Liquidity Liquidity is vital to the survival of a business for there to be sufficient liquid resources available to meet maturing obligations. Liquidity refers to the ease with which assets can be converted to cash in the normal course of business. The current ratio compares the ‘liquid’ assets of a business with the current liabilities. The higher the ratio‚ the more liquid the business is considered to be. Some people seem to suggest there is an ‘ideal’ current ratio (usually 2:1) for all
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important to consider debt-to-equity ratio and return on shareholders’ equity (ROE) in order to evaluate the relationship between risk and profitability of each company. Debt to equity ratio is a debt ratio which measures a company’s leverage. It is caculated by dividing total liabilities by total shareholder equity. During the fiscal year 2016‚ the debt-to-equity ratio of Costco‚ Target‚ Walmart were 1.72‚ 2.42‚ and 1.52‚ perspectively. Target had the highest ratio 2.42. This means for every dollar
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Ratio Analysis Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm’s financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios‚ Debt Management Ratios‚ Asset Management Ratios‚ Profitability Ratios‚ and Market Value Ratios. Ratio Analysis as a tool possesses several important features. The data‚ which are provided by financial statements‚ are readily available. The computation of ratios facilitates
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to compete with Walmart‚Best Buy works hard to attract profitable customers and equally hard to discourage the unprofitable customers which those that are price shopping and looking for discounts and promotions and comparing prices to Walmart. Best Buy studies demographic and sales data for each store location to identify profitable and unprofitable customers. Customer profitabilty analysis idetifies customer service activities and cost drivers and determines the profitability of each customer
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Mindy’s Sections Profitability BJB intends to apply a six sigma approach to improving profitability in the innovative CD changers. Using such tools provided through this approach will lead to major cost reduction and quality improvements that will result in an increase in profitability. The approach will involve measuring capability of processes to produce services and products that remain free of defect. Experts at BJB will analyze standard deviation‚ short term performance data‚ and critical
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Liquidity Ratio’s. 1)CURRENT RATIO: CURRENT ASSETS CURRENT LIABILITIES Interpretation: The ideal ratio 2:1 . The liquidity position of the company is not satisfactory because it is not reached the ideal ratio 2:1 . Thecompany should increase the current assets and decrease thecurrent liabilities. Quick Ratio Current assets –inventories. Current liabilities Interpretation: the liquidity position of the company is not satisfactory because the ratio is decrease and not reached the
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Historical Background of JBPL2.Company’s Logo3.Company’s Vision4.Company’s Mission5.Introduction to the product- Soft Drinks6.About the Soft Drinks7.How Soft Drinks are made8.Soft Drinks produced by JBPL9.Punch lines10. Mile Stones11. Departments 7 History psiCo‚ Inco¢ po¢ £ t¡ dis a Fortune 500‚ American globalcorporation headquartered in Purchase‚ Harrison‚ New York‚ withinterests in the manufacturing‚ marketing and distribution of grain-based snack foods‚ beverages‚ and other products
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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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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
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Implementation 7. Verification 8. Administration Financial Statement Analysis – The Big Picture FS Analysis Involves careful selection of date from financial statements for the primary purpose of forecasting the financial health of the company. This is accomplished by examining trends in key financial data‚ comparing financial data across companies‚ and analyzing key financial ratios. Another important aspect of financial analysis is the comparison of actual financial conditions with expected financial
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