387Cash dividends 2‚429 1‚329Instructions(a) Compute the following liquidity ratios for 2004 for Coca-Cola and for PepsiCo and comment on the relative liquidity of the two competitors.(1) Current ratio. (4) Inventory turnover.(2) Receivables turnover. (5) Days in inventory.(3) Average collection period. (6) Current cash debt coverage.(b) Compute the following solvency ratios for the two companies and comment on the relative solvency of the two competitors.(1) Debt to total assets ratio.(2) Times interest
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statements to determine their profitability‚ liduidity and solvency. Liquidity Ratios are used by suppliers and short-term creditors such as bankers to measure the ability of an organization to pay its maturing short-term financial obligation. This is also used to determine whether the organization will be able to meet any unexpected financial need for cash. Profitability ratios are used by creditors and investors to evaluate the earning power of an organization. Profitability is used to measure the
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SUBJECT: Ratio analysis of Riordan Manufacturing Riordan manufacturing has developed as a producer of plastics as well as foam-based products. Listed below is a quick analysis of the company using liquidity‚ profitability‚ and solvency ratios. The analysis is accompanied by vertical and horizontal analysis of the balance sheet and the income statement. This examination gives anyone inquisitive a good picture of the company’s performance. The research reveals the
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Uttara in Dhaka. About Ratio Definition of Ratio: A way of expressing the relationship between one accounting result and another‚ which is intended to provide a useful comparison. Accounting ratios assist in measuring the efficiency and profitability of a company based on its financial reports. Accounting ratios form the basis of fundamental analysis. ABOUT SQUARE TEXTILES LIMITED Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second
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this sector has increased for the last few years. This study is designed to review the financial performance of this sector‚ to test its strengths and weaknesses. The financial performance of this sector is measured in terms of Ratio (Profitability‚ Liquidity‚ Solvency and Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data the author mainly relied on Annual Reports and official records
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purchase Tick-Tock for $275‚000 or continue looking for another business. This financial statement has been divided into three segments: profitability‚ liquidity and financial stability .The first part is profitability which focuses on different aspect of return on investment & evaluating operating performance ratios. And the second segment concrete on the liquidity‚ as this ratio measures a company’s ability to pay short-term obligations‚ the current ratio of 2007 shows that the firm has a good short-term
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Plant & Equipment (PP&E) between two balance sheet dates is an example of (Points : 1) | vertical analysis. solvency analysis. profitability analysis. horizontal analysis. | 2. The percent of Current to Total Liabilities is an example of (Points : 1) | vertical analysis. solvency analysis. profitability analysis. horizontal analysis. | 3. The number computed by subtracting current liabilities from current assets is: (Points
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Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets) Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity Investment Ratios Earnings per Share
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last part is an analysis of the company’s long-lived assets both tangible and intangible. PART 1: RATIO ANALYSIS Profitability According to 10-year total return diagram in the appendix‚ RIC’s total return is shown to have an overall under-market performance and thus‚ relatively low profitability. However‚ RIC’s profitability is increasing according to rising profitability ratios such as gross profit margin (from 9.53% to 10.35%)‚ pre-tax profit margin (3.07% to 4.18%) and net profit margin
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Analysis of the financial data for Under Armour Inc. & Nike Inc. 1. Liquidity | Comparison between Nike & Under Armour | | 2010 | 2009 | Current Ratio | •Both companies have a ratio that is higher than the dangerous 1.0 current ratio.•The current Ratio of Under Armour is a bit higher than Nike`s which means that Under Armour is more efficient in terms of the operating cycle or in other words the ability to turn its products into cash. | •Both companies have a ratio that is higher
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