IBM HR
ANALYSIS OF THE REPORT
1.
Current ratio
The company in all the years will be able to meet its obligation, especially in 2013
2.
Quick ratio
Company is using its inventory efficiently during the year and meeting its long term expenses
3.
Cash ratio
Company has sufficient amount of cash to meet its requirements
4.
Inventory turnover ratio
The company in year 2013 is converting its inventory into valuable product and selling it more efficiently
5.
Inventory Holding Period
In year 2013, the company has the least inventory holding period , which means that company is managing its inventory in a more efficient way in that year.
6.
Fixed assets turnover ratio
The ratio is highest in the year 2013. It indicates that company is producing better sales as compared to the capital employed in fixed assets.
7.
Total assets turnover ratio
The ratio is gradually increasing from 2011 to 2013.Sales of the company is comparable to the money invested in purchasing these assets
8.
Current assets turnover ratio
The company is utilizing its current assets more effectively as compared to the total assets for generating revenues
9.
Interest leverage ratio
It is unusually high in the year 2013 compared to 2011 and 2012. Moderate value is usually preferred.
10.
Fixed Charge Coverage Ratio
It is minimum in the year 2012 while the ratio is almost equal in the year 2011 and 2013. Financial institutions providing long-term loans to the company should be concerned about this ratio.
11.
Net Profit Margin
NPM is almost constant over the years indicating that the company is able to maintain its profit margin with increase in sales over the years.
12.
Return on Investment
The values of return on investment are almost equal in all the three years. So, the company is having steady return on investment
13.
Return on capital employed
The value of return on capital employed is gradually increasing
1.
Current ratio
The company in all the years will be able to meet its obligation, especially in 2013
2.
Quick ratio
Company is using its inventory efficiently during the year and meeting its long term expenses
3.
Cash ratio
Company has sufficient amount of cash to meet its requirements
4.
Inventory turnover ratio
The company in year 2013 is converting its inventory into valuable product and selling it more efficiently
5.
Inventory Holding Period
In year 2013, the company has the least inventory holding period , which means that company is managing its inventory in a more efficient way in that year.
6.
Fixed assets turnover ratio
The ratio is highest in the year 2013. It indicates that company is producing better sales as compared to the capital employed in fixed assets.
7.
Total assets turnover ratio
The ratio is gradually increasing from 2011 to 2013.Sales of the company is comparable to the money invested in purchasing these assets
8.
Current assets turnover ratio
The company is utilizing its current assets more effectively as compared to the total assets for generating revenues
9.
Interest leverage ratio
It is unusually high in the year 2013 compared to 2011 and 2012. Moderate value is usually preferred.
10.
Fixed Charge Coverage Ratio
It is minimum in the year 2012 while the ratio is almost equal in the year 2011 and 2013. Financial institutions providing long-term loans to the company should be concerned about this ratio.
11.
Net Profit Margin
NPM is almost constant over the years indicating that the company is able to maintain its profit margin with increase in sales over the years.
12.
Return on Investment
The values of return on investment are almost equal in all the three years. So, the company is having steady return on investment
13.
Return on capital employed
The value of return on capital employed is gradually increasing