet 1648  Words | 6  Pages

Open Document

Financial Ratio and Costco

rival have a better strategy than the others? Does one rival have a somewhat weaker strategy than the other two? 3. Which of the three warehouse club rivals has been the strongest financial performer in recent years? Support your answer with calculations based on the data in case Exhibits 2, 6, and 7. Use the financial ratios presented in Table 4.1 of Chapter 4 to help you with the needed number crunching. 4. Does the data in case Exhibit 5 indicate that Costco’s expansion outside North America (the...

Premium Asset turnover, BJ's Wholesale Club, Costco 1614  Words | 5  Pages

Open Document

Interpreting Financial Ratios

NAME ACC230 Checkpoint # 2 Interpreting Financial Ratios Date From what I have read and gathered; over the past (3) three years, Luna Lighting financials does have the possibility to expand within the next few years. The companies average collection period on money has decreased in the last three years and is better than industry average. The inventory turnover rate has maintained at steady level and...

Premium Asset turnover, Balance sheet, Corporate finance 373  Words | 4  Pages

Open Document

Financial Ratios and Division Managers

the firm’s 2009 financial ratios, and then fill in the preceding table. |Ratio |Actual 2007 |Actual 2008 |Actual |Industry average | | | | |2009 |2009 | |Current ratio |1.7 |1.8 |2.48 |1.5 | |Quick ratio ...

Premium Asset, Balance sheet, Financial ratio 2013  Words | 7  Pages

Open Document

The Industry Averages And Financial Ratios 5

The Industry Averages and Financial Ratios Cassandra Brown, Diana Smiley, Patricia Ramirez FIN/370 - FINANCE FOR BUSINESS 11/23/14 Michael Rodriguez The Industry Averages and Financial Ratios In today’s market business really look at what the others in their competitive market are doing to compare how they are doing as a business or corporation. They do this by evaluating the industry averages and the financial ratios. When corporations and financial advisors look at the industry...

Premium Accounts payable, Asset, Balance sheet 782  Words | 5  Pages

Open Document

Ratio

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...

Premium Asset, Balance sheet, Earnings before interest and taxes 1284  Words | 6  Pages

Open Document

Ratio

Ratio analysis Debt ratio Debt ratio (2006-2007) = Total liabilities / Total assets = 10,170/12,064 = 0.84 Debt ratio (2007-2008) = 9,210/11,769 = Debt ratio (2008-2009) = 10,003/11,229 = Debt ratio (2009-2010) = 11,043/12,537 = Current ratio Current ratio (2006-2007) = Current assets / Current liabilities = 3,424/4,790 = 0.71 Current ratio (2007-2008) = 2,164/4,498 = Current ratio (2008-2009) = 1,326/5,389 = Current ratio (2009-2010) = 2,697/6,085 = Return on sales (ROS) Return on Sales...

Premium Asset, Balance sheet, Financial ratio 561  Words | 3  Pages

Open Document

Financial Ratio Analysis Reoprt

Toyota Motor Corporation. The Group's principal activities are to manufacture and sell automobiles and provide financial services. The Group operates through three segments: Automotive, Financial Services and Other. Automotive segment designs, manufactures, assembles and sells passenger cars, recreational and sport-utility vehicles, minivans and trucks and related parts and accessories. Financial services segment provides financing to dealers and their customers for the purchase or lease of Toyota vehicles...

Premium Financial ratio, Financial ratios, Honda 1738  Words | 6  Pages

Open Document

Ratio: Balance Sheet and Financial Results

UVA-C-2332 Rev. Oct. 17, 2012 RATIOS TELL A STORY—2011 Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales...

Premium Asset, Balance sheet, Financial ratio 863  Words | 5  Pages

Open Document

Financial Ratios and Net Income

positive answer indicates late payments, while a negative answer indicates early payments. 4. Pie Corp's sales last year were $315,000, and its year-end total assets were $355,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. The firm's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average...

Premium Asset turnover, Balance sheet, Financial ratio 789  Words | 3  Pages

Open Document

Ratios

Year 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...

Premium Asset, Balance sheet, Expense 1997  Words | 6  Pages

Open Document

Spartech Corporation: a Financial Ratio Analysis

in manufacturing facilities located throughout the United States, Canada, Mexico and Europe. The company's financial ratios for 2004, 2005, and 2006 were analyzed and indicates that the company is not without problems. The current ratio for the company has been on a steady decline over the last three years. From the standpoint of a creditor, the reduction of the company's current ratio is not good as the company's short term liabilities is outgrowing its current assets. However, when you look...

Premium Asset, Balance sheet, Corporate finance 1077  Words | 3  Pages

Open Document

Financial Ratio Analysis Report of Ford Motor Company

there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company's strengths and weaknesses, evaluate its financial position, and shows potential risks. As with any other form of analysis, financial ratios aren't definitive and their results shouldn't be viewed as the only possibilities. However, when used in conjuncture with various other business evaluation processes, financial ratios are invaluable. By examining...

Premium Automotive industry, Financial ratio, Financial ratios 1940  Words | 5  Pages

Open Document

Financial Ratio Analysis: Daimler Group and Bmw Group

Group 2012 Financial Analysis: A comparison between Daimler Group and BMW Group Abstract In this report, we calculate and compare the financial performance between Daimler Group and BMW Group in two financial years 2010-2011. The objective is to analyse the financial performance of both groups and identify our company’s position, thus suggesting the potential areas for improvement for our company. I) Introduction In this report, we analyse and compare the financial performance between...

Premium Asset, Corporate finance, Financial ratio 2076  Words | 6  Pages

Open Document

Financial Ratio Analysis: Pakistan State Oil

FINANCIAL RATIO ANALYSIS: PAKISTAN STATE OIL Introduction: Financial ratios for PSO for last 3 years are provided below. The company represents current market share of 78.2% in the black oil market and 54.3% share in the white oil market with net sales of Rs1.02 billion in 2012, Rs820 million billion in 2011 and Rs742 million in 2010. Ratio Analysis: PAKISTAN STATE OIL | |2012 |2011 |2010 ...

Premium Asset, Balance sheet, Financial ratio 597  Words | 3  Pages

Open Document

Ratio

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...

Premium Asset, Balance sheet, Financial ratio 554  Words | 3  Pages

Open Document

Ratios

Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets) Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share...

Premium Asset, Balance sheet, Dividend yield 336  Words | 3  Pages

Open Document

Liquidity Ratios and Activity Ratios

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...

Premium Asset, Asset turnover, Balance sheet 2112  Words | 6  Pages

Open Document

Ratio Analysis

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...

Premium Asset, Balance sheet, Corporate finance 1183  Words | 6  Pages

Open Document

Financial Ratios Are Useful Indicators Of How A Company Can Show Their Performance Measures And Financial Situation

Financial Ratios are useful indicators of how a company can show their performance measures and financial situation. These ratios are calculated by the information that is obtained from the financial statements of the business. These ratios can help analyze trends and compare the business financials to those of other like companies. Sometimes ratio analysis can predict future bankruptcy. These ratios can be shown as the following: Liquidity, financial leverage, asset turnover , profitability...

Premium Asset, Balance sheet, Current asset 420  Words | 3  Pages

Open Document

Current Ratio

1) Current Ratio The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. 2) Quick Ratio An indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories...

Premium Asset, Balance sheet, Financial ratio 834  Words | 3  Pages

Open Document

Example of a Financial Ratio Analysis for a Trading Company

Page 1 Trading Company AFS FINANCIAL ANALYSIS OF THE TRADING COMPANY (PTY) LTD Holistic over view of operating performance (Using a traffic light system to quickly highlight performance) 1. RONA - Return on Net Operating Assets 2010 18.4% 2009 21.2% Net Operating profit (Income Statement) Net Operating Assets (Balance Sheet) 135 735 84 396 Note: Net Operating Assets - take total net Assets, and add back cash, overdraft balances, tax and dividends. These are financing factors,...

