industry. “It is used to analyze the performance of a business. This ratio defines the effectiveness of the business while utilizing its working capital blocked in debtors. It also defines the frequency of alteration of receivables into
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As shown by their accounts for the year ended 31 January 2010. 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. Ratio analysis is good because it helps to compare current performance with previous records and it also helps monitor and identify issues that can be highlighted and resolved. However‚ there are some limitations with ratio analysis. For example it only includes numerical data‚ and no
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Ratio analysis of financial statements EXECUTIVE SUMMARY For the purpose of ratio analysis of financial statements ‚ we have choosed 6 cement industries i.e. ➢ Lucky cement ➢ Fauji cement ➢ Bestway cement ➢ Dadabhoy cement ➢ Maple leaf cement ➢ Attock cement We have calculated following categories of ratios: 1. Liquidity ratios 2. Asset management ratios 3. Debt management ratios
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Ratio‚ Vertical‚ and Horizontal Analyses Checkpoint Ashlee Kasica XACC/280 March 2‚ 2013 Brandi Zuber Financial statement analysis is the process of examining relationships among financial statement elements and making comparisons with relevant information. There are a variety of tools used to evaluate significance of financial statement data. Three of the most commonly used tools are the ratio analysis‚ horizontal analysis‚ and vertical analysis (Weygandt‚ J. J.‚ Kimmel
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The debt ratio is defined as the ratio of total long-term and short-term debt to total assets‚ stated as a decimal or percentage. It can be understood as the part of a company’s assets that are financed by debt. The debt ratio started out low but has since 2015 increase to 0.90. A high debt ratio implies a low proportionate equity base. Debt to Equity Ratio The debt to equity ratio is a financial‚ liquidity ratio that compares a company’s total debt to total equity. The debt to equity ratio shows the
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Contents Larsen & Toubro Limited (L&T) Read the annual report of one of the Sensex Companies and prepare a note covering the following topics: Brief History Shareholding Pattern Promoters Contents of Annual Report Brief History The evolution of L&T into the country ’s largest engineering and construction organization is among the most remarkable success stories in Indian industry. L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers
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Ratio Analysis: When evaluating a stock five types of ratios are considered: firm value ratios‚ profitability ratios‚ activity ratios‚ financial leverage ratios and liquidity ratios. After completing the proper calculations‚ assessments of the stock can be prepared. Starting with firm value ratios‚ Under Armour has earned a net worth of $1‚259‚559‚000. The higher the number‚ the more valuable the firm is on paper‚ and to Under Armour‚ this number is fair compared to other competitors in the
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representing an increase in market share from 32% to 34%.. Correspondingly‚ the production of PC and LCV for the quarter ended September 2010 also increased by 15% to 12‚186 units as against 10‚576 units produced in the same period in 2009. On the financial side‚ the company s sales revenue of the CKD‚ CBU and parts business grew by 20% to Rs 14. 3 billion over Rs 11.9 billion. Cost of sales
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analysis’ of the ratios: Current Ratio: Current Ratio is calculated by dividing total current assets by total current liabilities. “The current ratio measures the ability of a company to cover its short-term liabilities with its current assets.” (Wohlner‚ Investopedia) Acceptable Current Ratios‚ even though they differ from industry to industry‚ usually fall between the ranges of 1.5% to 3%. This means that is it a healthy business‚ with a good short-term financial strength. A current ratio of 1 or greater
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Financial Analysis SITARA CHEMICALS LTD 12/21/2010 GIFT UNIVERSITY YOUSUF KHAN 07208007 MUHAMMAD RAFI 07208004 ANAM MEHMOOD GURAYA 07208014 Contents SITARA CHEMICALS INDUSTURIES
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