Examples List on Financial ratios

...Financial ratios of Coca-Cola and PepsiCo Introduction This work is an analysis of the performance of two soft drinks companies, Coca-Cola, and Pepsi. The study will review the financial ratios of the two corporations and determine which of them is better performing according to the market statistics. The outline of the paper will review the backgrounds of each firm, analyze the current ratios, the profitability ratios, and the cash flow indicators of each of the firm. The analysis will then proceed to determining the better company for investment based on the analysis developed. Such an...

...financial ratios. Big firms and businesses make use of financial ratio analysis to know more about a company's potential and current financial health. Specifically, financial ratios can be used in two different but equally useful ways: You can use them to examine the current performance of your company in comparison to past periods of time, from the prior quarter to years ago. Frequently this can help you identify problems that need fixing. Even better, it can direct your attention to potential problems that can be avoided. In addition, you can use these ratios to compare the performance of your company against... Answer to Question 2 One of the time-tested methods in analyzing a business is the use of...

...FINANCIAL RATIOS FINANCIAL RATIOS Ratio analysis is a procedure where an item of financial data is compared with another item of financial data so as to interpret the relationship between the two so that an understanding can be developed about the information and hence conclusions could be drawn. Liquidity Ratios evaluate a company’s ability to pay off their debts when they fall due. Basically it gives a basic picture of a running position of a company. Current Ratio This ratio illustrates a company’s ability to pay off its short term obligation/ current liabilities (amount due within 12 months time) with the current assets that it holds (Bpp Learning Media, 2009). GEARING RATIO... Type the company...

...Financial Ratios Financial ratios outline the performance of a firm as compared to its previous years’ performance as well as making a comparison between the firm and the industry. (Shim & Siegel, 2000) These two types of analysis are performed either through performing the trend analysis wherein year on year performance of the firm is compared with each other to know whether firm has performed better or not. Industry comparison is another method wherein the firm’s ratios are compared with the average ratios of the industry to explore what is the standing of the firm in terms of its...

...Financial Ratios (College) Financial Ratios Introduction Financial ratios, often called accounting ratios are used in the financial analysis by comparing two financial items extracted from the financial statements. Financial ratio is defined as “The relationship between two accounting figures expressed mathematically”. The financial ratio helps to find out the performance of the firm over the years and its state of affairs. It used to analyze the...

...Ratio analysis is a useful tool for analyzing a company, to predict about its future, but the result might get wrong if the factors of the variables are not taken in consideration. LEV and Sunder (1979) raised some basic questions like the structural relationship of the analyzed firms, the size of the firm; these factors are taken in consideration or not. The paper is an attempt to analyze the accuracy of the statement of Lev and Sunder using some evidences taken from real world, especially by doing the cross sectional analysis of financial ratios. Use of Financial Ratios Financial ratios are used to measure a company’s financial... ?Finance and Accounting Contents Contents 2 References 6 Introduction...

...Financial Ratio Analysis Number: Lecturer: Financial Ratio Analysis Doha Bank Q.S.C. a) Liquidity Ratios i) Current asset ratio Current asset ratio = current assets/current liabilities = 65,428,874,000/52,818,101,000 = 1.24 or 124% ii) Acid test (quick) ratio Acid test = (cash + Due from other banks + investment securities)/ current liabilities = (3,435,761,000 + 9,180,420,000 + 11,703,577,000)/52,818,101,000 = 24,319,758,000/52,818,101,000 = 0.46 or 46% iii) Cash ratio Cash ratio = Cash Equivalents + Marketable Securities Current Liabilities... ...

...Financial Ratios Discussion First, let us analyze the company's ratios by group. Leverage ratios: both companies have slightly increased their financing through debt in 2002 while the industry trend was the opposite. Both total debt ratio and long-term debt ratio for Company B are under industry average so Company B has more leeway in terms of attracting additional debt financing than A does. Short term debt makes up approximately 60% (A) and 80% (B) of total. Taking into account high ratio of fixed assets turnover, we can assume the industry is not very fixed capital-intensive. Nevertheless, it requires short-term financing, for example for the needs... in working capital when the...

...Financial ments Contents Methodological Issues with Financial ments Contents 2 Introduction 3 Use of Financial Ratios 3 Critical Analysis 4 Conclusion 6 Reference: 7 Introduction Ratio analysis is an important tool to analyze the performance of a company, to predict about the future and doing the comparable analysis of two firms, in the same industry or different industry. In the year 1979 in their research paper Lev and Sunder raised the issue that the ratio analysis done by the researcher is often motivated by the tradition and convenience, they generally not consider the theoretical background of the variables of the concerned ratio. The paper is an attempt to analyze... ?Methodological Issues with...

