Ratio Analysis Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity‚ profitability‚ and solvency. Liquidity Ratios Liquidity ratios measure the ability of a company to repay its short‐term debts and meet unexpected cash needs. Current ratio The current
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Accounting and Finance: Managerial Use February 19‚ 2011 Class Project: Ratio Analysis The gross profit percentage is one of several key measurements a company uses in evaluating its financial performance. It helps a company to see what percentage of its earning after costs (for products and/or services) is profit. A higher gross profit percentage is generally preferred as it provides the company with financial resources to pay for research‚ product development‚ and other costs
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How do both humans and rose bushes exhibit common characteristics of life? There are several characteristics that allow us to determine when an “object” is living or non-living. For example‚ we can look at a rock and a frog and‚ based on these characteristics‚ determine that a frog is living and would be something a biologist might study. Even if armed with this information‚ it is not always easy to see the similarities between living things. For example‚ are humans and rose bushes really that
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to participate in collective bargaining‚ from representatives of their own choosing (Connolly‚ 1974). Both parties in this case did claim that it was too cold and drafty at the workstations which were near the opening of the overhead door. The supervisor did refuse to close this overhead door because the other employees wanted to leave this open. Both parties in this case did act weak manner by walking off their job for the rest of the day. This was both employees way of protesting that their workstation
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significant than this one. This ratio is known as the Golden Number‚ or the Golden Ratio. This mystery number has been used throughout different aspects of life‚ such as art‚ architecture‚ and of course‚ mathematics. One may wonder where the Golden Ratio came from? Who thought to discover it? When was it discovered? And how has it been used throughout time? The Golden ratio has been used throughout different aspects of life after being discovered during the ancient times. About two to three thousand
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| 2 | 4.1 Vertical analysis 4.2 Horizontal analysis | 23 | 4. Key ratios analysis | 4 | 5. Share issues | 5 | 6. Conclusion | 5 | 7. Bibliography | 6 | Table of Appendixes 1. Income statement – Horizontal and vertical analysis | 2. Statement of financial position – Horizontal and vertical analysis | 3. Ratio analysis - Liquidity and Profitability | 4. Ratio analysis – Efficiency and Investment | 5. FTSE 100 Index – weekly share prices
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What should Betty do? Based on the present situation‚ Betty needs to evaluate the ethical and legal aspect of the situation. Did Betty lied for the Senior Management position? The question is about what is right and what is ethical and‚ what is the right thing for Betty to do? The current proposed action for Betty is‚ whether the action is legal? According to Bagley and Savage (2009)‚ it is vital to address the legal issue first in order to establish the perception that legal compliance is the
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Everyone has had a point in their life where they were not satisfied with their pay- whether it’s at a fast food restaurant or a higher business job. Many teenagers and young adults start working at a low-wage job to gain experience and earn a little money. However‚ because of the minimum wage‚ many people get an education or learn required skills to shoot for a higher paying job making it a good reason why the current minimum wage isn’t so bad. It gives teenagers a chance to gain work ethics and
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Case Preparation Questions Cola Wars Continue: Coke and Pepsi 1. Why is the soft drink industry so profitable? 2. Compare the economics of the concentrate business to the bottling business: Why is the profitability so different? 3. How has the competition between Coke and Pepsi affected the industry’s profits? 4. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? Zara: Fast Fashion 1. How specifically
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Liquidity Ratios 2012 2011 Current Ratio 20‚025/24‚025=0.83 17‚003/27‚075=0.63 Quick Ratio (7‚138+10‚744)/24‚025=0.74 (6‚252+9‚259)/27‚075=0.57 Activity Ratios Receivable Turnover 46‚417/((10‚744+9‚259)/2)=4.6 45‚884/((9‚259+8‚784)/2)=5.1 Inventory Turnover 31‚546/((486+537)/2)=61.7 30‚814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7‚003/((139‚576+151‚220)/2)=4.8% 7‚870/((151‚220+156‚985)/2)=5.1% Rate of Return on (7‚003-56)/((78
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