Financial Ratios: What They MeanIn assessing the significance of various financial data‚ managers often engage in ratio analysis‚ the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about a company’s activities‚ such as the ratio between the company’s current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios is the company’s financial statements that contain
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COMPANIES LIQUIDITY: CURRENT RATIO The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. From the table it shows that Ajinomoto (M) Berhad is the highest liquidity. The ratio is 5.38‚ followed by Padini Holding Berhad at 2.37 and 3rd British American Tobacco with ratio at 1.91. Therefore‚ we can see that Ajinomoto has enough resources to pay its debt over the next 12 months. LEVERAGE : DEBT RATIO Debt ratio is a
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Introduction……………………page1 Literature review………………page 2 Uses of ratios…………………...Page 2 Types of financial ratios………Page 3 ➢ Profitability ratios……….Page 3 ➢ Efficiency Ratios………....Page 4 ➢ Liquidity Ratios………….Page 5 ➢ Investment Ratios………..Page 6 Limitations of ratios…………..Page 8 Conclusion……………………..Page 8 Introduction. The primary purpose of accounting is to convey information about the business to management‚ investors‚ shareholders‚ government and other interested
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Edison created Modern society. . Today‚ we are living in so-called high-technology ages. We can control our daily life only by a finger and it has become real that we just imagine in a dream. Modern society’s people made a great advance in each social field. There are many contributors to the development of today’s society. Most of all‚ Thomas Edison might be greatest contributor. Thanks to his inventions‚ we can enjoy amenity‚ and economically develop our social level. 1.Edison and Telephone
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largest modern retailer. Its pioneer venture into modern trade was an innovation of the company’s trading legacy. Thereafter Cargills Food City continued to challenge the norm by taking to the masses what was traditionally an affluent focused business and offering ‘higher value for the lowest price’. Today the Cargills retail operation is spread across the island as ‘Cargills Food City’ supermarkets and ‘Cargills Food City Express’ convenience stores. Cargills Food City has been consistently
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understand. By doing the financial statement analysis‚ it will help the analyst to understand the performance of any company. The analysis of financial statement is a study of establishing meaningful relationship between various financial facts and figure given in financial statement. The basic financial statement included balance sheet and income statement which is the indicating device of profitability and financial soundness of business concern. Simple and valuable elements have been dissected by complex
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How Close Is Too Close? Question: How would you suggest Tim analyze this opportunity? Senior Vice President of supply chain management Tim Tree of Top Line‚ Inc. has to decide if being a partner is right for him. For Tree to make the proper decision he will need to list vital factors that will allow Dynamo and Top Line‚ Inc. to work as one. By strategically analyzing the short-term and long-term goals of Dynamo‚ Tree will see if the Dynamo organization will remain in a business with Top
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at the start of expansion‚ long term rates will be higher than the short term rates‚ leading to an upward sloping yield curve. 2. Using both the liquidity preference framework and the supply and demand for bonds framework‚ show why interest rates are procyclical (rising when the economy is expanding and falling during recessions). The liquidity preference framework. When the economy booms‚ the demand for money increases: people need more money to carry out an increased amount of transactions
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Norrie‚ Huber‚ Piercy‚ McKeown Introduction to Business Information Systems Second Canadian Edition TEST BANK Chapter 1 1. Globalization suggests that modern businesses are using information technology to: a) expand their market to customers around the globe b) find the lowest-cost suppliers regardless of location c) create 24 hour business days by shuttling work across time zones d) broaden the range of business activities across multiple nations *e) all of the above 2. Moore’s Law states that computing
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Chapter 1: Overview of Financial Statement Analysis Sample Multiple Choice Questions 1. Which of the following is likely to be the most informative source if you were interested in a company’s business plan or strategy? A) auditor’s letter B) management discussion and analysis C) proxy statement D) Footnotes Answer: B 2. Which of the following would not be considered a source of financing? A) notes receivable B) common stockholders’ equity C) retained earnings
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