GROUP 1 REPORT FINANCIAL RATIOS Financial ratios are useful indicators of a firm’s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm’s financials to those of other firms. In some cases‚ ratio analysis can predict future bankruptcy. SOURCES OF DATA FOR FINANCIAL RATIOS Balance Sheet Income Statement Statement of Cash Flows Statement of Retained
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FINANCIAL STATEMENTS Accrual-based approach – revenues are recorded at the point of sale and costs when they are incurred‚ not necessarily when a firm receives or pays out cash Cash flow approach – used by financial professionals to focus attention on current and prospective inflows and outflows of cash 1. Balance sheet a. Assets Cash and Cash Equivalents Marketable securities Accounts receivable Inventories Net property‚ plant and equipment Intangible assets b. Liabilities Accounts
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Tiffany & Co. Case Study After Tiffany & Co. made the new retiling agreement with Mitsukoshi Ltd in July 1993‚ Tiffany & Co Japan. Inc started to be responsible to manage the operations of 29 boutiques in Japan. Tiffany will now face both opportunities and risks. Prior to the new agreement‚ the wholesale transactions were dominated entirely in dollars‚ so yen/dollar exchange rate fluctuations were not the reason of Tiffany’s cash flow volatility‚ and Mitsukoshi bore the exchange risk between the
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(a) In what sense is taxing food is a ‘good’ way to raise revenue? Food being inelastic meaning people will always have the need to buy food consumables. Governments would benefit greatly by taxing food as it would be a fast way to raise money. Inelastic: Suppliers are unable to react quickly to a change in price. Firms also find it harder to implement change in production within certain time parameters. (b) In what sense is it not a ‘good’ way to raise revenue? Usually any
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accessible and comprehensible. This very big data overload could seem astounding. Luckily‚ many well-tested ratios out there make the task a bit less daunting. Comparative ratio analysis helps you identify and quantify of the desert hotel company ’s strengths and weaknesses‚ evaluate its financial position‚ and understand the risks you may be taking. As with any other form of analysis‚ comparative ratio techniques are not definitive. Numerous off the balance sheet and income statement factors can play
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Profitability Ratios Profitability ratios measure two aspects of a corporation’s profits: (1) those elements of operations that contribute to profit and (2) the relationship of profit to total investment and investment by stockholders. The first group of profitability ratios [gross profit (or gross margin) percentage‚ operating margin percentage‚ and net profit margin percentage] expresses income statement elements as percentages of net sales. The second group of profitability ratios (return on assets
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Financial Data and Ratios Assets Health Products Beer Computers Books & Music Paper Tools Retail Newspapers A B C D E F G H I J K L M N O P Cash & Short Term Investments 24.2 16.1 1.4 55.6 42.2 67.9 54.8 16.2 7.6 5.9 9.3 6.5 4.6 7 0.6 1.1 Receivables 12.8 8.1 4.3 11.9 19 13 nmf 2.3 8.8 10.9 18.9 23.7 1.4 17 4.6 9.9 Inventories 7 5.4 4.3 11.7 2 1.3 14.8 38.6 7.9 14.4 17.8 14.9 24.5 16.7 0.8 0.8 Current Assets - Other 7.2 2.5 1.3 2.4 9.5 5.5 8.6 2.6 3 1.4 7 6.9 1.5 2.5
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Nadarajan AC089637 3 Thayasiri Sumaran AC089676 4 Khesanivarni Balakrishnan AC089702 Table of Content Pages 1.0 Introduction 3 2.0 Company Background 4 3.0 Profitability Ratio 5-6 4.0 Liquidity Ratio 7-8 5.0 Efficiency Ratio 9-10 6.0 Gearing Ratio 11-12 7.0 Shareholder Ratio 13-14 8.0 Cash Flow 15 9.0 Conclusion 16 10.0 Reference 17 11.0 Appendix 18 1.0 INTRODUCTION British American Tobacco (informally BAT) is a British multinational tobacco
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Ch. 3 Study Questions 1. Discuss the rationale for the economic regulations of transportation The reason for the economic regulations of transportation is to create the monopolistic industry into a more competitive one where prices will be more reasonable for the consumer as transportation is very important to the movement of everyday goods. The government in turn will determine if a firm can enter an industry; determine which market(s) a firm can serve in that industry; and determine the prices
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hardness up to 6H‚ but as soon as we apply Antireflection coating on this surface‚ the hardness again drops to 4H. Due to this‚ the lenses get scratched over a shorter period of time and causes scattering of light and blurring of vision. The customer is left with no other option but to replace the lenses within a span of 6 to 8 months. The desire is to have a lens with harder scratch resistant coating which would withstand the normal wear & tear and allow the customers to wear it for a much longer
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