FINANCIAL RATIOS Financial ratios are indicators of a company’s performance as discernable from the company’s Balance Sheet and income Statement. We will discuss some of the simple ratios of a company and talk about their significance. Liquidity Ratios: Show the company’s ability to pay of its current liabilities from its current assets. 1. Current Ratio Current assets should be significantly higher than current liabilities so that the current ratio is higher than 2:1. 2. Quick Ratio (Acid
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I chose to do the comparison between ‘The Tyger’ and ‘The Lamb’ because they both have similar themes but are concerned with very different aspects of life. ‘The Tyger’ concentrates on the dangers to be faced in life and nature while ‘The Lamb’ celebrates nature as seen through the innocent eyes of a child. Blake examines different‚ almost opposite or contradictory ideas about the natural world‚ its creatures and their Creator. William Blake is the narrator of both poems which emphasizes his
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I have read two extracts from two books; Atonement by Ian McEwan and A Tale of Two Cities by Charles Dickens. The following is a comparison of the two texts. The two stories are written in different centuries. A tale of two cities was written in the 19th century‚ and Atonement was written in the 21st. The english language develops and all the time‚ and in 200 years it changes quite a bit. That is one of the reasons to why the older text is severely harder to understand. When you are not a native
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A Comparison Between the Sunnis and Shiites Have you ever wondered about other religions that are out there and why they are out there? I have and that is why I chose to write my paper on the Sunnis and Shiites. Read on to learn more about a brief history and then I will break each of them into separate religions. In books written on Islam the word "hadith" usually refers to the sayings or "traditions" which have been given from the Prophet. Muslims hold these to be the most important source of
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DETERMINING RATIO DECIDENDI – EFFICACY OF WAMBAUGH’S TEST I. INTRODUCTION Judicial precedents are an important sources of law. They are the former judgements of the superior courts which the judges in common law countries are bound to follow. This bindingness of previous decisions on the lower courts is partly due to high status which the judges enjoyed in England and also partly because of the importance of the issues which they decided. Judicial decisions were given a high authority as
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FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company’s pricing strategy but it does give a good indication of financial health. Without an adequate gross margin‚ a company will be unable to pay its operating and other expenses and build for the future. In general‚ a company’s gross profit margin should be stable
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Financial ratios are very important tools that users of the financial statements can utilize to assess an organizations financial health. This paper thoroughly analyzes the performance of the Universal Health Services and assesses the its current financial health. In this regard‚ key financial ratio will be suggested which can be utilized to assess the Universal Health Services financial condition. Universal Health Services ability to meet both its short as well as long-term financial obligations
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http://www.investopedia.com/university/ratios/liquidity-measurement/default.asp LIQUIDITY RATIOS: The first ratios we’ll take a look at in this tutorial are the liquidity ratios. Liquidity ratios attempt to measure a company’s ability to pay off its short-term debt obligations. This is done by comparing a company’s most liquid assets (or‚ those that can be easily converted to cash)‚ its short-term liabilities. In general‚ the greater the coverage of liquid assets to short-term liabilities the
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Differential Factors Between Private Companies and Public Companies Generally speaking Financial Accounting Standard Board (FASB)’s primary purpose is to develop General Accepted Accounting Principles (GAAP). GAAP might not concern the whole areas of accounting criteria‚ FASB look up and adjust accounting standard to make sure standards have been updated to follow current situation. On July 31‚ 2012‚ FASB issued an Invitation to Comment‚ which reviewed key areas of the Private Company Decision-Making
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LIQUIDITY Liquidity ratios are used to determine a company’s ability to meet its short-term debt obligations. Investors often take a close look at liquidity ratios when performing fundamental analysis on a firm. Since a company that is consistently having trouble meeting its short-term debt is at a higher risk of bankruptcy‚ liquidity ratios are a good measure of whether a company will be able to comfortably continue as a going concern. Working Capital Working capital is the amount by which the
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