Limitations of Ratios used for analysis: 1. Inflation will distort a firm’s balance sheet and a trend analysis may not give a true picture of the firm’s financial performance. 2. Different fiscal year‚ example‚ a firm may have a fiscal year that ends on June 30‚ whereas another company in the same industry may have a fiscal year ends on 31 . 3. Financial analysis is performed on historical data mainly for the purpose of forecasting future performance. The historical relationships may not continue
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Memo To: ABC Inc. From: Hank Date: September 30‚ 2013 Re: Problem 1&2&3 In the first problem‚ based on a careful study‚ the project will have the following performance: a) The exact Payback Period is 4.62 years b) The discounted Payback Period is 5.58 years c) The Internal Rate of Return (IRR) of the machine is 13.87% d) The Net Present Value (NPV) is $1‚136‚020.85 e) The Profitability Index (PI) associated with the project is 1.14 If we make decision
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ACCOUNTANTS OF PAKISTAN REPORT ON RATIO ANALYSIS OF M/S RANI LIMITED PREPARED FOR: Board of Directors PREPARED BY: Management Accountant TABLE OF CONTENTS Particulars Executive Summary Introduction Page No. 3-4 5 Financial Position and Ratio Analysis 6 - 10 Suggestions & Conclusion 11 - 12 Appendices Horizontal & Vertical Analysis of Income Statement Comparative Ratios & averages Trend of Ratios & Percentages Graphical Representation
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Running Head: Peregrine Trucking Co Peregrine Trucking Co MGT 325 Transportation Management William Barker 02/14/2012 Organizations are constantly being challenged to identify ways to reduce operating cost‚ increase equipment capacity and utilization. There are many variables in why we see continued increases. One of the major effects is raising fuel cost. Companies are constantly battling this variable. This is not the only issue facing companies today. But it is certainly a concerning
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Singapore Institute of Materials Management Diploma in Supply Chain Management Case Study: Double D Trucking Name : Jesmin Chen Shujun Batch : DSCM12/28 Subject : Distribution Management Lecturer : Mr Mystafa Sutan Date : 03 July 2011 Q1: Assess the conclusion reached by Douglas Dean regarding the nature of today ’s trucking industry and shipper demand characteristics. A1: The conclusion reached by Douglas Dean is “to become a full-service
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Report CFT LTD To: Director’s of CFT Ltd From: Accountant Subject: Financial Analysis of CFT Ltd Date: 4 October 2012 Liquidity ratio: It’s focus on the solvency of the business and includes two ratio- 1. Current ratio 2. Quick assets ratio If the liquidity level of a company is high then it means that the company has or can generate enough cash to meet its short term requirements for cash- it can easily pay its bills on time. On the other hand if the liquidity level is low then the
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drivers depower the brakes on their tractor and rely solely on the trailer brakes for braking action. Why would they risk their lives and safety this way? To save money. This unsafe practice is illegal and likely isn’t practiced by the reputable trucking companies. They have too much to lose by engaging in such a practice. Instead‚ it’s the small owner operator who is most likely to do this. It is especially
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An INTERNSHIP REPORT ON FINANCIAL ANALYSIS OF ACC LIMITED AND STUDY OF CEMENT MARKET THROUGH DEALERS OF ACC Submitted in partial fulfilment of the requirement for the award of degree of Bachelor of Business Administration (BBA) (2009-2012) CUNDUCTED AT BUILD WITH CONFIDENCE Submitted to Submitted By:- Acc limited
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Associate Level Material Ratio Analysis Form Use the table on the next page to complete the Week Eight assignment. In this assignment‚ you will review the textbook to find the definitions for each ratio. Use the financial statements for Drs. Smith and Brown‚ located on the student website‚ to perform the calculations and complete the form. Review the following example on how to perform the inventory turnover calculation‚ which shows you how to complete the table. * Two different
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RATIO ANALYSIS Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of one number to another. It may be defined as the indicated quotient of two mathematical expressions. According to Accountant’s Handbook by Wixon‚ Kell and Bedford‚ “a ratio is an expression of the quantitative relationship between two numbers”. Ratio Analysis:Ratio analysis is the process of determining and interpreting numerical relationship based on financial statements. It is the technique of
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