Financial ratios Essays

2011 Financial Ratios Current Ratio = 0.8 = 59,308/71,724 Quick Ratio = 0.6 = (59,308-26,073)/71,724 Long Term Debt to Equity = 1.0 = 9,322/9,547 Inventory Turnover = 33.7 = 467,029/13,852 Total Assets Turnover = 1.5 = 467,029/321,650 Accounts Receivable Turnover = 13.4 = 467,029/34,861 Average Collection Period = 27.2 = 34,861/(467,029/365)

The Current ratio is primarily used to give an idea of the company's ability to pay back its short-term liabilities by using its short-term assets. If a company’s ratio is higher than 1 then the company is more capable of paying its obligations. However if the companies ratio is under 1 then that suggests that the company would be unable to pay off its obligations in under 12 months. Publix’s ratio shows that they are a company that is in good financial health and can quickly repay debts owed. Companies

If we look at the ratios, the financial health of Modern Technology has worsened slightly in financial year of 2015 as compared to financial year of 2014. We will look at current ratio, acid test ratio, inventory turnover ratio and receivable turnover ratio to examine Modern Technology’s liquidity as a company over the two years. Current ratio: Modern Technology’s current ratio improved slightly from year 2014 to year 2015. A higher current ratio is desirable because it shows that Modern Technology

of the expansion carried out by our Corporation. The researcher has assessed the financial statements over five categories of ratios over five performance aspects of the corporation. Liquidity Liquidity measures short-term ability of the organization to pay its debts and expenses. Liquidity is the key indicator of short term financial strength. The Current Ratio “The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay off its short-term liabilities with its current

business may not be a financial expert. A startup often requires a loan, and investors usually require extensive financial data before they will even consider granting one. To evaluate and assess if the company financial statement we will need all the company data. The data is used to calculate financial ratios over a period of time in our case 2 years, this will grant us the possibility to describe the health of the business and the risk it presents to investors. Financial ratios highlight developments

Term of Reference Background Objective Executive Summary Financial Ratios Formula Financial Ratios Analysis of BA and Ryanair Horizontal Analysis of Income Statement Vertical Common Size Analysis of Balance Sheet Comparison of the two companies Strength and Weaknesses Conclusions/recommendations --- Terms of Reference a) Background A success degree of one company can be measured by comparing its financial performance to its competitor. By assessing two companies, this will enable

Financial Ratios This week I obtained the financial ratios for Dollar Tree based on the financial statements of the company. I was able to complete my financial analysis project with the statements on the company. Below you will find the eight financial ratios that I obtained on Dollar Tree. Cash Ratio 866.4/2105.9=0.41 The cash ratio is the cash equivalent divided by the current liabilities. Without having a good cash ration then the company would not have ample amount of cash to run a business

Introduction: Financial ratios provide valuable insights into a company's financial health and performance. This analysis focuses on the financial ratios of Lloyds Ltd. for the years 2014 and 2015. The ratios cover liquidity, activity, debt, profitability, and market performance. By examining these ratios, we can gain a better understanding of the company's strengths and weaknesses and assess its investment potential. Step 2: These ratios collectively provide a comprehensive overview of Lloyds

Financial Ratios Many different financial ratios can be used to evaluate a company's profitability, short-term liquidity, and long-term solvency (Heisinger & Hoyle, 2012). These ratios can provide management with valuable information about the company's financial performance and position and can be used by management to make informed decisions about the company's operations, financial strategy, and future direction. Profitability ratios measure a company's ability to generate profits and return

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

Hired as the financial analyst for Baruch College Fund, we were tasked to analyze potential investment opportunities and present our research findings to our fund manager. We were assigned to analyze the financial positions of American Eagle Outfitters Inc. and The Buckle Company. A decision is needed to determine which company would yield a higher potential profit when selected as an investment. We will compare both companies based on their financial statements provided in their Form 10-K‘s. After

Burlington cash ratio is .58 the cash + cash equivalents/liabilities explain the answer. According to Burlington ratio, being 0.58 the company face difficulties paying their bills because of receiving less than one dollar. If I was a manager for Burlington company, nothing I would change because of the cash + cash equivalents are 133,286 and is sufficient to meet the needs financially (Burlington Form 10-K,2018). However, I would make any changes to the company to increase the cash. A Current ratio is 2.97

Financial Ratios for Lowe's Companies post financial reports not only because it is the law but, because it is a standard means that potential investors have of analyzing whether the company is a viable investment option. However, with all the information available in a 10k, it can be difficult to compare one company to either another company, or the sector. This is where ratios come into play. Ratios are used to compare one company to another. While they cannot be used to predict future performance

The first part is about liquidity. According to Gemini’s statement of cash flows, and then calculating the ratio for 2008 to 2009, the current ratio increased 0.04 from 2008 to 2009, which is 2.52 in 2008 and 2.56 in 2009. The current ratio equals to current assets / current liabilities. The higher the ratio, the stronger the liquidity of the enterprise assets and the stronger the short-term solvency. Compared to 2008, Gemini Electronics’ liquidity has improved, but still below the industry average

As an accountant for a potential vendor, I would be interest in knowing Verizon Communications Inc.’s current ratio. I want to make sure the company has enough money to pay its bills and purchase raw materials to make the deliver products and/or services to us. The current ratio measures the liquidity a firm’s ability to meet short-term liabilities when it’s due within the next year. Most vendors’ prefers doing business on credit because it allows them to receive payments on a timely manner when

relatively decent ratios when compared to the industry with only a few outliers. As far as their current ratio goes they are ever so slightly above the median with a 1.45 ratio compared to the 1.43 median industry ratios. This a pretty good thing. A high current ratio signifies liquidity, the higher the current ratio the better in most cases. The quick ratio is the same for S&S. They are ever so slightly higher at .88 than the industry median of .84. The higher the quick ratio the better the liquidity

whether a company’s current ratio is good or bad, why? 2. Suggest several reasons why a 2:1 current ratio might not be adequate for a particular company. 3. Why is working capital given special attention in the process of analyzing balance sheets? Also, this paper is going to illustrate the importance of those financial information to the management to make wise decisions. 1. What three factors would influence your evaluation as to whether a company’s current ratio is good or bad, why? The three

Making sense of financial statements can be a difficult task for the average investor, however, with quantitative analysis of the information, many financial ratios can assist in analylising the company to determine its strengths and weaknesses to understand how the business is performing and where improvement is warranted. The ratios don't take into account the size of the business or the specific sector or industry involved, so comparions with any other company can be made. The table above lists

Introduction In this essay I will be reviewing the financial position and performance of two companies for a large institutional investor, who is considering investing in one of two companies. The two companies that I will be reviewing are Halfords plc, they both operate in the retail industry; and The Unite group plc, also provides purpose built student accommodation. Before I go into the financial positions of both companies here is a little background on both Halfords and unite group plc. The

1. How do you think financial ratios differ across different industries? Compare two industries of your choice and select a few ratios and explain whether you think the ratios would be higher or lower for each of those industries and explain why. Financial ratios differ across different industries because different industries have different type of market like consumer and demands. Each industries are varies and sometime unique depending on the type of services or product they offer. Therefore