Premium Asset, Balance sheet, Financial ratio 1170  Words | 6  Pages

Open Document

Financial ratios analysis

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...

Premium Debt, Financial ratio, Financial ratios 757  Words | 4  Pages

Open Document

Profitability Ratios

Profitability Ratios Profitability Ratios attempt to measure the firm's success in generating income. These ratios reflect the combined effects of the firm's asset and debt management. Profit Margin The Profit Margin indicates the dollars in income that the firm earns on each dollar of sales. This ratio is calculated by dividing Net Income by Sales. Return on Assets (ROA) and Return on Equity (ROE) The Return on Assets Ratio indicates the dollars in income earned by the firm on its assets...

Premium Asset, Balance sheet, Current asset 1601  Words | 6  Pages

Open Document

Financial Ratio Analysis Report

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...

Premium Asset, Balance sheet, Financial ratio 1676  Words | 4  Pages

Open Document

Calculation and Ineterpretation of Financial Ratio of Bp and Shell Between 2009 to 2011

PETROLEUM (BP) RELEVANT ACCOUNTING RATIOS * LIQUIDITY * EFFICIENCY * PROFITABILITY HORIZONTAL TECHNIQUE - (It provides one with a way to compare your numbers from one period to the next, using financial statements from at least two distinct periods.) LIQUIDITY RATIOS * Current Ratios: (Difference between current assets and current liabilities) * Acid – Test Ratios: (Current asset less inventories to current liabilities) CURRENT RATIO Current Ratio = Current Assets /Current Liabilities...

Premium Accounts receivable, Asset, Balance sheet 657  Words | 4  Pages

Open Document

Answer to test 4 data on financial ratio analysis and conclusions 2012 1

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...

Premium Debt, Dividend, Dividend yield 881  Words | 4  Pages

Open Document

Importance of Financial Ratios

Important Financial Ratios in Investment Analysis Introduction Financial ratios are derived ratio numbers from the financial statements of a company. Depending on the task, financial ratios can serve to various purposes in accounting, legal, M&A uses, etc. For investors, financial ratios are very powerful in two ways: indentifying the company’s unique competitiveness and evaluating its stock price level. The first part helps investor find a truly valuable company and the second part helps investor...

Premium Asset, Balance sheet, Debt 2244  Words | 6  Pages

Open Document

Toyota Ratio

This comparison suggests that Toyota has been increasingly effective on utilizing its total assets, for instances, its total investment. Financial leverage percentage= ROE-ROA 2011 2010 2009 Financial leverage percentage 1.69% 2.48% 1.22% In year 2009, the company have the lowest leverage ratio among the three years, thus it suggests that it utilizes relatively lowest debt in its capital structure this year, which indeed means Toyota...

Premium Asset, Balance sheet, Financial ratio 1065  Words | 4  Pages

Open Document

Disney's Ratio

International Accounting 1. What industry is Disney in ? 2. Does Disney make money ? (IS) 3. Trend of 3 years 4. Makes Money ? YES : How much ? (IS) – Gross Margin and Net Income Margin – Ratio Analysis 5. Liquidity (Cashflow/BS) 6. How is Disney doing compare to competitors ? 7. ROE and ROA (IS/BS) 8. Future Prospects 9. Pricing Strategy 10. Marketing Strategy I. Return on Investment Return on Equity (ROE): ...

Premium Asset, Balance sheet, Cash flow 382  Words | 6  Pages

Open Document

financial statement

Analysis of Financial Statements After reading this chapter, students should be able to: Explain why ratio analysis is usually the first step in the analysis of a company’s financial statements. List the five groups of ratios, specify which ratios belong in each group, and explain what information each group gives us about the firm’s financial position. State what trend analysis is, and why it is important. Describe how the Du Pont chart is used, and how it may be modified to include...

