a. Why are ratios useful? What three groups use ratio analysis and for what reasons? Financial ratios are designed to extract important information that might not be obvious simply from examining a firm’s financial statements. Financial statement analysis involves comparing a firm’s performance with that of other firms in the same industry and evaluating trend in the firm’s financial position over time. From the textbook ‚ we know managers use financial analysis to identify situations needing
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The Industry Averages and Financial Ratios Cassandra Brown‚ Diana Smiley‚ Patricia Ramirez FIN/370 - FINANCE FOR BUSINESS 11/23/14 Michael Rodriguez The Industry Averages and Financial Ratios In today’s market business really look at what the others in their competitive market are doing to compare how they are doing as a business or corporation. They do this by evaluating the industry averages and the financial ratios. When corporations and financial advisors look at the industry average
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Question 4 K Chapman 2007 | Industry Average | Difference between 2007 and Industry Average | GPR 36.68% | 43% | 6.32% | NPR 20.22% | 39% | 18.78% | ROE 38.65% | 45% | 6.35% | Tuesday 5th of June 2012 Report to K Chapman regarding gaining a loan to expand the business The following report has been prepared for K Chapman‚ to evaluate the financial status of the business. K Chapman is looking to expand within the business. K Chapman has applied to be granted a loan from
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INSTITUTE OF ACCOUNTANCY ARUSHA IN COLLABORATION WITH COVENTRY UNIVERSITY (UK) ASSIGNMENT 2: KENYA AIRWAYS CASE STUDY MODULE NAME: ORGANIZATION BEHOVIOUR AND HUMAN RESOURCE MANAGEMENT MODULE CODE: LECTURERS: DUE DATE: ARUM62EKM DR ANTHONY OLOMOLAIYE & MS HELLEN MESHACK 8th JANUARY 2011 1 Coursework cover sheet – be sure to keep a copy of all work submitted Submit via the coursework at Room No. 20 Administration Building Section A - To be completed by the student – PLEASE PRINT CLEARLY
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Industry Averages and Financial Ratios Paper: Microsoft Corporation Team A: Chris Brooks‚ Elsa Gutierrez‚ Christina Perez‚ Jose Villarreal Kristen Walker‚ and Thomas Woodard FIN/370 Ruth Smith March 30‚ 2015 Financial management is important for any successful business. Good financial management requires proper planning and keeping up with the conditions of the business’ finances situation through ratio analysis and other performance measures. These analysis are done to ultimately keep up with
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*Industry Averages-SIC #2711 (Newspaper Publishing) Common Size Balance Sheet Ratios % Assets: Cash & Equivalents 8.6 Accounts/Trade Receivables (net) 15.0 Inventory 5.7 All other current assets 2.0 Total current assets 31.2 Fixed Assets (net) 33.6 Intangibles (net) 23.0 All other non-current assets 12.1 Total Assets 100.0 Liabilities: Notes Payable-Short-term 2.6 Current Maturities of long-term
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1. Introduction This report provides a financial quarterly trend analysis for Costco Wholesale Corporation‚ Inc. founded in 1983. Costco Wholesale Corporation is the seventh largest retailer company in the world. As of July 2012‚ it was the fifth largest retailer‚ and the largest membership warehouse club chain in the United States ("Wikipedia‚ the free‚" 2011). Costco Wholesale Corporation’s stock is publicly traded on the National Association of Securities Dealers Automated Quotation (NASDAQ)
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FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company’s pricing strategy but it does give a good indication of financial health. Without an adequate gross margin‚ a company will be unable to pay its operating and other expenses and build for the future. In general‚ a company’s gross profit margin should be stable
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a good indicator of the cost of using those buildings and equipment? Compare that situation to a company with new buildings and equipment where there will be large amounts of depreciation expense. The remainder of our explanation of financial ratios and financial statement analysis will use information from the following income statement: Example Corporation Income Statement For the year ended December 31‚ 2011 | | Sales (all on credit) | $500‚000 | Cost of Goods Sold | 380‚000
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GROUP 1 REPORT FINANCIAL RATIOS Financial ratios are useful indicators of a firm’s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm’s financials to those of other firms. In some cases‚ ratio analysis can predict future bankruptcy. SOURCES OF DATA FOR FINANCIAL RATIOS Balance Sheet Income Statement Statement of Cash Flows Statement of Retained
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