1. Executive Summary This report is a summary of the comparison of ratio analysis of two companies Morrisons Plc. and Sainsbury Plc. for the accounting period 2010-2011 and 2011-2012. It focuses basically on various ratios such as Profitability Ratio‚ Liquidity Ratio‚ Gearing Ratio‚ Efficiency Ratio and Investors Ratio. This ratios will give us an overview of the companys financial performance of Morrison and Sainsbury and will even help us to compare both the companys performance for 2011
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Solvency Ratios Solvency ratios are used by long-term creditors and stockholders to measure a company’s debt-paying ability‚ particularly its ability to pay interest as it comes due and to repay the face value of debt at maturity (Weygandt‚ 2010). There are two types of solvency ratios that provide information about debt-paying ability; debt to total assets ratio and times interest earned (also called interest coverage). Debt to assets ratio Formula: Divide total liabilities by total assets.
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Accountant Subject: Financial Analysis of CFT Ltd Date: 4 October 2012 Liquidity ratio: It’s focus on the solvency of the business and includes two ratio- 1. Current ratio 2. Quick assets ratio If the liquidity level of a company is high then it means that the company has or can generate enough cash to meet its short term requirements for cash- it can easily pay its bills on time. On the other hand if the liquidity level is low then the company has difficulty in generating enough cash to
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International Review of Business Research Papers Vol. 8. No.4. May 2012. Pp.157 – 176 Bank Profitability: The Case of Bangladesh Mohammad Abu Sayeed*‚ Piyadasa Edirisuriya** and Mohammad Hoque*** This study attempts to examine the impact of asset and liability management on the profitability of commercial banks in Bangladesh. Commercial banks are segmented into high profitable and low profitable and private and public banks. While applying Statistical Cost Accounting (SCA) methods
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Issue. 1‚ January 2011(pp.35-44) Liquidity Risk Management: A comparative study between Conventional and Islamic Banks of Pakistan Muhammad Farhan Akhtar‚ Khizer Ali‚ Shama Sadaqat Hailey College of Commerce‚ University of the Punjab‚ Lahore‚ Pakistan. ABSTRACT The role of Bank is diversified into financial intermediaries‚ facilitator and supporter. Yet the banks place themselves as a trusted body for the depositors‚ business associates and investors. Liquidity risk may arise from these diverse
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Profitability Ratios Profitability ratios measure two aspects of a corporation’s profits: (1) those elements of operations that contribute to profit and (2) the relationship of profit to total investment and investment by stockholders. The first group of profitability ratios [gross profit (or gross margin) percentage‚ operating margin percentage‚ and net profit margin percentage] expresses income statement elements as percentages of net sales. The second group of profitability ratios (return on
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PROFITABILITY RATIOS One of the most important measures of a company’s success is its profitability. However‚ individual figures shown in the income statement/profit and loss account for gross profit and net profit mean very little by themselves. When these profit figures are expressed as a percentage of sales‚ they are more useful. This percentage can then be compared with those of previous years‚ or with the percentages of other similar companies. Changes in the gross profit percentage ratio
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CUSTOMER PROFITABILITY ANALYSIS: CHALLENGES AND NEW DIRECTIONS Summary This article presents the concept of modifying cost accounting system in order to provide measurements from a customer profitability viewpoint. Most management accounting systems focus on products‚ departments or geographical areas‚ which have little to do with customers. A questionnaire was sent to marketing managers and marketing controllers and interviews with respondents. Much of this article draws on qualitative responses
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Liquidity‚ liquidity‚ liquidity….. In the context of the events of the last few years just how important is liquidity to the survival and well-being of Financial Institutions? Some believe it has a greater influence on events than Capital! Discuss. (In this assignment you need to outline the role of liquidity‚ issues arising when liquidity is scarce and compare the role of liquidity to that of Capital but most importantly give your own view on these matters) Role of Liquidity Liquidity can
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Profitability Profitability is the relationship between profit and sales and helps managers to determine how well each dollar of sales generates profits The level of profitability depends on: 1. The volume of sales 2. The percentage mark-tup applied 3. The level of expenses incurred There are three ratios to measure profitability: Gross Profit Ration (GPR) Is derived from the income statement It shows how well the company is maintaining and adequate margin between sales and purchases
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