Ratio Analysis Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity‚ profitability‚ and solvency. Liquidity Ratios Liquidity ratios measure the ability of a company to repay its short‐term debts and meet unexpected cash needs. Current ratio The current
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The Golden Ratio By : Kaavya.K In mathematics and the arts‚ two quantities are in the golden ratio if the ratio of the sum of the quantities to the larger quantity is equal to the ratio of the larger quantity to the smaller one. The golden ratio is an irrational mathematical constant‚ approximately 1.6180339887. Other names frequently used for the golden ratio are the golden section and golden mean. Other terms encountered include extreme and mean ratio‚ medial section‚ divine
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fluctuation appeared. Ratio analysis Year/ratio 2011 2012 2013 Industry average Current ratio 0.90 0.77 0.82 Quick ratio 0.78 0.65 0.70 Gross profit ratio 55.6 51.7 54.6 Receivable turnover ratio 13.59 13.95 12.49 Inventory turnover ratio 18.45 19.25 19.51 Net profit ratio 1.74 -1.64 0.03 Debt to equity ratio 0.89 0.92 0.88 Asset turnover ratio 0.70 0.71 0.77 Current ratio is always larger than quick ratio‚ it may because that inventory
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RATIO ANALYSIS AS A TOOL FOR DETERMINING CORPORATE PERFORMANCE ( A STUDY OF SELLECTED BANKS IN NIGERIA) RATIOS ANALYSIS AS A TOOLS FOR DETERMINING CORPORATE PERFORMANCE :( A STUDY OF SELECTED BANKS IN NIGERIA) BEING A RESEARCH PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) OF AHMADU BELLO UNIVERSITY‚ZARIA NIGERIA DEPARTMENT OF BUSINESS ADMINISTRATION‚
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Financial Ratios The creditable performance calculation for the Valley of the Sun United Way (VSUW) is used to guarantee that their organization will perform at their most likely current ratio‚ long-term solvency ratio‚ contribution ratio‚ and general and management/expense ratio (Goetsch & Davis‚ 2010). The current ratio will enable VSUW to easily see their current expenses that may be aquired and make sure that the organization has enough resources to pay all of their current obligations
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Golden Ratio The theory of the Italian mathematician Leonardo Pisano is extremely present today. While he was trying to sort out the number of rabbits that mated in a year‚ he discovered a series of numbers‚ that are profoundly consistent in man‚ nature & animals. This discovery was extraordinary‚ but he also found that the ratio always resulted in 1.618. Although it is called differently‚ this ratio is often called „the golden ratio“. It’s
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Microsoft Oracle Interpretation and Comparison between the two companies’ ratios (Reading the Appendix of Chapter 13 will help you prepare the commentary) According to this Oracle gives more per share to their stock holders then Microsoft does. Earnings per share As given in the income statement $2.73 Basic Common $1.69 Both companies have the ability to pay back their short term debts. Current ratio Current assets Current liabilities $74‚918 $28‚774 = 2.60 $73
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Financial Results FIN/571 July 22‚ 2013 Interpreting Financial Results Liquidity: Current Ratio Parrino‚ Kidwell‚ & Bates (2012) detail the current ratio as current assets divided by liabilities. The current ratio identifies a firm’s potential to pay short-term liabilities; higher liquidity is a good sign for potential creditors (Parrino et al.‚ 2012). At the same time‚ however‚ the current ratio should not greatly exceed benchmarks of other competitors (Parrino et al.‚ 2012). This could be
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Ratio Analysis Name: Agbasimelo E. Ifeanyi Roll no: @00316215 Instructed by: David Wright PART A PAGE 1.1 Sales turnover index 4 1.2 Gross profit margin 4 1.3 Net profit margin 5 1.4 Return on capital employed 5 1.5 Current ratio 6 1.6 Acid test ratio 7 1.7 Interest cover ratio
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RATIO ANALYSIS Ratio analysis is a key dimension of financial management‚ suggesting a relationship between profit and loss as mentioned in the balance sheet of an organization. In Latin ‘ratio’ means reason. In English ‘ratio’ means relationship. Ratio analysis is defined as “the establishment of a reasoned relationship” of a fixed variable character between measurements of certain phenomenon having some kind of linkage. A ratio shows the arithmetical relationship between two figures
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