...Financial Ratios Analysis and Interpretation The task on hand is to compute for the company’s financial ratios for and Following the computation, an interpretation of the ratios obtained was done to analyze the financial position of the company, and to determine the overall performance with regard to its financial management. The company’s short-term and long-term liquidity, its asset management ratios, and profitability ratios were computed and analyzed. After obtaining and analyzing the company’s financial ratios, these were then compared to industry ratios, where available, in order to provide a benchmark with which to compare the company’s performance. Overall, the picture... ?Deep Water Experts...

...financial highlights & chairman’s statement The current financial year has been pretty good for the company, according to the chairman. The clothing market share of the company increased to 11% from 10.7%, where food has seen a 6th consecutive year of growth. Unadjusted profits have been up to £713.4 million, which is a 17.5% increase from 2009. KEY PERFORMANCE INDICATORS   2010 2009 Liquidity Ratios... and Section # of THE COMPANY – MARKS & SPENCER The company Marks and Spencer’s is one ofthe biggest retailers in the United Kingdom, providing quality and stylish clothing and home products to consumers. They are currently employing about 75,000 people in the United Kingdom and abroad. They recently...

...Financial Ratios a) Synopsis of content There are a number of points covered in the article. One of the main considerations is the high emphasis financial analysts place on the corporate annual report. Within this context of understanding, the income statement is the most important, while the balance sheet is the second most important. In examining these elements, the article notes the high importance analysts place on financial rations as a determinant of these financial statements. A survey of Chartered Financial Analysts (CFAs) was conducted regarding their views of these...

...Financial Ratios Analysis and Comparison Paper Introduction United Health Services is a healthcare organization that runs a chain of hospitals at thenational level and provides acute healthcare services. The financial ratios calculated from the financial statements of the organization helps to determine the liquidity, profitability and operating performance of the healthcare organization. A comparative analysis with a local healthcare organization namely, Health Management Associates have been conducted to determine the scope of improvement in the performance of healthcare services. Role of...

...Financial Health of the Company 3 2 Investment (Investors Objective of the Company 4 2. Company Financial Background 4 3. Financial Ratio Analysis 6 3.1 Profitability Ratio 6 3.2 Liquidity Ratio 8 3.3 Gearing Ratio 9 3.4 Investment Ratio 11 4. SWOT Analysis from Financial Perspective 13 5. Conclusion and Recommendation 14 6. References 16 16 7. Appendices 21 7.1 Appendix 1: Profit and Loss Account of Jardine Cycle & Carriage Ltd. (2010, 2009, 2008, 2007) 21 7.2 Appendix 2: Balance Sheet of Jardine Cycle & Carriage Ltd. (2010, 2009, 2008, 2007) 24 7.3 Summary/Workings for Financial Ratios 27 1. Introduction 1.1 Financial Health of the Company Jardine... ?Stock Analysis Table of Contents Introduction 3 1...

...FINANCIAL RATIOS WHITBREAD FINANCIAL RATIOS (Your (Your (Year) Introduction Company analysis is a vital step in the process of determining the performance of the company in order to make an investment decision on whether to invest in the company or not. There are various methods that can be used to carry out a company analysis for investment decision making purposes. Ratio analysis is one of the methods used to carry out a company financial analysis to determine the performance of the company in question in relation to other companies in the industry in which such a company operates and also in relation to its own operations over time. The past performance of the company as shown... by the...

...Financial ratios are an important indicator of the how the firm is performing financially. Financial ratios allow the management, shareholders and investors to compare the financial performance of the company with its performances in previous years or with the performances of its competitors or overall industry (McLaney, 2009). This report analyses the financial performances of Tesco in the last 2 years i.e. 2012 and 2011. Different financial ratios are calculated using the financial statements of the company for the year 2012 and 2011 and then analysis of these ratios have been presented. FINANCIAL RATIOS Profitability ratios Profitability ratios are used to analyse how the firm has... INTRODUCTION...

...FINANCIAL RATIOS ANALYSIS WELLS FARGO & COMPANY ANALYSIS Overview In 1852, Henry Wells and Henry Fargo founded the institution, and it has since then been expanding its operations. Wells Fargo and Company is one of the largest banks in the United States with 6,600 bank branches in 50 nations and a further 4000 mortgages and consumer finance offices. It undertakes the following activities; retail, consumer and corporate banking, insurance, leasing of equipment, investment management etc. its diversified business activities offers the bank a competitive advantage in the market (Chandler, 2006, 7). The bank has positioned itself with a niche in specialized lending activities... ? WELLS FARGO & COMPANY –...