Premium Balance sheet, Cash flow, Financial ratio 1525  Words | 7  Pages

Open Document

Cango Financial

CanGo Financial Analysis Report The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas...

Premium Asset, Balance sheet, Debt 1115  Words | 3  Pages

Open Document

financial analysis

 Samsung and LG: Financial Analysis \ SAMSUNG AND LG: FINANCIAL ANALYSIS Samsun and LG’s are among the leading companies in South Korea. Samsung is a multinational corporation with several subsidiaries and associated business, mainly under the brand name Samsung. LG is also an international electronics organization that operates through its four divisions: Home Appliances, Mobile Communications, Air Conditioning and Energy...

Premium Asset, Balance sheet, Financial ratio 1086  Words | 3  Pages

Open Document

Ratio Analysis

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...

Premium Asset, Balance sheet, Financial ratio 683  Words | 3  Pages

Open Document

Financial analysis

Financial analysis Lynn University Analysis of financial position is the assessment of stability, viability, and profitability of a project or business. It is performed using ratios and used in making decisions by top management. The information from the analysis helps the management make decisions regarding investment, lending, and issuance of stocks, purchases, continuation, and discontinuation. The goals of performing financial analysis are to asses profitability, solvency, liquidity, and stability...

Premium Asset, Cost of capital, Finance 1281  Words | 3  Pages

Open Document

FIN 370 Week 2 Industry Averages and Financial Ratios Paper Final Draft

 Industry Averages and Financial Ratios Paper Connie Addison, Christine Crocker, Kimberly Guy, Felicia Lombard, and Shavelle Woods FIN 370 January 12, 2015 Shamelda Pete Industry Averages and Financial Ratios Industry averages and financial ratio reports determine the financial health of an organization. Solvent, efficiency, and profitability are compared by key financial indicators and ratios that measure several companies within the same industry. The publicly traded company chosen by Team...

Premium Balance sheet, Esso, Exxon 1510  Words | 7  Pages

Open Document

Calculation of Financial Ratios for Google

The company that I have selected for Financial Ratio analysis is GOOGLE. The Ratios that I am going to analyze are grouped under four main headings: 1) Profitability Ratio 2) Liquidity Ratio 3) Debt Ratio 4) Market Ratio 1. Profitability Ratio - Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return. a. ROE - Return On Equity - Measures the rate of return on the ownership interest (shareholders' equity) of the common stock...

Premium Asset, Balance sheet, Financial ratio 1541  Words | 6  Pages

Open Document

Ratio Analysis

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...

Premium Financial ratio, Financial ratios, Investment 1239  Words | 4  Pages

Open Document

It Calculate Financial Ratios

BSA/500 Calculate Financial Ratios Riordan Manufacturing’s Calculated Financial Ratio Current Ratio The current ratio is the measure of the degree to which current assets cover current liabilities. A ratio of more than one suggests that it can pay most of its debts at that point in time.   The ability to effectively turn products into cash is a good sign of a company's financial state. Current assets $14,589,092.09 * $14,643,456.43 * Current liabilities $6,974,094 $6,029,696 Current...

Premium Asset, Balance sheet, Financial ratio 1645  Words | 6  Pages

Open Document

Financial Ratio Analysis of Microsoft

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...

Premium Asset, Balance sheet, Dividend 882  Words | 3  Pages

Open Document

Insiders Ratio

ANALYSIS FOR INSIDERS RATIOS 1. Manufacturing Cost per Unit The ratio demonstrated that how much Polycon is spending in producing one unit. It helps business owners determine when they'll turn a profit and helps them price their products with that in mind. It provides a dynamic overview of the relationships among revenues, costs and profits As little as company incurs on producing one unit, it will goes to the company's goodwill. In order to review the ratio under consideration, it has been...

