http://www.investopedia.com/university/ratios/liquidity-measurement/default.asp LIQUIDITY RATIOS: The first ratios we’ll take a look at in this tutorial are the liquidity ratios. Liquidity ratios attempt to measure a company’s ability to pay off its short-term debt obligations. This is done by comparing a company’s most liquid assets (or‚ those that can be easily converted to cash)‚ its short-term liabilities. In general‚ the greater the coverage of liquid assets to short-term liabilities the
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Ratio Analysis Paper Before beginning an analysis of a company it is necessary to have a complete set of financial statements‚ preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories‚ liquidity‚ activity‚ profitability‚ and financial leverage. This document will use a variety of these
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Sky Rocketing Oil Prices - a ‘Stealth Threat’ to Shipping Industry The extraordinary rise in oil prices has an indelible impact on many industries. Being an activity that depends greatly on oil‚ shipping has not escaped this development. Shipping is a crucial facilitator of much of the world’s trade; hence‚ the rising cost of shipping as a result of the rise in oil prices is naturally a matter of great concern to the industry and beyond. Shipping companies are decidedly edgy to market trends
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for iPods. Price elasticity is a tool designed to identify the overall change in demand or supply of a product compared to the overall movement of price. For the sake of this paper‚ we will focus on the overall change in demand from consumers. Elasticity is calculated by creating a ratio of the percentage change in demand of a good compared to the percentage change in price. If the percentage change in demand is greater than the percentage change in price‚ the product would have a ratio of more than
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Price SK-II is known as the one of the most expensive skin care or beauty brands in Asia and the world. To keep up global brands status and able to compete better than competitors‚ SK-II has used product line pricing strategy. (UKESSAYS.com n.d.) Most of the normal type of SK-II products are pricing from RM80 until RM150‚ while the luxury type of SK-II products are pricing from RM150 until RM300. (UKESSAYS.com n.d.) Although SK-II products are mostly expensive‚ but it works well for the consumers
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many customers in the United States but also across the world. Caterpillar Is the leader in their industry because of their size and innovation of their machines and engines. The research conducted in this paper was to learn about the financial health‚ history and whether or not it would be a good idea to invest into Caterpillar and whether or not Caterpillar would be a good investment for the average investor. The History and background of caterpillar is discussed‚ so is the stock valuation and risk
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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 conditions. Expected conditions may be represented by: a. Predetermined standards b. Past performance c. Competitor’s performance d. Industry average Financial Statements Although are essentially historical documents‚ may still provide us valuable information
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result of $2 million. The available $700‚000 in additional debt has a break point of $2‚800‚000 (see exhibit 2). The weighted average cost of capital is found by way of weighting each capital resource by its fraction of the organization’s capital structure (Principles of Corporate Finance pg. 521). The ranges that result from these break points cause the weighted average cost of capital to be 19.14% in the range
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Introduction On March 7‚ 2011 The Star‚ we know that our Malaysia government had decided to recruit more foreign workers from India which around 45‚000 people from India. This is to meet the demand by around 13 sectors which currently in shortage of workforce. So‚ this resulted in many people and The Malaysian Trades Union Congress (MTUC) had strongly opposed the decisions made by government. The Malaysian Trade Union Congress (MTUC) is said as the most representative workers’ organization in Malaysia
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these five are required by the auditing standards? a. (AU 314) The auditor should obtain an understanding of the entity and its environment in the following areas: i. Client’s application of accounting policies ii. The industry‚ regulation and other factors affecting the client iii. Client’s objectives ‚ strategies‚ and related business risks iv. Methods used by the client to measure and review performance v. The client’s internal control
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