Financial Results Liquidity: Current Ratio Parrino‚ Kidwell‚ & Bates (2012) detail the current ratio as current assets divided by liabilities. The current ratio identifies a firm’s potential to pay short-term liabilities; higher liquidity is a good sign for potential creditors (Parrino et al.‚ 2012). At the same time‚ however‚ the current ratio should not greatly exceed benchmarks of other competitors (Parrino et al.‚ 2012). This could be indicative of mismanagement of current assets and less cash flow
Premium Generally Accepted Accounting Principles Revenue Financial ratios
Ratio Analysis: 2009 | 2010 | 0.53 | 0.51 | Current Ratio: Analysis: 2:1 is the benchmark of current ratio. Here in 2007 current asset is 0.53 against 1 current liability. In every year the company is unable to increase their current ration. Because the current ratio in 2010 decreases to 0.51. The company has a small amount of current asset for each amount of current liability in every year and its improvement was not that much remarkable. Though the company never crossed
Premium Balance sheet Inventory Financial ratios
Financial Ratios The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio‚ long-term solvency ratio‚ contribution ratio‚ and general and management/expense ratio (Goetsch & Davis‚ 2010). The current ratio will enable VSUW to easily see their current expenses that may be aquired and make sure that the organization has enough resources to pay all of their current obligations
Premium Income statement Financial ratio International Financial Reporting Standards
are better known as ratio analysis. Ratios are among the more widely used tools of financial analysis because they provide clues to and symptoms of underlying conditions.2 Ratios help measure a company’s liquidity‚ activity‚ profitability‚ leverage and coverage.1 These five measured sections show how ratio analysis is used in decision-making‚ how a firm can measure its financial situation and financial performance‚ and the strengths and weaknesses of the company. The term ratio analysis can be broken
Premium Financial ratios Generally Accepted Accounting Principles Balance sheet
action=index&itemId=0470374942&bcsId=4881. Based on the information in the 2007 Annual Report‚ answer the following questions. For each question‚ note the page number(s) on which you found the information to answer the question. Your answers should be complete sentences. For the ratios‚ show and label (write the formula in words and numbers) all computations. Each student‚ as a member of a group‚ is required to complete the Financial Reporting Problem. You may self-select your group for this assignment; groups may have no more
Premium Balance sheet Income statement Generally Accepted Accounting Principles
Ratio Analysis Assignment-Danielle Goettl Using the financial ratios studied in this course‚ prepare a financial analysis of Marriot’s financial results for 2007-2011. Your analysis should address the following: 1. Income Statement: a. What trends do you see in Total Revenue? The trends that I see are that the total revenue for Marriot has stayed fairly consistent over the last five years. The smallest revenue year was in 2009 and but it wasn’t hugely drastic. b. How does
Premium Generally Accepted Accounting Principles Balance sheet Cash flow
Oracle Interpretation and Comparison between the two companies’ ratios (Reading the Appendix of Chapter 13 will help you prepare the commentary) According to this Oracle gives more per share to their stock holders then Microsoft does. Earnings per share As given in the income statement $2.73 Basic Common $1.69 Both companies have the ability to pay back their short term debts. Current ratio Current assets Current liabilities $74‚918 $28‚774 = 2.60 $73‚535 $14‚192
Premium Financial ratios Generally Accepted Accounting Principles Balance sheet
LIQUIDITY: CURRENT RATIO The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. From the table it shows that Ajinomoto (M) Berhad is the highest liquidity. The ratio is 5.38‚ followed by Padini Holding Berhad at 2.37 and 3rd British American Tobacco with ratio at 1.91. Therefore‚ we can see that Ajinomoto has enough resources to pay its debt over the next 12 months. LEVERAGE : DEBT RATIO Debt ratio is a financial
Premium Generally Accepted Accounting Principles Financial ratio Investment
format of these statements to meet their needs ~nd requirements. For example‚ properties may find it useful to expand this ~asic format by adding columns to provide: . . A comparative analysis of the current period results with the amounts budgeted for the period A comparative analysis of the current period results with those of the same period fot the preceding year Cumulative year-to-date information Percentage relationships between revenue and expenses ) . . Comparisons can be made by
Premium Financial ratio Revenue Balance sheet
Runninghead: IP 1 Individual Project Unit 3 BUS305-0804A-07 Concentration Ratio Economists use concentration ratio to measure the degree of concentration in a market‚ computed as the percentage of the market output produced by the largest firms (O’Sullivan‚ Sheffrin‚ & Perez. 2008). One of predominantly concentration ratio used is the Four Firm Concentration Ratio. Four Firm Concentration Ratio isthe percentage of total output in a market produced by the four largest firms. In considering
Premium Economics Monopoly Oligopoly