The Role of Financial Ratios Table of content Introduction 3 Chapter 1. Notion and types of ratios. 4 1.1 Liquidity ratios. 5 1.2 Financial leverage ratios 7 1.3 Funds management ratios 9 1.4 Profitability ratios 12 Chapter 2. Use of financial ratios. 15 2.1Use and Limitations of Financial Ratios 15 2.2 Used financial data 15 2.3 Financial ratios calculated for The Apple Company 16 2.4 The Dupont Model 18 Appendix 1 21 Conclusion 23 Bibliography 24 Introduction I have chosen
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your selected organization’s balance sheet and income statement to calculate the following: Liquidity ratios Current ratio Acid-test‚ or quick‚ ratio Receivables turnover Inventory turnover Profitability ratios Asset turnover Profit margin Return on assets Return on common stockholders’ equity Solvency ratios Debt to total assets Times interest earned Show your calculations for each ratio. Create a horizontal and vertical analysis for the balance sheet and the income statement. Write
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BSA/500 Calculate Financial Ratios Riordan Manufacturing’s Calculated Financial Ratio Current Ratio The current ratio is the measure of the degree to which current assets cover current liabilities. A ratio of more than one suggests that it can pay most of its debts at that point in time. The ability to effectively turn products into cash is a good sign of a company ’s financial state. Current assets $14‚589‚092.09 * $14‚643‚456.43 * Current liabilities $6‚974‚094 $6‚029‚696 Current
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Ratio Analysis Paper Ratios describe the various relationships among accounts in the balance sheet and income statement. Financial ratios are important and helpful gauges of how an organization is functioning. An organization’s financial health‚ potential revenue‚ and even possible bankruptcy can be garnered from financial ratios. Information derived from financial statements is used to calculate most ratios and make projections. “Ratios help investors and lenders determine the risk associated
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Old Exam Packet – Acct 284 Fall 2009 Exam 1 – Fall 2008 Investing activities: a. involve day to day events like selling goods and services‚ which occur when running a business. b. involve the buying or selling of land‚ buildings‚ equipment‚ and other longer-term investments. c. only involve financial exchanges. d. All of these. Accumulated depreciation: a. is an expense account. b. is a liability account. c. is a regular asset account. d. is an asset contra-account.
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Effects of Raising Interest Rates If a central bank increases the base rate‚ this tends to increase all major interest rates in the economy. This means interest rates for both savers and borrowers will increase. Higher interest rates will have various economic effects: 1. Increases the cost of borrowing. Interest payments on credit cards and loans will be more expensive. Therefore this discourages people from borrowing and saving. People who already have loans will have less disposable income
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RATIO ANALYSIS Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of one number to another. It may be defined as the indicated quotient of two mathematical expressions. According to Accountant’s Handbook by Wixon‚ Kell and Bedford‚ “a ratio is an expression of the quantitative relationship between two numbers”. Ratio Analysis:Ratio analysis is the process of determining and interpreting numerical relationship based on financial statements. It is the technique of
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Profitability Ratios Return on Capital Employed (ROCE) or Return on Equity (ROE) Numerator – the net profit or income‚ usually taken before tax. Capital Employed or Shareholders Equity - Designed to indicate the effective use of the shareholders capital in the business with respect ot the net profits that they have generated over the period of concern. Net Profit/Income Percentage or Return on Sales Helps to identify the impact of administrative‚ selling and distribution costs on profit
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Demerits of Interest Groups PAD 170 Prepared for: Sir Fairuz Hidayat 2013 Disadvantages/ Demerits of Interest Groups PAD 170 Prepared for: SFH 2013 Introduction As we all know there are types of groups that are playing important role in the administration in the mechanism of government especially in terms of decision making or legislative body. These groups are known as Interest Groups and Pressure Groups. Basically interest group is
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Discussion Topic Conflict of Interest HCM 331 Mount Olive College Jackie Hardy Introduction Conflict of interest is a situation that has the potential to undermine the independence of a person because of the possibility of a clash between the person ’s self-interest and professional interest or public interest (Business Dictionary‚ 2012). A conflict of interest can arise when someone have dual interests or duties. Healthcare is a very common issue for conflict of interest issues. In this report
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