2.0 FINANCIAL RATIOS 2 Liquidity Ratios Liquidity ratios measure a business ’ capacity to pay its debts as they come due. It also measures the cooperative’s ability to meet short-term obligations. Liquidity refers to the solvency of the firm’s overall financial position – the ease with which it can pay its bills. Because a common precursor to financial distress and bankruptcy is low or declining liquidity‚ these ratios can provide early signs of cash flow problems and impending
Premium Financial ratio Inventory Financial ratios
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
Premium Financial ratios Financial ratio Generally Accepted Accounting Principles
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
Premium Balance sheet Financial ratios Generally Accepted Accounting Principles
Week 3 Activity – Calculate Overtime Pay Week 3 Activity – Calculate Overtime Pay ------------------------------------------------- TCO #4 – Given a simple business problem that requires one or more decisions‚ create a solution algorithm that uses decisions with logical and relational expressions. ------------------------------------------------- TCO #9 – Given a program with logic errors that is intended as a solution to a simple business problem‚ employ debugging diagnostics to remove
Premium Algorithm Mathematics Flowchart
Should you vote in favor? The British wouldn’t bother you anymore‚ but at least they gave you supplies. I should vote against‚ your brain says. Again‚ it says‚ I should vote against. “Mr. Morton‚ are you for or against?” Against everything your thoughts tell you‚ you say: “For.” That vote by John Morton‚ my 8th great-grandfather‚ provided the swing vote that caused Pennsylvania to ratify the Declaration of Independence (Mouser‚ David). That is one of many interesting stories of my family’s past
Premium United States American Revolution President of the United States
1. Comprehensive exercise to calculate variances: Gilder Corporation makes a product with the following standard costs: The company reported the following results concerning this product in June. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. Required: a. Compute the materials quantity variance. 15‚600 F b. Compute the materials price variance. 44‚100 * 0.1 = 4‚410 F c. Compute
Premium Direct material price variance Variance Cost
you find a combination of numbers that is more significant than this one. This ratio is known as the Golden Number‚ or the Golden Ratio. This mystery number has been used throughout different aspects of life‚ such as art‚ architecture‚ and of course‚ mathematics. One may wonder where the Golden Ratio came from? Who thought to discover it? When was it discovered? And how has it been used throughout time? The Golden ratio has been used throughout different aspects of life after being discovered during
Premium Golden ratio
The history of the intravenous therapy is less than a century old. Yet‚ it is well known that medication could be injected directly into the vein as early as the 1600’s‚ because of the lack of scientific methods‚ original attempts to deliver IV fluids and drugs met with little success. Two world wars brought in the era of modern IV therapy. However‚ the greatest advance in drugs‚ equipment‚ and procedures has occurred in the past 25 years. The first intravenous injections were experimented with in
Premium Intravenous therapy Lethal injection
Report Introduction: Any successful business the owners is always calculate the performance of the company‚ comparing it with the company ’s historical figures‚ with its industry competitors‚ and even with successful businesses from other industries. To complete a thorough examination of your company ’s effectiveness‚ however‚ I will calculate the statement of financial performance and statement of financial position‚ so I need to look at more than just easily attainable numbers like sales
Premium Asset Balance sheet Inventory
Financial Ratio: A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise ’s financial statements. Often used in accounting‚ there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm‚ by current and potential shareholders (owners) of a firm‚ and by a firm ’s creditors. Security analysts use financial ratios to compare
Premium Financial ratios Financial ratio Generally Accepted Accounting Principles