IMPORTANCE OF RATIO ANALYSIS Ratio analysis is a tool used by individuals to conduct a quantitative analysis of information in a company’s financial statements. Ratios are calculated from current year numbers and are then compared to previous years‚ other companies‚ the industry‚ or even the economy to judge the performance of the company. Ratio analysis is predominately used by proponents of fundamental analysis. The ratio analysis is one of the most important tools of financial analysis. The
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Irrational Ratios 1 of 5 http://www.journalofaccountancy.com/Issues/2001/Aug/IrrationalRatios... FRAUD The numbers raise a red flag. BY JOSEPH T. WELLS AUGUST 2001 inancial statements tell a story‚” says accounting professor W. Steve Albrecht‚ “and the story should make sense.” If not‚ it’s possible the story is a fake. By standing far enough back from the numbers to get a good picture of the client’s business‚ auditors frequently can detect signs of financial statement frauds
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Economy------------------------------------------------------------- 5 4. Wm Morrison supermarkets plc---------------------------------5 4.1 Management--------------------------------------------------------- 6 4.2 Sectors and geography--------------------------------------------6 4.3 Economy---------------------------------------------------------------6 5. Ratio analysis---------------------------------------------------------7 6. Post Financial Statements Period------------------------------
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Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days‚ weeks‚ or months‚ and within one year. This contrasts with durable goods or major appliances such as kitchen appliances‚ which are generally replaced over a period of several years. FMCG have a short shelf life‚ either as a result of high consumer demand
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The bluest eye is a novel written by Toni Morrison. The novel took place majorly in the 1940s Lorain‚ Ohio when racism was still predominant and after the great depression. The Bluest Eye centers around Pecola Breedlove a young black girl who believes that whiteness is beauty and inherently denies the beauty of her own blackness. The novel intricately and blatantly narrates the lives of African-Americans during the 40s leading well into the 70s and even till now. Pecola’s dream of having this standard
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Debt/Equity Ratio What Does Debt/Equity Ratio Mean? A measure of a company’s financial leverage calculated by dividing its total liabilities by its stockholders’ equity; it indicates what proportion of equity and debt the company is using to finance its assets. http://financial-dictionary.thefreedictionary.com/debt%2Fequity+ratio ’Debt/Equity Ratio’ A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings
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As the result of the ratio analysis. There are 5 limitations of ratio analysis as well. The first limitation of the ratio analysis is Comparing the ratios between two organizations/firms is a smooth path to do it. This is because‚ different organization/firms might have face unequal figures of earnings‚ losses. In addition‚ fact is the two difference organizations/firms might have different economic environment or production technologies even though they produce the same range of the product. For
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even realize what they are doing. In her story‚ it may focus on race but Morrison actually shows the psychoanalytic behaviors from lack of care in each encounter between her main characters. For example‚ the first at St. Bonny’s was based off of race where she writes “Roberta must have thought I meant that my mother would be mad about my being put in the shelter. Not about rooming with her” (Morrison 199) Although Morrison gives off the impression that Twyla doesn’t like Roberta because of
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4-2 Why would the inventory turnover ratio be more important for someone analyzing a grocery store chain than an insurance company? The inventory turnover ratio is important to a grocery store because of the much larger inventory required and because some of that inventory is perishable. An insurance company would have no inventory to speak of since its line of business is selling insurance policies or other similar financial products--contracts written on paper and entered into between the company
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even at this age“ (Morrison 2). Though‚ Twyla believes that she is just born mute “even for a mute‚ it was dumb-dressing like a kid and never saying anything at all” (Morrison 3). She still underestimates Maggie‚ by calling her dumb‚ because she is different in terms of her physical appearance compared to the people in St. Bonnys. Even Twyla recognizes the importance of communication‚ “but what about if somebody tries to kill her? Or what if she wants to cry? Can she cry?” (Morrison 3). According to
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