Premium Costs, Financial ratios, Inventory 833  Words | 4  Pages

Open Document

Ethics and Ratio Analysis Paper

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:...

Premium American Broadcasting Company, Balance sheet, Burbank, California 871  Words | 3  Pages

Open Document

Financial Analysis

Financial Ratio Analysis PROFITABILITY - Ability to sell a product for more than the cost of producing it. - Not an exact estimate of the company's pricing strategy but give a good indication of financial health. - Without an adequate gross margin, a company will be unable to pay its operating and other expenses and build for the future. - Should be stable  should not fluctuate much from one period to another, unless the industry it is in has been undergoing drastic changes which will...

Premium Asset, Balance sheet, Debt 1081  Words | 4  Pages

Open Document

International Financial Reporting Standards

Interpreting Financial Statements An important factor to the success of a small business is understanding financial statements. Financial statements are very important and critical to a business’ journey to economic success. According to Edmonds, Olds & Tsay, (2008), when used properly, financial statements can act as a basis of information for business valuation. Another important and useful indicator when determining a business’ performance and financial situation are financial ratios. Financial...

Premium Asset, Balance sheet, Financial ratio 770  Words | 3  Pages

Open Document

Interpreting Financial Results

 Interpreting Financial Results FIN/571 Interpreting Financial Results When analyzing a business, financial statements provide a detailed look into the company and the success or failure which lies within in. Financial ratios are calculated to determine these numbers and to identify other number related variables that have an impact on the company and those investing in the business. Once determined they offer information concerning the businesses...

Premium Asset, Asset turnover, Balance sheet 788  Words | 5  Pages

Open Document

Financial Information

Financial Information 1. Why is financial information important for a business- provide four reasons * For owners and managers to be able to make sensible business decisions. * For prospective investors to know where the company stands financially. * Financial institutions such as banks can use this information to decide whether to give the company things such as loans etc. * For everyone within the company to understand its financial position, regarding assets, liabilities, equity...

Premium Asset, Balance sheet, Corporate finance 795  Words | 3  Pages

Open Document

Ratio Analysis Sums

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...

Premium Asset, Balance sheet, Cost of goods sold 519  Words | 3  Pages

Open Document

Ratio Analysis Article

Baderman Island Resort Financial Summary – Group C Jana Davis, Cat Capra, Liz McCaw, Elly Ponce, Raymond Robinson, Richard Rasmussen, Sam Mason ACC/291 Principles of Accounting II July 14, 2012 Lori McKinney | Baderman Island Resort | Memo To: CEO of Baderman Island Resort From: Team C CC: 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...

Premium Balance sheet, Financial ratio, Financial ratios 889  Words | 4  Pages

Open Document

Unit 2 Ratios P7

The solvency The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. The lower a company's solvency ratio, the greater the probability that it will default on its debt obligations. Current ratio The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company...

Premium Asset, Balance sheet, Corporate finance 469  Words | 3  Pages

Open Document

Sample Ratio Analysis

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...

Premium Balance sheet, Financial ratio, Financial ratios 1287  Words | 4  Pages

Open Document

RATIO ANALYSIS of masood textile mills

 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...

Premium Asset, Asset turnover, Balance sheet 1385  Words | 12  Pages

Open Document

Indicated Ratios for Campsey Calculated

a) Calculate the indicated ratios for Campsey Current Ratio = = = 1.98 x Industry average = 2.0 x The current ratio indicates the extent to which current assets cover current liabilities. The current ratio is near to industry average. So, we can say the current obligations can be met. Days sales outstanding = = = 75 Days Industry average = 35 Days Campsey’s days sales-outstanding is more than twice as long as the industry average, indicating that the firm should...

Premium Asset, Asset turnover, Balance sheet 519  Words | 5  Pages

Open Document

Become a StudyMode Member

Sign Up - It's Free