FINANCIAL RATIOS LIQUIDITY RATIOS Current Ratio: = current assets / current liabilities ▪ The higher the ratio‚ the greater the "cushion" between current obligations and a firm ’s ability to meet them. ▪ Use: An indication of a company ’s ability to meet short-term debt obligations; the higher the ratio‚ the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities
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Profitablity Ratio Analysis This analysis ratio based on FAME report and annual report of Thortons (PLC) from 2007 to 2010. 1. Gross Profit Margin During period 2007-2010‚ Thorntons was achieved the highest gross profit margin in 2007. It was increased the sales/revenue 5.3% (from ₤ 176.60m to 186.00 m). In 2008 the sales was increased 11.9% (from ₤ 186.00m to 208.12 m) however the gross profit margin was decreased due to the high cost of good sales compare to previous year which was increased
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A PROJECT REPORT ON AN ANALYSIS & COMPARATIVE STUDY OF FINANCIAL STATEMENTS FOR KALYANI STEELS LTD.‚ PUNE SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILMENT OF TWO YEARS FULL TIME COURSE MASTERS IN BUSINESS ADMINISTRATION(MBA) SUBMITTED BY KETAN P. SHETTI (BATCH 2005-07) VISHWAKARMA INSTITUTE OF MANAGEMENT‚ PUNE-48 1 To Whomsoever It May Concern This is to certify that Mr. Shetti Ketan Prakash is a bonafide student of Vishwakarma Institute of Management‚ Pune. He has successfully
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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
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FINANCIAL STATEMENTS Accrual-based approach – revenues are recorded at the point of sale and costs when they are incurred‚ not necessarily when a firm receives or pays out cash Cash flow approach – used by financial professionals to focus attention on current and prospective inflows and outflows of cash 1. Balance sheet a. Assets Cash and Cash Equivalents Marketable securities Accounts receivable Inventories Net property‚ plant and equipment Intangible assets b. Liabilities Accounts
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Marketing Strategy Case Study 27.11.2014 Lisa Weber Yichen Zhang Yinpei Wang Melis Yücel Yoann Cordelet Sheng Xue Agenda 1. Company profile 2. Situational Analysis 3. Evaluating Strategic Options 4. Marketing Audit 5. Future Implementation 6. Conclusion 7. References 8. Appendix Company Profile 1 Company Profile Summary In general • • • • • A UK chocolate company Publicly owned enterprise Established by Joseph William in 1911 3900 people are employed by the company 2013: 249
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FINANCIAL RATIO ANALYSIS Based on the table 1‚ it shows that the financial ratio was divided into four parts which are liquidity‚ assets management‚ long-term debt paying ability and profitability. Liquidity ratios are particularly interesting to short-term creditors and it is focus on current assets and current liability. In addition‚ General Thumb of rule for the current ratio should be at least 2:1. For the Gemini Electronic the current ratio is consistent and it is increase in year 2006. But
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Team A Ratio Analysis Memo Liquidity Ratios section Current Ratio A company must consider current ratios when determining the Liquidity ratios; this is because a current ratio is used to determine what the company liquidity and their ability to pay the companies short term debts back. The current ratios are figured out by talking the company’s current assists and dividing them by their current liabilities. In order to become a ratio it must be taken by x: 1‚ x is the current assets for every dollar
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engagement letters. Crazy Eddie 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987. Identify and briefly explain the red flags in Crazy Eddie ’s financial statements that suggested the firm posted a higher-than-normal level of audit risk. Current Ratio (1987-84): 2.41‚ 1.40‚ 1.56‚ 0.93 Quick Ratio (1987-84): 1.40 ‚ 0.60‚ 0.77‚ 0.15 Inventory Turnover (1987-84): 3.23‚ 4.38‚ 5.13‚ 5.88 Inventory Turnover ratio shows how often goods are bought
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Financial Ratios The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio‚ long-term solvency ratio‚ contribution ratio‚ and general and management/expense ratio (Goetsch & Davis‚ 2010). The current ratio will enable VSUW to easily see their current expenses that may be aquired and make sure that the organization has enough resources to pay all of their current obligations
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