Financial ratio analysis A reading prepared by Pamela Peterson Drake OUTLINE 1. 2. 3. 4. 5. 1. Introduction Liquidity ratios Profitability ratios and activity ratios Financial leverage ratios Shareholder ratios Introduction As a manager‚ you may want to reward employees based on their performance. How do you know how well they have done? How can you determine what departments or divisions have performed well? As a lender‚ how do decide the borrower will be able to pay back as promised? As a
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000 65‚000 Prepaid expenses 7‚500 5‚000 Accounts payable 12‚000 18‚000 Income taxes payable 1‚600 1‚200 Instructions Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method. Exercise 2: The income statement of Haslett Company is shown below: HASLETT COMPANY Income Statement For the Year Ended December 31‚ 2008 Sales $8‚000‚000 Cost of goods sold 5‚400‚000 Gross profit 2‚600‚000 Operating expenses
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Current Ratio 2012 (‘000) 2013 (‘000) (Current Asset)/(Current Liabilities) (Current Asset )/( Current Liabilities) = (RM 308‚510)/RM161‚786 = RM337‚728/(RM 222‚768) = 1.91 : 1 = 1.52 : 1 The table above shows that Dutch Lady has a decreased
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Question: Are you a representative from from the ambulance company that took Laura to the hospital? Answer: Yes. Question: Do you know what injuries they were transporting her for? Answer: Possible symptoms of a concussion‚ broken arm‚ and memory loss. Question: Were you aware that she had jewelry on when she entered the ambulance but not when she exited? Answer: Yes. It is standard procedure to remove all jewelry from patients. Question: Do you hire people to work as EMT’s that have a past criminal
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MBF1223 ● FINANCIAL MANAGEMENT Department : Post Graduate Center Course Name : Mater in Finance and Banking Semester : Commence Date : Week 2 Deadline Date : Week 4 Unit Controller : Diep Mounin Examiner : Diep Mounin Contact Number : (+855)12 380 812 E-mail : Mounindiep@gmail.com INSTRUCTION 1. This is a Group Assignment consisting of THREE (3) members. 2. This Assignment will contribute twenty percent (30%) to the total marks of this module.
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Problem Statement The Downtown Health Clinic (DHC)‚ opened in 1999 and overseen by Perpetual Mercy Hospital‚ is concerned about the possibility of a similar clinic opening five blocks away from their facility. The main concerns are that the new clinic may attract DHC’s current patients and that a similar clinic in such proximity could hinder financial and profitability progress. The situation and four possible alternatives were analyzed in order to arrive at a recommendation of how DHC can compete
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Financial Statement Analysis Through the analysis of three companies in different sectors‚ this paper will show some basic concepts‚ techniques‚ and conventions of financial accounting. The three different areas Team B covered include a manufacturing company (3M)‚ an IT service company (Fujitsu)‚ and a retail company (Publix). Team B used the information provided by these companies to calculate its main financial ratios‚ and compare those to the ratios common for the same industry and country
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are engaged in manufacturing i Feasibility Study Imus Institute Colleges business which converts basic inputs‚ such as materials‚ labor and overhead‚ into finished products which are sold to customers. B. Management‚ Marketing‚ Financial Highlights Management Highlights In Management aspect‚ we divided the duties and responsibilities of each partner according to their ability‚ skills and knowledge. We apply segregation of duties to the four general
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Ratio Analysis Formulas 1) Financial ratios S.no | Ratio | Formula | Ideal ratio | comments | 1 | Current ratio | Current assetsCurrent liabilities | 2:1/1.33:1 | Indicates firm’s commitment to meet financial obligations.Avery heavy ratio is not desirable as it indicates less efficient use of funds | 2 | Quick ratio | Quick assetsCurrent liabilities | 1:1 | This ratio also indicates short term solvency of a firm | 3 | Debt –Equity ratios | long term debtequity | 1:2 | Indicates long
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businesses from other industries. To complete a thorough examination of any company’s effectiveness‚ however‚ more needs to be looked at than the easily attainable numbers like sales‚ profits‚ and total assets. Luckily‚ there are many well-tested ratios out there that make the task a bit less daunting. Financial ratio analysis helps identify and quantify a company’s strengths and weaknesses‚ evaluate its financial position‚ and shows potential risks. As with any other form of analysis‚ financial ratios
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