STUDY RATIO ANALYSIS ANALYSIS OF FINANCIAL STATEMENTS The traditional financial statements that comprise of the balance sheet and profit and loss account do not give enough information related to financial operations of the company. These financial statements prepared as per the statutory requirement of law need to be analyzed in order to evaluate the past performance of the company and the future prospects. The most widely used tool is Ratio Analysis. DEFINITION OF RATIO A way of expressing
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Companies strive from day to day to make their business publicly strong‚ financially strong‚ and appeasing and profitable for its shareholders. Shareholders as well as the company’s management use several tools to determine a company’s health and direction. These tools 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
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How ratio analysis benefits the stakeholders of a company Ratio analysis is a type of financial information that always prepared to satisfy in some way the needs of various interested parties (stakeholders). Below are some of the benefits that the stakeholders can get from the ratio analysis: Planning and Forecasting Management uses the ratio analysis to identify the future trends of its financial performance. With those information‚ its provide opportunity for the management team in planning
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of Phoenix Material Patton-Fuller Ratio Analysis There is a _$_1 million__ difference between the “unaudited” and the “audited” financial reports. The subsequent audit adjustment __increase bad debt_____expense by $__1 milion___ and changed the operating results for 2009 from _a gain to a loss_‚ as compared to the unaudited financial statements. This audit adjustment reduced _the profitability_by 1 mil_and weakens the __creditability_ of the CEO’s report to the Board in December. The CEO’s
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members: Bangladesh University of Business & Technology Date of submission: TRANSMITTAL LETTER The Report supervisor Md. Amdadul Haque Asst. Professor Department of Finance Bangladesh University of Business & Technology (BUBT). Subject: Submission of financial report of Renata Ltd. & Beximco Pharmaceuticals Ltd. Dear Sir It is our pleasure to present the report on Managerial Finance. Which is done for partial fulfillment of the requirement of BBA degree. As measurement we
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Development Company Limited Financial Analysis Report Period coverage: 1st July 2011 to 30th June 2012 Prepared and Presented by: Dr. Babur Zahiruddin Raza‚ Corporate Office Consultant in Human Resources & Master Trainer in H.R Applications Research Consultant Mr. J. S Khan IT Consultant Mr. Raheel Rustam Ph: 051-5584905‚ 5792836 Cell: 0332 – 4923235 Email: baburzahiruddin@yahoo.com‚ TABLE OF CONTENTS SR no Description Page no 1 Financial analysis approach ------------------------------------------
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Huffman Trucking Ratio Analysis Team B has completed a ratio analysis on Huffman Trucking. Our team has looked over financial statements to determine the liquidity‚ profitability‚ and solvency ratios of Huffman Trucking. These ratios provide detailed information to creditors‚ investors‚ and employees. Together‚ the ratios reveal data related to the performance and position of Huffman Trucking. What do the liquidity‚ profitability‚ and solvency ratios reveal about the company’s financial position?
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takes an extra 20 minutes of lunch to run personal errands. Agency Problem: she took an extra 20 minutes to do her personal errands instead of working‚ which she puts her own self interests before the best interests of the company. Occurred cost: the salary that the company pays to her. The solution would depend on the boss on her work performance in the past. If she has an important personal errand to do during that time‚ then boss might need to talk to her and explain the solution for her.
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(1) Calculate the firm’s financial ratios for 2007: Vanguard Group 2007 financial ratios 1. Current ratio = current assets/current liabilities = 718‚750/431‚250 = 1.67 2. Quick ratio= (current assets-inventory)/current liabilities = (718‚750-303‚750)/431‚250 = 0.96 3. Inventory turnover= cost of sales/average stock = 1‚362‚480/303‚750 =4.49 4. Average collection period= (average debtors/annual credit sales)×365 = (296‚250/1‚680‚000) ×365 = 64 days 5. Total asset turnover= annual sales/total assets
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MoGen On January 10‚ 2006 the managing director of Merrill Lynch’s Equity- Linked Capital markets Group‚ Dar Maanavi‚ was reviewing the final drafts of a proposal for a convertible debt offering by MoGen‚ Inc. As a leading biotechnology company in the United States‚ MoGen had become an important client for Merrill Lynch over the years. In fact‚ if this deal were to be approved by MoGen at $5billion‚ it would represent Merrill Lynch’s third financing for MoGen in four years with proceeds raised
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