StudentShare solutions
Triangle menu

Analyze and Compare Ratios of West Ham - Essay Example

Not dowloaded yet

Extract of sample
Analyze and Compare Ratios of West Ham

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. ...
The company improved a lot in terms of shareholder’s equity in 2010 than that of 2009 as it reported the shareholder’s amount of ?13,063,000 from tremendous growth from -?290,000 in 2009. But in 2011 again it has come down to huge deficit of its shareholders’ fund. So, due to the deficit of the shareholders’’ equity in two alternative years except 2010 with respect to huge liability of the company, the shares of the company have become worthless. The main reason behind this the company is highly depended on its creditors which adversely affects the interest of investors or the shareholders towards this company. Interest coverage ratio is an indicator that determines the how easily the company can pay its interest on the basis of its gross earnings before paying interest and tax. Higher the ratio means the company’s gross earning is very high and it can easily pay the interest of its outstanding debt. This company has been reporting negative gross income i.e. loss before paying tax and interest. So has been able to pay interest expense of its outstanding debt and these have remained due or payable for the company (JMU, 2010). Liquidity ratios Current ratio represents the working capital position of the company as it is one of the important indicators of liquidity of a company. It measures the performance of the company regarding its short term ability to pay the short term liabilities of the company. The3 current ratio of the company is has been lower than 1 in all the tree consecutive years that means it has not been able to pay its liabilities as has remained lower than liabilities. Quick ratio or acid test ratio indicates that the company has enough short term ...Show more


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…
Author : dooleyverona
Analyze and Compare Ratios of West Ham essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Analyze and Compare Ratios of West Ham"
with a personal 20% discount.
Grab the best paper

Related Essays

In order to compare the ratio analysis results of Target a control company was selected for comparison purposes. The company that will be used to compare the ratio analysis is Costco. Costco is the US 6th largest retailer and the 7th largest retailer in the world.
3 pages (750 words) Essay
Compare and Contrast between East and West
This could be perfectly depicted in the Saudi culture where women are covered from head to top. In western culture such as the American culture, women are free to wear whatever they want. In fact, the majority of the society in America portrays women as a sex icon.
3 pages (750 words) Essay
Financial Ratios
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.
7 pages (1750 words) Essay
Acid Ratios
There are many ratios that are used to determine a ratio analysis. These are short-term solvency ratios, debt management ratios, asset management ratios, profitability ratios, and market value ratios. The two ratios that make
4 pages (1000 words) Essay
Analyze and compare
He argues that the religious values of love and care get manifested through shopping in the modern secular world. Miller rejects the assumption that
6 pages (1500 words) Essay
Analyze and Compare Ratios
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
4 pages (1000 words) Essay
Compare contrast romeo and juliet with west side story
This analysis will be a comparison of these two plays. The plays, Romeo and Juliet by William Shakespeare and West Side Story, have many
8 pages (2000 words) Essay
Such cases are however fundamental to an entity’s sustainability and are therefore important to stakeholders such as investors, debtors, and suppliers whose interest lies
1 pages (250 words) Essay
Gear Ratios
Gear ratio refers to the ratio of the number of teeth in the driven gear to the number of teeth in the driving gear. The gear ratio is also defined by the length of the distance extending from
5 pages (1250 words) Essay
Financial Ratios
The analysis will then proceed to determining the better company for investment based on the analysis developed. Such an analysis is useful
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation