1 . The percentage analysis of increases and decreases in individual items in comparative financial statements is called a. | vertical analysis | b. | solvency analysis | c. | profitability analysis | d. | horizontal analysis D | 2. Which of the following below generally is the most useful in analyzing companies of different sizes a. | comparative statements | b. | common-sized financial statements | c. | price-level accounting | d. | audit report |
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3.ii.c Interest Coverage Ratio 14 3.ii.d Debt to Capital Ratio 15 3.iii Turnover Ratio 16 3.iii.a Receivable Turnover Ratio 17 3.iii.b Accounts Receivable in Days Ratio 18 3.iii.c Inventory Turnover Ratio 19 3.iii.d Inventory Turnover in Days Ratio 20 3.iii.e Total Asset Turnover Ratio 21 3.iv Profitability Ratio 22 3.iv.a Net Profit Margin Ratio 23 3.iv.b
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acid test ration. Receivable Turnover: 2009 | 2010 | 59.3 | 69.1 | Analysis: In receivable turnover‚ higher turnover is better for a company. The above table shows how many times each company was able to collect its debit. Here we can see that in 2009 the company was not less turnover comparing to 2010. The increasing receivable turnover ratio of this company indicates that the collection of account receivable of this company is efficient. Inventory Turnover: 2009 | 2010 |
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The Fundamentals of Working Capital Management Working Capital refers to the company’s current or short-lived assets. This includes cash‚ marketable securities‚ notes receivable‚ account receivable‚ inventories and other current assets. Non-current assets are referred to as capital assets. These are long-term assets and are mostly depreciable in nature. In evaluating an investment in capital assets‚ the future cash flows‚ the risk of those cash flows as well as the opportunity cost of the funds
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36‚000 40‚000 = 44‚000 40‚000 = 1.10 The acid test ratio or quick ratio measures the company’s ability to meet current obligations based on the most liquid assets such as cash‚ marketable securities‚ and accounts receivable. The quick ratio of 1.10 indicates that the company has $ 1.10 in liquid assets for each $ 1.00 of current liabilities. 3. Debt-to-Equity Ratio Debt – to-Equity Ratio = Total Liabilities _ Shareholders Equity =
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successfully a company is utilizing its assets to generate revenues. Inventory Turnover= COGS/ Average inventory 1‚428‚730/ 18‚660= 76.57 Indicate a shortage or inadequate inventory levels‚ which may lead to a loss in business. Average days to sell the inventory= 365 days/ inventory turnover ratio 365/ 76.57= 4.8 Measure of the number of times inventory is sold or used in a time period (a year). A low turnover rate might point to overstocking‚ obsolescence‚ or deficiencies in the
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Comparing the financial performance between Wal-Mart and Amazon by the metrics : Return on Equity Ratio(ROE): This ratio demonstrates how efficiently the business is utilizing and deploying the equity‚ either invested in the business or generated by the business‚ to generate profits. ROE= Net income/ avg shahloder equity ROE in Wal-Mart stores is: 2.726840403 A ration of 272.6% would show the business is earning $2.73 in pretax or operating profit for each $1of equity employed in the business
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Microsoft - Ethics and Compliance Microsoft Corporation provides a wide range of services and products worldwide. They are responsible for developing‚ manufacturing‚ licensing‚ and supporting a large range of software products made for computing devices (Microsoft‚ 2007). They are part of the technology sector‚ and are a key player in the software & programming industry (Google‚ 2008). Microsoft is a United States based multinational company‚ with employees around the world. Team A will analyzing
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J.J. Weygandt and T.D. Warfield). These ratios include receivable turnover‚ inventory turnover‚ and asset turnover. Receivable turnover ratio: the receivable ratio of GM has increased from 14.46 in 2012 to 17.82 in 2013. This is a significant increase because this ratio decreased from 14.94 in 2011 to 14.46 in 2012. It means that GM is getting better in collecting its account receivables. (Receivable ratio- Ready Ratio) Inventory turnover ratios: the inventory ratio of GM has slightly increased
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University of Dhaka Faculty of Business Studies Department of Finance Course Title: Financial Accounting and Reporting Course Code: F – 504 Submitted By: Sifat Monjur Shamrat Roll: 24040 Submitted To: Samia Sultana Tani Assistant Professor Department of Finance Faculty of Business Studies University of Dhaka Date of Submission: Sunday‚ August 18‚ 2013 August 18‚ 2013 To Samia Sultana Tani Assistant Professor Department of Finance
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