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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INTERPRETATION OF FINANCIAL STATEMENTS Ways of interpreting financial statements - Using individual items contained in financial statement. - Using ratios computed from items contained in Financial Statement (Ratio analysis) Reasons for interpreting accounts Accounts have to be analyzed and interpreted for the following logical points (1) Evaluation of the trading performance of a firm in order to have a measure of the quality of management running it. (2) Appraisal and monitoring
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Balance Sheet Items presented on the face of the statement of financial position represents an entity’s assets‚ liabilities‚ and equity (net assets) at a given point in time‚ a specific date. These items should be sufficiently detailed to enable identification of material components under US GAAP. In contrast the Financial Instruments and Exchange Act requires Japanese GAAP to present items in a more detailed manner compared to IFRS and US GAAP. Thus Bridgestone‚ following JP GAAP have more accounts
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CHAPTER 2 – Investing and Financing Decisions and the Balance Sheet I. THE OBJECTIVE OF FINANCIAL REPORTING‚ THE ELEMENTS OF THE BALANCE SHEET‚ AND THE RELATED KEY ACCOUNTING ASSUMPTIONS AND PRINCIPLES. A. Primary objective of financial reporting 1. To provide useful economic information about a business to help investors and creditors make good financial decisions. a. Decision makers are expected to have a reasonable understanding of accounting concepts and procedures
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Financial Reporting II Review of Ratio Analysis Ratio analysis is a useful tool for analyzing financial statements. Calculating ratios will aid in understanding the company’s strategy and in understanding its strengths and weaknesses relative to other companies and over time. They can sometimes be useful in identifying earnings management and in understanding the effect of accounting choices on the firm’s reported profitability and growth. Finally‚ the ratios help in obtaining a better understanding
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FINANCIAL RATIOS LIQUIDITY RATIOS Current Ratio: = current assets / current liabilities ▪ The higher the ratio‚ the greater the "cushion" between current obligations and a firm ’s ability to meet them. ▪ Use: An indication of a company ’s ability to meet short-term debt obligations; the higher the ratio‚ the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities
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ACKNOWLDGEMENTS 3 List of Tables 4 Chapter 1. Introduction 5 1.1 Theoretical background 8 1.1.1 Use and significance of Ratio Analysis 8 1.1.2 Limitations 11 1.1.3 Classifications of ratios 13 1.2 Research Methodology
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Data Table Analysis Introduction Kudler Fine Foods was founded by Kathy Kudler in the summer of 1998 in La Jolla‚ California. Two other stores were opened at Del Mar and Encinitas California‚ Kudler Fine Foods deals in specialty foods sells; fresh bakery/Pastries fresh produce fresh meat & seafood condiments and packaged foods cheese’s and specialty dairy products (Kudler Fine Foods‚ 2003). The Entity Relation diagram and pivot table would help Kudler Fine Foods improve the data tables and
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“50/50” directed by Jonathan Levine is a movie that was released back in the year 2011. This movie was made on a small budget but was critically acclaimed success due to the profit it had incarnated during its release. It does not stop there; this movie has been received well by both the audiences and especially by the critics which some have said it is a good hearted film made on a difficult topic. Moreover‚ this movie has been also nominated for several top awards in the film industry like the
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Major Works Data Sheet: “The Things They Carried” Title: “The Things They Carried” | Author: “Tim O’Brien” | Genre: Fiction | Date Published: 1990 | Plot summary: First Lieutenant Jimmy Cross is in love with a junior in college named Martha while he is in the middle of a war in Vietnam. While he travels around‚ he and Martha write letters to each other‚ in which he writes with love and she just writes back as a friend. Throughout the story‚ O’Brien lists all of the supplies they all carry
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