Home Depot / Lowe ’s Financial Analysis 1 Running head: THE HOME LEADER -VS- IMPROVING HOME IMPROVEMENTS The Home Leader -vs- Improving Home Improvements James J. Elliott Capella University Douglas Smith‚ PhD Accounting and Finance in Organizations Home Depot / Lowe ’s Financial Analysis 2 Abstract An industry of competition‚ and tight margins The Home Depot‚ and Lowe ’s Company are still at it. Both of these companies stand now as the industry standard for the home improvement sector. The
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Dhaka University Department of Accounting & Information Systems EMBA Program Course Code: 5414 (Working Capital Management) (A FINANCIAL RATIO BASIS APPROACH) Prepared For: Ms. Rumana Ahmed Lecturer Dept. of Accounting & Information Systems University of Dhaka Prepared By: Tanvir Rahman (11018045) Md. Ehaque Fahad (11018046) Date of Submission: February 5‚ 2013 1 Table of Contents Topic Page No. 01. Abstract 3 02. Introduction 4 03. Objective of the Report
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optimises costs of capital and return on capital employed. The company’s main source of cash is through Net Operating Cash Flows. Cash is also raised through debt financing for managing temporary fluctuations in arranging liquidity and to refinance existing debt. BHP Billiton’s liquidity position is supported by its stable and strong credit rating and focused debt
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(PKNK) Syarikat Air Darul Aman (SADA) Liquidity Ratio Current Ratio 2.19 times - Quick Ratio 2.04 times - Cash Ratio 0.343 times - Efficiency Ratio Working Capital RM 189‚278‚871 RM 120‚434‚000 Inventory Turnover 1.3 times - Total Assets Turnover 0.078 times - Profitability Profit Margin 36.8% 7.94% Operating Margin 45.32% 10.62% Return on Assets (ROA) 2.95% 2.74% Return on Invested Capital (ROIC) 54.08% 28% Solvency Ratio Total Debt Ratio 32.16% -
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categorized in the main four financial ratios of the company which is to measure the profitability‚ liquidity‚ efficiency and gearing. The profitability ratios will measure how efficiently the company manages its operations and uses its assets to generate net income. It consists of the profit margin‚ return on assets (ROA) and return on equity (ROE). The liquidity ratio which is also known as the short-term solvency focuses on the current assets and current liabilities‚ which is important to the short-term
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accounting ratios The limitations are the lack of previous financial years. The concluding remarks specify that the profitability ratios are profitable and Let it Snow has potential to be invested in. The liquidity ratios show that Let it snow is capable of meeting its short term liabilities with appropriate liquidity requirements and allows creditors to provide funding. The solvency ratios show that Let it Snow can repay its long term debt and is able to support itself financially. If you need
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include: (1) liquidity‚ (2) solvency‚ (3) profitability‚ and (4) market prospects (Wild‚ 2011‚ pp. 565-582). A ratio analysis expresses a mathematical relation between two quantities‚ and can be expressed as a percent‚ rate‚ or portion (Wild‚ 2011‚ p.575). Analyzing BP Petroleum’s (BP) and Exxon Mobile Corp’s (Exxon) financial statements using ratio analysis will show the relation between the two companies and determine the state of their corporate health. Liquidity and Efficiency Liquidity refers to
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Financial analysis Profitability Gross profit margin amounted to 18% in 2011 and at 22.2% in 2010 with a decrease of 4% compared to a prior year. Decrease in the gross profit margin had been largely caused by the escalation in COGS which has resulted in a lower gross profit. This may point at an inefficient use of raw materials‚ labor and manufacturing related costs or basically an increased market price for raw materials and up surged wages. Followed by lower EBIT or operating profit margin
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4.0 LITERATURE STUDY 4.1 Introduction of Ratio MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship of two figures‚ which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as
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of company’s success in asset utilization‚ solvency‚ profitability‚ and liquidity. The company has demonstrated strong financial qualities pertaining to its solvency and profitability. Because Boston Beer Co. has no debt; the likelihood of them meeting expansion and growth goals is high. Consistency in incremental increases throughout the years relevant to profits leads to the long-term profitably the company. Asset utilization in the company and liquidity of the company do not demonstrate dramatic
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