Ratio Analysis Assignment-Danielle Goettl Using the financial ratios studied in this course‚ prepare a financial analysis of Marriot’s financial results for 2007-2011. Your analysis should address the following: 1. Income Statement: a. What trends do you see in Total Revenue? The trends that I see are that the total revenue for Marriot has stayed fairly consistent over the last five years. The smallest revenue year was in 2009 and but it wasn’t hugely drastic. b. How does
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investors need to recognize or to analyze the performance of the company properly before invest and it is not an easy job for an outsider to understand. By doing the financial statement analysis‚ it will help the analyst to understand the performance of any company. The analysis of financial statement is a study of establishing meaningful relationship between various financial facts and figure given in financial statement. The basic financial statement included balance sheet and income statement which
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The article is all about the essential financial ratios to evaluate the health care industry such as hospitals and pharmaceutical company regardless of the stock of health care companies. There are three key ratios such as cash flow coverage ratio‚ debt to capitalization ratio‚ and operating margin. These ratios reveal how many liabilities and how much debt the health care companies have and how much they operate a margin. First‚ the cash flow coverage ratio is crucial to hospitals and having adequate
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RATIO ANALYSIS Ratio analysis is a key dimension of financial management‚ suggesting a relationship between profit and loss as mentioned in the balance sheet of an organization. In Latin ‘ratio’ means reason. In English ‘ratio’ means relationship. Ratio analysis is defined as “the establishment of a reasoned relationship” of a fixed variable character between measurements of certain phenomenon having some kind of linkage. A ratio shows the arithmetical relationship between two figures
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RATIO ANALYSIS (ALL VALUES IN Rs. MILLION) 1. GROSS PROFIT MARGIN (%): GROSS PROFIT = NET SALES – COGS = TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs) = 53107 – (22510+21598+1025) = 7974 GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497% 2. RETURN ON ASSET(RoA) RETURN ON ASSET = (PAT/TOTAL ASSET)*100 = (4606/63454)*100 = 7.258% This indicates that around 7.3% of all assets have been utilized
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FINANCIAL STATEMENT ANALYSIS Paula Bianca Formantes Financial Analysis The process of understanding the profitability and risk of a firm through an in depth review or study of the basic financial statements‚ by the use of different tools and techniques. Several Financial Analysis Techniques: 1. Horizontal Analysis 2. Vertical Analysis 3. Ratio Analysis BALANCE SHEET SAN MIGUEL CORPORATIOS CURRENCY IN MILLIONS OF PESOS DEC 31 2011 DEC 31 2012 ASSETS LIABILITIES & EQUITY Cash And Equivalents
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INTRODUCTION Absence is the failure of a worker to report for work when he is scheduled to work. A worker is to be considered as scheduled to work when the employer has work available for him and the worker is aware of it. A worker is to be treated as absent for purpose of this absenteeism. Statistics even when he does not turn up for work after obtaining prior permission any worker who reports for duty even for a part of the day or shift should not be‚ counted among absentees. The statistics
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b) Net income*asset turnover*tax rate c) Return on Assets (ROA)*financial leverage d) Both a) and c) 2. Which of the following is true a) Return on Assets is influenced by financing activities b) ROE is not affected by financial structure c) Profit margin is a measure of asset efficiency d) None of the above 3. Assume that cost of goods sold for a company consists only of variable costs and gross margin is = (revenue – cost of goods
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INTERPRETATION OF FINANCIAL STATEMENTS Ways of interpreting financial statements - Using individual items contained in financial statement. - Using ratios computed from items contained in Financial Statement (Ratio analysis) Reasons for interpreting accounts Accounts have to be analyzed and interpreted for the following logical points (1) Evaluation of the trading performance of a firm in order to have a measure of the quality of management running it. (2) Appraisal and monitoring
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ANALYSIS OF FINANCIAL STATEMENTS Financial statement analysis is the study of relationships between the elements of the same statement or different financial statements and the trend of these elements. The 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
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