RATIO ANALYSIS Financial ratios are useful indicators of a firm’s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm’s financials to those of other firms. In some cases‚ ratio analysis can predict future bankruptcy. Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used: 1. Liquidity ratios
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Debt Ratio Debt Ratio • defined as the ratio of total debt to total assets‚ expressed in percentage‚ and can be interpreted as the proportion of a company’s assets that are financed by debt. • Measures the proportion of total assets financed by the firm’s creditors. The higher this ratio‚ the greater amount of other people’s money being used to generate profits. Formula: • The debt ratio is calculated by dividing total debt by total assets. Debt Ratio = Total Debt Total Assets Examples •
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Running Head: RATIO ANALYSIS Starbucks Corporation & McDonalds Corporation McDonald’s Corporation McDonald’s Corporation operates in the food service industry. The company has its restaurants in more than 100 countries of the world. McDonald’s‚ the world’s largest food chain is headquartered in U.S. having an employee population of 390000 (About McDonald’s...‚ 2008). Starbucks Corporation Seattle based‚ Starbucks Corporation is the leading coffeehouse chain in the world. The company has its
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Introduction: Sushi King. Sushi King first opened their doors in 1995‚ pioneering a new era of Japanese cuisine in Malaysia with their unique ‘Kaiten Sushi’ or ‘Revolving Sushi’ with quick service restaurant concept. Offering a wide variety of sushi along with an expansive menu of other Japanese food at affordable prices in a friendly‚ cosy environment‚ Sushi King quickly gained popularity to become a favourite amongst locals and foreigners alike. From a single outlet in Kuala Lumpur‚ they have
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1.0 INTRODUCTION Herbalife Ltd are a global nutrition company founded in 1980 that sells weight management‚ healthy meals and snacks‚ sports and fitness‚ energy and targeted nutritional products as well as personal care products. Herbalife distributes and sells its products through a network of independent distributors‚ using the direct selling channel. As of December 31‚ 2012‚ Herbalife sold their products in 88 countries to and through a network of approximately 3.2 million independent distributors
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BRAND PERCEPTION OF DALMIA CEMENTS IN RELATION TO COMPETING BRANDS AND MARKET ANALYSIS OF 4(P) AND STUDY THE FACTORS AFFECTING THE SALES OF DALMIA CEMENTS TO SUGGEST WAYS TO ENHANCE THE MARKET SHARE IN NON-TRADE SEGMENT BY VYOM SHAKTI NIGAM PG20095502 DALMIA CEMENTS (BHARAT) LIMITED A REPORT ON BRAND PERCEPTION OF DALMIA CEMENTS IN RELATION TO COMPETING BRANDS AND MARKET ANALYSIS OF 4(P) AND STUDY THE FACTORS AFFECTING THE SALES OF DALMIA CEMENTS TO SUGGEST WAYS TO ENHANCE
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Ratio‚ Vertical‚ and Horizontal Analyses XACC/280 May 8‚ 2012 Analyzing financial statements can help a company find out important financial information about itself and other competitors in the industry. There are three important tools that evaluate a company’s liquidity‚ profitability‚ and solvency. This information is relative to banks‚ creditors‚ and for internal gain. There are three commonly used tools to help investigate and generate the results using
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alysis of Analysis of Analysis of Analysis of Analysis of Analysis of Analysis of Analysis of Financial RatiosFinancial RatiosFinancial RatiosFinancial Ratios Financial Ratios Financial RatiosFinancial RatiosFinancial Ratios Financial Ratios - Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Uchumi Supermarkets Financial Ratios are relative magnitudes of select numeric
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Ratio Analysis: Liquidity(Times): | 2008 | 2007 | 2006 | Current Ratio | 4.11 | 3.65 | 2.95 | Quick Ratio | 3.92 | 3.44 | 2.73 | NWC to Asset Ratio | 0.17 | 0.15 | 0.13 | Cash Ratio | 3.23 | 2.70 | 2.03 | NWC to Sales Ratio | 1.71 | 1.43 | 1.04 | NWC($) | 9215702577.00 | 7220848206.00 | 5205523576.00 | Average Daily Cash Expenses | 7537175.82 | 7160555.21 | 6768509.99 | Interval Measure(in days) | 1270.94 | 1029.86 | 798.11 | Interpretation: * According to current ratio
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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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