As we can see above‚ Honda is maintaining its inventory by cost of goods sold with average inventory 7.03times to 7.14 times during its annual year. High inventory turnover meant that replenishing the cash on quick basis and lower the risk of becoming stuck with obsolete inventory. Whereas Toyota’s inventory turnover is decreasing by 15.4times to 13.06 times‚ which indicates that it is holding its inventory longer than the previous 2015 which shows poor inventory management or poor sales. Excess
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major categories of ratios‚ and what questions do they answer? * Liquidity: Can we make required payments as they fall due? * Asset management: Do we have the right amount of assets for the level of sales? * Debt management: Do we have the right mix of debt and equity? * Profitability: Do sales prices exceed unit costs‚ and are sales high enough as reflected in NPM‚ ROE‚ and ROA? * Market value: Do investors like what they see as reflected in P/E and M/B ratios? 2. What is
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Industry Classification United Technologies Corporation (UTX) has 5 different major segments. These five segments can be broken down into three major industries. Pratt & Whitney‚ Hamilton Sundstrand‚ and Sikorsky Helicopters can be classified as Aerospace/Defense (AEROD). Carrier can be grouped in the Heating & Air Conditioning Equipment Manufacturing Industry (HVAC). The Otis segment belongs to the Elevator‚ Millwright & Machine Rigging Contractors Industry. The company as a whole
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Ratio Analysis: When evaluating a stock five types of ratios are considered: firm value ratios‚ profitability ratios‚ activity ratios‚ financial leverage ratios and liquidity ratios. After completing the proper calculations‚ assessments of the stock can be prepared. Starting with firm value ratios‚ Under Armour has earned a net worth of $1‚259‚559‚000. The higher the number‚ the more valuable the firm is on paper‚ and to Under Armour‚ this number is fair compared to other competitors in the
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Ratio analysis of financial statements EXECUTIVE SUMMARY For the purpose of ratio analysis of financial statements ‚ we have choosed 6 cement industries i.e. ➢ Lucky cement ➢ Fauji cement ➢ Bestway cement ➢ Dadabhoy cement ➢ Maple leaf cement ➢ Attock cement We have calculated following categories of ratios: 1. Liquidity ratios 2. Asset management ratios 3. Debt management ratios
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Corporate Characteristics Proposal Katherine Collinge‚ Moses Gatson‚ Tanya Mueller‚ and Terri Sturgeon University of Phoenix ACC/363 Financial Accounting II Bob Wells April 27‚ 2009 Corporate Characteristics Proposal Introduction here Various Forms of Business Organizations Before starting a new business‚ several decisions such as its legal structure must be made first. Five basic entity types exist in which to structure a business. These types consist of sole
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DELTA AIR LINES‚ INC. Consolidated Balance Sheets | | | | | | | | | | | | |December 31‚ | | |(in millions) | |2008 | | |2007 | | |ASSETS
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3 February 17‚ 2013 The article‚ “The Sharpe Ratio and the Information Ratio”‚ by Deborah Kidd is about the original risk-adjusted performance measure and they are Sharpe ratio and the Information Ratio. William Sharpe designed the first performance metric to insolate excess return per unit of total risk taken. The Sharpe ratio shows whether a portfolio ’s returns are due to smart investment decisions or a result of excess risk. The Sharpe ratio measure dividends average portfolio excess return
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Session 15: Limitation of Ratio Analysis Learning Objective Explain to the participants on the limitation of ratio analysis. Important Termss Creative accounting. Accounting Policies. Limitations of Ratios Accounting Information Different Accounting Policies The choices of accounting policies may distort inter company comparisons. Example IAS 16 allows valuation of assets to be based on either revalued amount or at depreciated historical cost. The business may opt not to revalue
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Southwest Airline Strategy Implementation Executive Summary An analysis of Southwest Airlines strategic controls has been conducted in order to determine if these controls match‚ and or enhance‚ the companies design and strategy. The company structure‚ culture‚ and human resources have been taken into consideration. What was found‚ was that Southwest has a strong culture‚ which ties most of the strategies together. Supervisors and employees work side by side‚ which promotes trust and understanding
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