13 FINANCIAL ANALYSIS 16 Short-Term Liquidity Analysis 16 Current ratio 16 Acid Test (or Quick Test Ratio) 16 Accounts Receivable Turnover 17 Inventory Turnover 17 Days in Sales Receivables 17 Days in Inventory 18 Days Purchases in Account Payable 18 Average Net Trade Cycle 18 Cash provided by operations to average current liabilities 18 CAPITAL STRUCTURE AND SOLVENCY RATIOS ANALYSIS
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Analysis of Financial Statements Ratio Analysis DuPont Equation Potential Misuse of ROE Use Financial Ratios to performance Uses and Limitations of Financial Ratios • Ratios help us to evaluate financial statements. Ratios are used to make comparisons. • There are many different ratios‚ with different ones used to examine different aspects of the firm’s operations. • Ratios can be divided into 5 categories: 1. 2. 3. 4. 5. Liquidity ratios‚ Asset management ratios‚ Debt management ratios‚ Profitability
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FIN3113—Chapter 3 Working with Financial Statements 1. BC Corporation has 1‚800‚000 shares outstanding & earned $2‚700‚000 last year on assets of $20 million & equity of $15 million. What is the PE ratio for BC if the stock is currently selling at $18 per share? • 12 • EPS=$2‚700‚000/1‚800‚000=1.5 & PE is price per earnings (18/1.5)=12 2. Which of the following are traditional financial ratio categories? • Profitability ratios‚ financial leverage ratios‚ turnover ratios 3. AD Corporation
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Long-term Financial Planning FIN 3504 Pavel G. Savor What is a Financial Plan? A high-level description of how a firm will achieve its financial objectives First step: Second step: Decide what are the appropriate general objectives Growth ≠ value creation Pick the planning horizon and the level of aggregation Third step: Come up with projections Elements of Financial Policy 1. Investments 2. Capital structure 3. NWC management 4. Shareholder return (dividends and/or share
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Financial Management and Control Kingspan Assignment 6th December 2012 Contents Introduction 4 1. Profitability Ratios 4 1.1 Gross Profit Ratio 4 1.2 Net Profit Ratio 4 1.3 Return on Capital Employed (ROCE) 4 2. Liquidity Ratios 5 2.1 Current Ratio 5 2.2 Quick Ratio/Acid Test Ratio 5 3. Efficiency Ratios 6 3.1 Debtors Days 6 3.2 Creditors Days 6 3.3 Inventory Turnover Days 6 4. Gearing Ratios 7 4.1 Gearing Ratio 7 4.2 Debt to Equity Ratio 7 4.3 Interest Cover
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I will begin my assignment by saying that my topic would be FINANCIAL ANALYSIS OF Nokia .First I will begin by writing the introduction part EXECUTIVE SUMMARY For this assignment‚ I chose the company NOKIA. Now Nokia is a mobile telecommunications company‚ which offers far more than just mobile phones for day to day use. Nokia offers networking solutions for businesses that help businesses stay connected and communicate with each other at all times and places. Nokia also offers special mobile
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Table of Contents Introduction .3 Section 1 .. .3 Section 2- Ratio Analysis ... 8 Table 1- Ratio Analysis for 3 restaurants ... ..8 Section 3- Vertical Analysis 9 Table 2- Vertical/Common Size Analysis ... 9 Section 4- Major Elements of Cash Flow .10 Table 3- Cash Flow Comparison for 3 restaurants ... ..10 Figure 1- Comparison of Net Income ... 11 Figure 2- Comparison
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Analyze the company ’s financial strength a. Assess the financial strength of the company. b. How is the financial strength likely to change in the next year or so? c. What are its sources of capital and what is the value of the company ’s capital? a. Financial strength assessment Financial strength is the result that company uses financial resources to carry out investing activities‚ and embodies the value of the enterprise’s financial management capabilities‚ which mainly includes
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reached at the conclusion of performing on following topic; “An Analysis of the Financial Situation of Your Choice of Organization” The selection of this topic was as a result of various influences and views discussed with my mentor. Some of which are as follows; ❖ The approved and authentic easily available information. ❖ This analysis provides overall summarized sketch of company’s financial performance and operating achievement of their desired objectives against certain standards
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covered in the following primary comparative financial statements‚ namely fiscal years ended 1 February 2004‚ 2 February 2003 and 3 February 2002: • Consolidated Statement of Earnings • Statement of Stockholders Equity and Comprehensive Income • Consolidated Statements of Cash Flows There are 2 years covered in the Consolidated Balance Sheet‚ namely fiscal years ended 1 February 2004 and 2 February 2003. All of the primary comparative financial statements were audited‚ namely the Consolidated
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