1. Prologue: 1. Prologue: 1. Prologue 1.1Origin of the report: The term paper on “Quality Analysis of Financial Statement ” has been prepared for Mr Tanvir Ahmed Khan (Course instructor of Intermediate Accounting‚ ACT-330) as a partial requirement of the course . Real life does not go all the time like the theories and practical world is very critical and diverse. To understand the theoretical aspects of a subject one must understand the practical situation‚ problems‚ policies and implications
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Financial Ratios: What They MeanIn assessing the significance of various financial data‚ managers often engage in ratio analysis‚ the process of determining and evaluating financial ratios. A financial ratio is a relationship that indicates something about a company’s activities‚ such as the ratio between the company’s current assets and current liabilities or between its accounts receivable and its annual sales. The basic source for these ratios is the company’s financial statements that contain
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Ratio Analysis 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. The ratios are categorized as Short-term Solvency Ratios‚ Debt Management Ratios‚ Asset Management Ratios‚ Profitability Ratios‚ and Market Value Ratios. Ratio Analysis as a tool possesses several important features. The data‚ which are provided by financial statements‚ are readily available. The computation of ratios facilitates
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STUDY ON RATIO ANALYSIS” IN BANK OF INDIA‚SALEM A Project Report submitted to the SRM University in partial fulfillment of the requirements for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Submitted by J.Anand (Reg.No. 3511010044) Under the guidance of Dr. T.Ramachandran School of Management SRM University Kattangulathur MAY- 2012 SRM University Kattangulathur BONAFIDE CERTIFICATE This is to certify that the Project Report entitled “Ratio analysis in Bank
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What are the challenges of managing a matrix organization like GM’s basketweave? How has GM chosen to address these challenges? GM’s basketweave structure fits into a simultaneous organization structure perfectly. The purpose of implementing this matrix structure is to achieving both differentiation and integration within different regional segments and also within functional units. The new structure will help “to overhaul processes and reduce overlapping product lines‚ eliminating similar‚ often
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CLASSIFICATION OF RATIO ANALYSIS "Ratios" can be grouped into various classes according to "financial" activity or function to be evaluated. In view of the requirements of the various users of "ratios"‚ we can classify then into the following categories. Liquidity "Ratios" Profitability "Ratios" Solvency "Ratios" "Financial" statement "analysis" is a judgemental process. One of the primary objectives is identification of major changes in trends and relationships and the investigation of the
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| JOLLIBEE FOODS CORPORATION | COMMON SIZE FINANCIAL STATEMENTS AND RATIO ANALYSIS | | RUFIN‚ MA. URIKA C.2008103114FIN102DEAN MAURICE SABIOSY2010-2011 | | | RATIO ANALYSIS | 1.) EARNINGS PER SHARE | | | | | | | | | EPS= | NET INCOME - PREFERRED DIVIDENDS | | | | AVE. NO. OF COMMON SHARES OUTSTANDING | | | | | | | | | NET INCOME | OUTSTANDING SHARES | | | 3‚637‚297‚943 | 2010 | 1‚053‚438‚818 | | | | 2009 | 1‚051‚458‚156 | | | |
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RATIO ANALYSIS (ALL VALUES IN Rs. MILLION) 1. GROSS PROFIT MARGIN (%): GROSS PROFIT = NET SALES – COGS = TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs) = 53107 – (22510+21598+1025) = 7974 GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497% 2. RETURN ON ASSET(RoA) RETURN ON ASSET = (PAT/TOTAL ASSET)*100 = (4606/63454)*100 = 7.258% This indicates that around 7.3% of all assets have been utilized
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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‚ leverage and coverage.1 These five measured sections show how ratio analysis is used in decision-making‚ how a firm can measure its financial situation and financial performance‚ and the strengths and weaknesses of the company. The term ratio analysis can be broken
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Financial ratio analysis A reading prepared by Pamela Peterson Drake OUTLINE 1. 2. 3. 4. 5. 1. Introduction Liquidity ratios Profitability ratios and activity ratios Financial leverage ratios Shareholder ratios Introduction As a manager‚ you may want to reward employees based on their performance. How do you know how well they have done? How can you determine what departments or divisions have performed well? As a lender‚ how do decide the borrower will be able to pay back as promised? As a
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