CHAPTER 3 ANALYSIS OF FINANCIAL STATEMENTS R ATIO ANALYSIS LIQUIDITY ASSET MANAGEMENT DEBT MANAGEMENT PROFITABILITY 4-1 FINANCIAL RATIO ANALYSIS DEFINITION the calculation and comparison of ratios which are derived from the information in a company’s financial statements. Why are ratios useful? Ratios standardize numbers and facilitate comparisons. Ratios are used to highlight weaknesses and strengths. Ratio comparisons should be made through time and
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A CASE STUDY OF DELTA AIRLINES Creative Media Services Research Team: Todd Beals‚ Matt Tucker‚ Mary Vick 12/02/03 Mission – to be an air carrier with superior customer service that provides air transportation for passengers and cargo‚ utilizing low-cost carriers and regional jets throughout the United States and around the world. SWOT ANALYSIS Strengths: 1. 3rd largest mega carrier; established name; excellent reputation; worldwide brand recognition. Delta has been among the DOT’s top
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QANTAS CASE ANALYSIS * Introduction Qantas or as it is nicknamed “The Flying Kangaroo” is the largest airline service that runs continuously and the second oldest in the world. It was established in 1920 as Queensland and Northern Territory Aerial Services Limited and first flew internationally in 1935 (Hanson‚ 2011). The growth of Qantas has been substantial with the most significant progression being the Australian government selling its domestic carrier Australian Airlines to Qantas in
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Introduction of Ratio MEANING OF RATIO: A ratio is one figure express in terms of another figure. It is a mathematical yardstick that measures the relationship of two figures‚ which are related to each other and mutually interdependent. Ratio is express by dividing one figure by the other related figure. Thus a ratio is an expression relating one number to another. It is simply the quotient of two numbers. It can be expressed as a fraction or as a decimal or as a pure ratio or in absolute
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--------------------------------------------------------------------------- 6 * Profitability ratio ---------------------------------------------------------- 6 * Liquidity ratio -------------------------------------------------------------- 9 * Gearing ratio --------------------------------------------------------------- 11 * Debt ratio ------------------------------------------------------------------- 12 * Investment ratio ---------------------------------------------------------- 13 Limitation
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ACCOUNTANTS OF PAKISTAN REPORT ON RATIO ANALYSIS OF M/S RANI LIMITED PREPARED FOR: Board of Directors PREPARED BY: Management Accountant TABLE OF CONTENTS Particulars Executive Summary Introduction Page No. 3-4 5 Financial Position and Ratio Analysis 6 - 10 Suggestions & Conclusion 11 - 12 Appendices Horizontal & Vertical Analysis of Income Statement Comparative Ratios & averages Trend of Ratios & Percentages Graphical Representation
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Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days‚ weeks‚ or months‚ and within one year. This contrasts with durable goods or major appliances such as kitchen appliances‚ which are generally replaced over a period of several years. FMCG have a short shelf life‚ either as a result of high consumer demand
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JetBlue Airlines Strategic Management Case Analysis Introduction to the Company History of the Firm JetBlue was established in 1999‚ and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million‚ the most ever raised for a start-up airline‚ from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV‚ a first in the industry. In 2004 the
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Understanding SWOT Analysis Why use the tool? SWOT Analysis is an effective way of identifying your Strengths and Weaknesses‚ and of examining the Opportunities and Threats you face. How to use tool: To carry out a SWOT Analysis‚ write down answers to the following questions. Where appropriate‚ use similar questions: Strengths: * What advantages do you have? * What do you do well? * What relevant resources do you have access to? * What do other people see as your strengths
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Dell’s ROE and ROA have different patterns through the life of the case. Dell’s ROA has ranged from a high 18.2% in 1999 then gradually drop to 9.2% in 2008. Dell’s ROE has ranged from 43.7% in 1999 to 61.2% in 2008. Both ROA and ROE dropped significant amount in 2001. Dell’s ROE and ROA are well above the Federal Nominal 10-year T bills rates in all yeas and exceed HP’s ROE and ROA in all years. In 2001‚ HP’s ROE and ROA drop to the lowest point through the life of the case‚ because HP acquired Compaq
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