Ratio Analysis: 2009 | 2010 | 0.53 | 0.51 | Current Ratio: Analysis: 2:1 is the benchmark of current ratio. Here in 2007 current asset is 0.53 against 1 current liability. In every year the company is unable to increase their current ration. Because the current ratio in 2010 decreases to 0.51. The company has a small amount of current asset for each amount of current liability in every year and its improvement was not that much remarkable. Though the company never crossed
Premium Balance sheet Inventory Financial ratios
where firms must comply with numerous government labor and tax regulations. Most firms‚ however‚ operate in the small-scale “unorganized” sector where regulations are less stringent and more easily evaded. The unique structure of the Indian textile industry is due to the legacy of tax‚ labor‚ and other regulatory policies that have favored small-scale‚ labor-intensive enterprises‚ while discriminating against larger scale‚ more capital-intensive operations. The structure is also due to the historical
Premium Financial ratio Financial ratios Investment
Ratio decidendi and obiter dicta Learning objectives At the end of this module‚ you will be able to: * distinguish between ratio decidendi and obiter dicta. * apply well-established rules to identify the ratio decidendi in a decision. This module is intended as a useful exercise in revision. If you are certain that you understand how to discover the ratio in an opinion‚ you should skim lightly over this material. What is the ratio decidendi? As you probably recall from your studies
Premium Ratio decidendi Common law Law
FINANCIAL RATIOS Financial ratios are indicators of a company’s performance as discernable from the company’s Balance Sheet and income Statement. We will discuss some of the simple ratios of a company and talk about their significance. Liquidity Ratios: Show the company’s ability to pay of its current liabilities from its current assets. 1. Current Ratio Current assets should be significantly higher than current liabilities so that the current ratio is higher than 2:1. 2. Quick Ratio (Acid
Premium Financial ratios Generally Accepted Accounting Principles Financial ratio
Microsoft Oracle Interpretation and Comparison between the two companies’ ratios (Reading the Appendix of Chapter 13 will help you prepare the commentary) According to this Oracle gives more per share to their stock holders then Microsoft does. Earnings per share As given in the income statement $2.73 Basic Common $1.69 Both companies have the ability to pay back their short term debts. Current ratio Current assets Current liabilities $74‚918 $28‚774 = 2.60 $73
Premium Financial ratios Generally Accepted Accounting Principles Balance sheet
Current Ratio: The current ratio gauges how capable a business is in paying current liabilities by using current assets only. Current ratio is also called the working capital ratio. A general rule of thumb for the current ratio is 2 to 1. However‚ an industry average may be a better standard than this rule of thumb. So‚ according to the information that we got‚ in 2007 Beximco Pharmaceutical’s current ratio was 1.80 which declined to 1.10 in 2008 and ultimately in 2009 it boosted up to 2.97‚ that
Premium Financial ratios Financial ratio
Kumar published a book in 1991 “Analysis of financial statement of Indian Industries” The study covered the 17 private sector‚ 5 state owned public sector and 1 central public sector companies. He studied analysis of activities‚ assessment of profitability‚ return on capital investment‚ analysis of financial structure‚ analysis of fixed assets and working capital. In his research he revealed various problems of industries and suggested remedies for the problems. He also suggested for the improvement
Premium Financial ratios Financial ratio Financial statements
TABLE OF CONTENTS INTRODUCTION 3 MANAGERIAL FINANCE: 3 FINANCIAL STATEMENTS ANALYSIS: 3 RATIO ANALYSIS: 3 FAUJI CEMENT BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 4 RATIO ANALYSIS: 9 INTRODUCTION MANAGERIAL FINANCE: • Managerial finance is concerned with the duties of the financial manager in the business firm. • The financial manager actively manages the financial affairs of any type of business‚ whether private or public‚ large or small‚ profit-seeking or not-for-profit
Premium Balance sheet Finance Accounts receivable
are better known as ratio analysis. Ratios are among the more widely used tools of financial analysis because they provide clues to and symptoms of underlying conditions.2 Ratios help measure a company’s liquidity‚ activity‚ profitability‚ leverage and coverage.1 These five measured sections show how ratio analysis is used in decision-making‚ how a firm can measure its financial situation and financial performance‚ and the strengths and weaknesses of the company. The term ratio analysis can be broken
Premium Financial ratios Generally Accepted Accounting Principles Balance sheet
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
Premium Financial ratios Generally Accepted Accounting Principles Financial ratio