...Ratios: Target Corporation: 1. Current ratio= Current assets / current liabilities In 2013: 16.39/ 14.03= 1.168 2014: 11.57 / 12.78 = 0.905 2015: 14.09 / 11.74 = 1.2 2. Acid Test = (current assets - Inventory) / current... liabilities In 2015: (16.39 – 7.9) / 14.03 = 0.605 2014: (11.57 – 8.77) / 12.78 = 0.219 2013: (14.09 – 8.79) / 11.74 = 0.453 3. Receivables turnover= Sales/ Average receivables In 2015: 72.62/ 1.12 = 64.84 2014: 72.6 / 1.35 = 53.78 2013: 73.3/ 6.86 = 10.69 4. Inventory turnover = Sales / inventory In 2015: 72.62 / 8.79 = 8.26 2014: 72.6/ 8.77 = 8.28 2013: 73.3/ 7.9 = 9.28 Wal-Mart Stores Inc.: 1. Current ratios: In 2015: 63.28 / 65.27 = 0.97 2014: 61.19 /...

...financial ratios. Big firms and businesses make use of financial ratio analysis to know more about a companys potential and current financial health. Specifically, financial ratios can be used in two different but equally useful ways: You can use them to examine the current performance of your company in comparison to past periods of time, from the prior quarter to years ago. Frequently this can help you identify problems that need fixing. Even better, it can direct your attention to potential problems that can be avoided. In addition, you can use these ratios to compare the performance of your company against... Answer to Question 2 One of the time-tested methods in analyzing a business is the use of...

...financial ratios and their implications along with their usage have been explained. Different types of financial ratios have been discussed in this chapter and all these financial ratios will be calculated for the three firms under study; Tesco, ASDA and Sommerfield in the research study. Financial ratios Financial ratios have been used by firms around the world to analyse how one firm performs in comparison to the other firm as well as to analyse the performance of the firm over... the period of years. Therefore management calculates and uses financial ratios to identify the performance gap of the firm against its own past performances as well as against the...

...financial ratios to a business Ratio Analysis helps the business managerto see trends in a business, and compare its condition and performance with that of like businesses in a similar industry. Therefore, the manager may evaluate the relative weaknesses and strengths of his or her business. This comparison of business ratios to those of other similar businesses will indicate the weaknesses or strengths within a business (Albrecht, 2011). The most effective way for owners of small businesses to utilize financial ratios is by conducting a ratio analysis on regular intervals. Ratios important to a manager of a large corporation include return... ? Understanding Concepts Understanding Concepts Important...

...financial statements. The most widely known and reliable approach of evaluating a firm’s performance is by calculating and comparing its financial ratios. The basic reason for doing so is because this information is understandable for every person who has some level of knowledge of financial concepts. By comparing the ratios... with the competitor of the firm or with its past performance, a clear idea can be obtained. For this purpose, the company which has been chosen is Roll Royce. It is a diversified company having its operations in the field of aerospace, nuclear market, civil defense and marine and energy. It was founded in 1971 and has its headquarters in London, United Kingdom. This...

...Financial Ratios in Multivariate Modeling Introduction In this report, we will advise NENE limited on various projects they are hoping to take up. Different appraisal methods will be used including NPV, ARR, Cash flow and Payback period methods. Ratio analysis will also be used when evaluating two companies that NENE would like to acquire. For its cost allocations, traditional and Activity based costing methods will be used to advise NENE Limited management. Question 1 Cash flows Cash flows of Alpha: Time Cash flowing in or out (£000) Project Depreciation (£000) Project Disposal (£000) Cash Flows with Depreciation (£000) Cash Flows Cumulative (£000) Investment time (100...  The Popularity of Fin...

...Financial ratios are extensively used by financial analysts, auditors, investors, shareholders, researchers, practitioners and management of the organizations to evaluate and identify different factors, trends and performance of the company. Financial ratios are also used to evaluate the current performance of the company against its past performances as well as performance of competitors and overall industry. According to Lev and Sunder (1979) the extensive use of financial ratios by both practitioners and researchers is often motivated by tradition and convenience rather than resulting from theoretical considerations or from a careful statistical analysis. However, this statement... ?INTRODUCTION...

...financial ratios Usefulness and limitations of financial ratios Financial ratios help in expressing the relationship between the items on financial statements for a given entity. Despite the fact that most of the financial statements provide historical data, management and other users of financial information can use the ratios to identify strengths and weaknesses within the entity as well as help predict future financial performance. Investors use these ratios to make comparisons between companies in the same industry. Most of these ratios are not generally meaningful when evaluated alone but they tend to bring meaning when they are compared to historical information... Usefulness and limitations of...