Financial Ratios All Numbers are based on The Annual Financial Report for the year 2014. Numbers in Thousands Liquidity Rations: • Current Ratio= Current Assets/Current Liabilities Current Assets= 260,478/45,558 = 5.72:1 This ratio was selected to help evaluate Port Everglades’ liquidity in the short-term. For 2014 for every dollar of liabilities that Port Everglades, there is $5.72 of current assets. This means that Port Everglades has the ability to cover more than 5 times the number of liabilities and can easily cover any of its short term debts. It also means that Port Everglades will still have a positive balance of its assets following paying off all of its existing liabilities. • Acid-test Ratio= (Current Asset Investments –(Accounts …show more content…
Using Horizontal analysis allows for one to see the changes that take place in a company over a period of time. From the year 2012 to 2013, there is an increase in net income of 2.8%, but this number jumps to 15.8% between 2013 and 2014. Total non-operating revenue between 2012 and 2013 rises 103.8 %, but from 2013 to 2014 there is 96.1% decrease. This leads me to believe that there was some non-operating event that occurred in 2013 to increase the non-operating revenue that did not occur in 2012 or 2014. Net sales from 2013 to 2014 increased 7.6% which is a positive note after there was a negative percentage from 2012 to 2013 of -.01%. Also something that is worth noting is the decrease in non-operating expenses between 2012 and 2013 of -27.3%, but this number would rise in 2014 by 3%. It is important to note that Port Everglades had a decrease of operating expenses, but they had a large increase in operating revenue. This means that Port Everglades had decreased their expenses while receiving a large increase in their revenue. Both operating revenue and net income are increasing over the three year span. This swing of several million dollars is very important for a company of Port Everglades’ size as these millions of dollars can have a serious impact of the net income of the …show more content…
Vertical analysis is used to see how much each part of the income statement makes up of the total net sales. For the year of 2012 gross profits is at 80.8%, but it rises to 84.4% by 2014, this shows a positive trend upwards in profitability. Total operating revenue is in an up and down state from 2012 to 2014, it is at 92.8% in 2012, then 95.4% in 2015, and then it drops down to 92.5% in 2014. Capital contributions follow a similar pattern going from 6.4% in 2012, then to 2.8% in 2013, then finally ending on 6.8% in 2014. As Port Everglades continues to modernize itself over the years there will be a certain level of change as the company trends in an upward direction of profitability. This pattern lends itself to show that Port Everglades is moving in the right