and analyzing key financial ratios. Another important aspect of financial analysis is the comparison of actual financial conditions with expected financial conditions. Expected conditions may be represented by: a. Predetermined standards b. Past performance c. Competitor’s performance d. Industry average Financial Statements Although are essentially historical documents‚ may still provide us valuable information Approach to FS Analysis 1. Short-term solvency analysis Refers to the analysis
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Cleaning and Polishing Hard Gelatin Capsules 1. Salt Polishing- NaCl 2. Cloth Dusting- The capsules after the filling operation are rubbed with cloth. This gives shine to the capsules along with elimination of the materials that are tough to remove. 3. Brushing- This is done with the help of brushes and generally vacuum is employed inorder to remove the dust. 4. Pan Polishing- Acela-cota pan 1. Pan polishing: Accelacota coating pan is generally employed for this process. In order
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Financial Reporting II Review of Ratio Analysis Ratio analysis is a useful tool for analyzing financial statements. Calculating ratios will aid in understanding the company’s strategy and in understanding its strengths and weaknesses relative to other companies and over time. They can sometimes be useful in identifying earnings management and in understanding the effect of accounting choices on the firm’s reported profitability and growth. Finally‚ the ratios help in obtaining a better understanding
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FINANCIAL STATEMENTS Accrual-based approach – revenues are recorded at the point of sale and costs when they are incurred‚ not necessarily when a firm receives or pays out cash Cash flow approach – used by financial professionals to focus attention on current and prospective inflows and outflows of cash 1. Balance sheet a. Assets Cash and Cash Equivalents Marketable securities Accounts receivable Inventories Net property‚ plant and equipment Intangible assets b. Liabilities Accounts
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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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19 (Solvency And Liquidity Analysis) The Warnaco Group Inc.declared bankcruptcy in June 2001 soon after publishing its financial statements for its year ended December 31‚2000.Warnaco Group’s financial data for 1997 through 1999 are presented in Exhibit 4P-4. a) Discuss whether the information provided in the exhibit provides any warning of the company’s eventual demise.Your answers should be based on an analysis of Warnaco’s 1998-1999 activity‚solvency‚liquidity‚and profitability ratios.
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purpose of financial statement analysis is to determine the meaning and significance of the data contained in the statements so that a forecast may be made of the prospects for future earnings‚ expected dividends and the ability of the business to pay interest and debt as it matures. Financial statement analysis involves rearrangement of financial information‚ comparison‚ analysis and interpretation of that information. Financial statement analysis can be external or internal; horizontal or vertical;
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Liquidity Ratios 2012 2011 Current Ratio 20‚025/24‚025=0.83 17‚003/27‚075=0.63 Quick Ratio (7‚138+10‚744)/24‚025=0.74 (6‚252+9‚259)/27‚075=0.57 Activity Ratios Receivable Turnover 46‚417/((10‚744+9‚259)/2)=4.6 45‚884/((9‚259+8‚784)/2)=5.1 Inventory Turnover 31‚546/((486+537)/2)=61.7 30‚814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7‚003/((139‚576+151‚220)/2)=4.8% 7‚870/((151‚220+156‚985)/2)=5.1% Rate of Return on (7‚003-56)/((78
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METHODIST UNIVERSITY COLLEGE GHANA FACULTY OF BUSINESS ADMINISTRATION LEVEL 300 FINANCIAL ACCOUNTING IV RATIO ANALYSIS OF FML UN-AUDITED ACCOUNTS OF 2010 AND 2011 Name Index No Programme 1. Osumanu-Sulemana Amidu BBAA/ET/123001 Accounting 2. Emmanuel Addae BBAA/ET/ 117726 Accounting 3. Benedicta Mawunu
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Nadarajan AC089637 3 Thayasiri Sumaran AC089676 4 Khesanivarni Balakrishnan AC089702 Table of Content Pages 1.0 Introduction 3 2.0 Company Background 4 3.0 Profitability Ratio 5-6 4.0 Liquidity Ratio 7-8 5.0 Efficiency Ratio 9-10 6.0 Gearing Ratio 11-12 7.0 Shareholder Ratio 13-14 8.0 Cash Flow 15 9.0 Conclusion 16 10.0 Reference 17 11.0 Appendix 18 1.0 INTRODUCTION British American Tobacco (informally BAT) is a British multinational tobacco
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