Chapter 3 Analysis of Financial Statements LEARNING OBJECTIVES After reading this chapter‚ students should be able to: • Explain why ratio analysis is usually the first step in the analysis of a company’s financial statements. • List the five groups of ratios‚ specify which ratios belong in each group‚ and explain what information each group gives us about the firm’s financial position. • State what trend analysis is‚ and why it is important. • Describe how
Premium Financial ratio Financial ratios Balance sheet
analyze the financial position of John Keells Holdings PLC. The author has consisted only JKH PLC along and not its subsidiaries (group). The author has made use eleven ratios to analyze the financial position of the company. The ratios that he has used are Return on Investment (ROI)‚ Return to shareholders‚ Return on Capital Employed (ROCE)‚ Earnings per share (EPS)‚ Price-Earnings Ratio (P/E)‚ Dividend yield‚ Dividend payout‚ Gearing ratio‚ Interest cover‚ Current ratio and Acid test ratio. The author
Premium Financial ratios Generally Accepted Accounting Principles Dividend yield
The Financial Detective‚ 2005 Teaching Note Synopsis and Objectives The case presents the student with financial ratios for eight pairs of unidentified companies and asks them to mate the description of the company with the financial profile derived from the ratios. The primary objective of this case is to introduce students to financial ratio analysis—in particular‚ the range of ratios and the insights each one affords. This case presumes that students have already been introduced to
Premium Financial ratios Financial ratio
Selected Financial Data for Toyota Motors Corp.‚ Inc. 2010-2014 (in 000s‚ YEN‚ expect per share amounts)(Automotive Segment) Income Statement Data (in 000s) (YEN) - Automotive Segment 2010 17‚197 Net Revenues Revenue Growth Yr-Yr Cost of Goods sold 15‚971 COGS GrowthYr-Yr Gross Profit 1‚226 Gross Profit GrowthYr-Yr Selling‚ general and admin expenses 2‚120 Gross Profit GrowthYr-Yr Income From operations (Loss) 87 Income from Operations GrowthYr-Yr Interest Expense net Other expenses net
Premium Revenue Generally Accepted Accounting Principles Financial ratios
B.Sc (Hons) in Applied Accounting Oxford Brookes University Research and Analysis Report Topic # 8 An Analysis of Business and Financial Performance of Ryanair Plc Submitted by: Salamun M Adnan ACCA Student Registration# 1476976 Word Count: RAP: 6466 Date: 21/11/2011 TABLE OF CONTENTS 1. INTRODUCTION......................................................... 4 1.1 PROJECT TOPIC AND SELECTED ORGANIZATION..................... 4 1.2 REASONS FOR CHOOSING THE TOPIC
Premium Generally Accepted Accounting Principles Balance sheet Revenue
QUESTIONS: 1. The person generally directly responsible for overseeing the tax management‚ cost accounting‚ financial accounting‚ and data processing functions is the: a. treasurer. b. director. c. controller. d. chairman of the board. e. chief executive officer. 2. The person generally directly responsible for overseeing the cash and credit functions‚ financial planning‚ and capital expenditures is the: a. treasurer. b. director. c. controller. d. chairman of the board
Premium Balance sheet Generally Accepted Accounting Principles Financial ratios
1.0 INTRODUCTION Sapura Kencana Petroleum Berhad (Sapura Kencana) is a full-fledged upstream player and one of the world’s largest integrated oil and gas services and solutions providers. Sapura Kencana’s full spectrum of capabilities covers the entire value chain of exploration‚ development‚ production‚ rejuvenation‚ and decommissioning and abandonment. Multinational workforce comprising 51 nationalities and over 13‚000 people‚ comprehensive world-class assets and project management capabilities
Premium Balance sheet Generally Accepted Accounting Principles Inventory
business and financial performance of Primark stores limited over the three year period 2007 to 2009. This report highlights more on the operations‚ strategy‚ business and financial performance of Primark stores limited. This is written in comparison to one of its competitors‚ BHS Limited. REASON FOR CHOOSING THIS TOPIC The reason why I have chosen this topic is that‚ as a student accountant‚ business and financial analysis is very important as it will widen my understanding of financial analysis of
Premium Financial ratios Financial statements Revenue
market. An example of financing decisions would be allowing investors to buy stock in the company. Question #2: Chapter 2 (Ten Points) Describe the distinguishing characteristics of the major financial markets. A financial market is a market where securities are issued and traded. These financial markets channel savings to corporate investment and they help match up borrowers and lenders. They provide liquidity and diversification opportunities for investors. Some of these markets include
Premium Investment Financial markets Depreciation
Financial Information 1. Why is financial information important for a business- provide four reasons * For owners and managers to be able to make sensible business decisions. * For prospective investors to know where the company stands financially. * Financial institutions such as banks can use this information to decide whether to give the company things such as loans etc. * For everyone within the company to understand its financial position‚ regarding assets‚ liabilities‚ equity
Premium Generally Accepted Accounting Principles Revenue Financial ratios