Current Ratio Interpretation From the calculation of the current ratio it is evident that the company’s current ratio for the year 2010 is 1.30:1 ‚2011 is 1.80:1‚ 2012 is 1.54:1 and 2013 is a 1‚53:1‚ that is company’s current assets in year 2013 was Rs. 1.53 for every 1Re of current liability‚ while in the year 2012 the current asset was Rs 1.54 Re of its current liability‚ while in the year 2011 the current assets was Rs 1.80 Re of its current liability‚ and while in the year 2010 the
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Liquidity Ratios Current ratio FORMULA 2012 (31 DEC) 2013 (31 DEC) Current ratio = Current assets/ Current liabilities 137‚ 802‚ 520/43‚ 748‚ 011 = 3.15 times 140‚ 114‚ 822/ 47‚ 097‚ 947 = 2.98 times The current ratio is measured the ability to pay its liabilities in the short term. The higher current ratio‚ the company would be able paying its debt. The current ratio of Hup Seng Industries Berhad in 2012 is 3.15 times. Both current assets and current liabilities of Hup Seng Industries Berhad
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Ratio Analysis Formulas 1) Financial ratios S.no | Ratio | Formula | Ideal ratio | comments | 1 | Current ratio | Current assetsCurrent liabilities | 2:1/1.33:1 | Indicates firm’s commitment to meet financial obligations.Avery heavy ratio is not desirable as it indicates less efficient use of funds | 2 | Quick ratio | Quick assetsCurrent liabilities | 1:1 | This ratio also indicates short term solvency of a firm | 3 | Debt –Equity ratios | long term debtequity | 1:2 | Indicates long
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Chapter 12 12.4 a x t / 2s / n = 1‚500 1.984(300/ 100 ) = 1‚500 59.52; LCL = 1‚440.48‚ UCL = 1‚559.52 b x t / 2s / n = 1‚500 1.984(200/ 100 ) = 1‚500 39.68; LCL = 1‚460.32‚ UCL = 1‚539.68 c x t / 2s / n = 1‚500 1.984(100/ 100 ) = 1‚500 19.84; LCL = 1‚480.16‚ UCL = 1‚519.84 d. The interval narrows. 12.6 a x t b x t c x t / 2s / / 2s / / 2s / n = 10 1.984(1/ 100 ) = 10 .20; LCL = 9.80‚ UCL = 10.20 n = 10 n = 10 1.984(4/ 100 ) = 10 1.984(10/
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CHAPTER 3 The Competitive Environment Learning Objectives Upon completing this chapter‚ you should be able to: Identify the structural characteristics of the environment faced by the firm and how these drivers influence both competition and value creation Choose the appropriate level of specificity in environmental analysis‚ depending on the locus of the decision-making group Predict how changes occurring in the environment might influence future competition and value creation Incorporate understanding
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REVIEW PROFILES OF DIRECTORS STATEMENT OF DIRECTORS’ RESPONSIBILITIES CORPORATE GOVERNANCE 11 13 19 22 23 24 25 26 27 28 47 49 ANNUAL REPORT OF THE BOARD OF DIRECTORS ON THE AFFAIRS OF THE COMPANY AUDIT COMMITTEE REPORT INCOME STATEMENT BALANCE SHEET INDEPENDENT AUDITORS’ REPORT STATEMENT OF CHANGES IN EQUITY CASH FLOW STATEMENT TEN YEAR SUMMARY FORM OF PROXY NOTES TO THE FINANCIAL STATEMENTS i ii FINANCIAL HIGHLIGHTS HAYLEYS EXPORTS PLC ANNUAL REPORT 2011-2012 Turnover (Rs
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Accounting ratios are relationships expressed in mathematical terms between the figures which are connected with each other in some manner. Obviously‚ no purpose is served by comparing two sets of figures which are not at all connected with each other. Moreover‚ absolute figures are also unfit for comparison. The following are the different classification of ratios: 1. Traditional classification: The traditional classification has been on the basis of the financial statement to which the determinants
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environment affect individual firms and industries through the microeconomic factors of demand‚ production‚ cost‚ and profitability. Drawing on current business publications‚ find some updated facts for each case that support this theme. Drawing on current business publications and the two cases in this chapter it is prevalent that several changes in the macro environment have had an effect on the profitability of individual firms and industries. The text states that (Farnham‚ 2010 page 459)‚ downturns in economic
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A useful tool If someone gets into people’s house or wants to robbery people in some places with no one appear‚ which would people rather have‚ a handgun or telephone? If policeman cannot get there in time to save people’s life or no one can give people assistance‚ what would people rather do? Should they ask to god for help or willing to be a victim? It is very ridicules. Obviously‚ the best choice for people protect themselves is taking a handgun‚ because the first line of defense is people.
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In finance Ratio analysis is carried out to judge the liquidity of the organization. It helps the analysts to find if a company is capable enough to pay its liabilities. Moreover it also helps to show the operating efficiency and internal return of an organization. Keep in mind that the ratio is good or bad only if it is compared to the industry in which the organization is operating in. Some of the important ratios are: * Current Ratio * Asset Test Ratio * Return on Asset *
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