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Analyze and Compare Ratios of West Ham - Essay Example
Pages 4 (1004 words)
Ratio Analysis Table of Content Ratio analysis of company’s (West Ham) won ratios 3 Activity ratios 3 Debt ratios 3 Liquidity ratios 4 Profitability ratios 5 Financial statement ratios 5 Comparative ratio analysis of West Hum with its competitors 5 Activity ratios 5 Debt ratios 6 Liquidity ratios 6 Profitability and financial statement ratios 6 Reference 7 Ratio analysis of company’s (West Ham) won ratios Activity ratios Asser turnover ratio represents the net sales with respect to the total assets of the company…
It has increased far more in 2011 from 2010 than that of in 2010 from 2009. But the reported percentage is not at all a good indicator of asset performance (NYU, 2012). Debt ratios Debt ratios determine the company’s over debt load an also mix of equity and debt. So these ratios evaluate the financial risk the company and its shareholders have been facing. Debt ratio is a compared unit of company’s total debt with respect to its total assets. Specifically it shows the amount of leverage the company is using. Higher debt ratio means the company is highly dependent on its leverage and the equity position of the company is very weak. So higher the ratio means more risk the company and its shareholder has been taking. Although the total liabilities of the company has been increasing over the year but the total assets also has been decreasing in similar proportion. As a result the ratio has increased more in 2011 than it decreased in 2010 from 2009. Debt equity ratio represents the overall status of debt of the company. It compares the total liability of the company with respect to the shareholders fund. ...
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