We have put together 5 financial parameters(Matz, 1980) in Chart 4.1.1. The 5 parameters are Cost of Good Sold as a percentage of Sales ("CGS%S"); Selling, General, and Administrative Expenses as a percentage of Sales ("SGA%S"); Operating Current Asset as a percentage of Sales ("OCA%S"); Property, Plant, and Equipment as a percentage of Sales ("PP&E%S"); and Other Intangible Assets as a percentage of Sales ("OIA%S").
The percentage of Cost of Goods Sold in relation to the total Sales is ranges from the start in the year 2000 at forty eight percent and fluctuates every year until it reaches its highest percentage of fifty seven percent in the year 2005. The cost of goods sold percentage in relation to Sales then is fixed at fifty six percent starting the following year, 2006, until the last year 2026.
The Sales, General and Administrative Expenses percentage in relation to sales starts at the very high twenty seven percent and goes down to twenty six percent in 2001. The percentage then goes further down to its lowest ratio of twenty two percent. The percentage of this expense over sales is finally forecasted to stay at the ratio of twenty three percent starting in the year 2006 until the last year 2026.
The Total Current assets percentage over sales starts at a low twenty three percent. The ratio, then, starts picking up until it reaches the next position at twenty nine percent. The ratio then fluctuates mostly in the ratio of twenty seven percent. The ratio reaches further up to thirty seven percent. The new ratio then reaches again a higher ratio of Fifty four percent, sixty percent, and even until the highest ratio of seventy percent until the last year of the forecast 2026.
The ratio of net plan, property and equipment (PPE) in relation to sales(Meigs, 1995) is fluctuates. In the year 2000, the ratio is twenty three percent. The ratio goes up to thirty five percent in the year 2002 and even goes down to twenty six percent. This ratio is fixed at twenty six percent starting the year 2006 until the last forecasted year 2026.
The ratio of Other Long term operating assets to sales fluctuates from the year 2000 at thirty eight percent until reaches its highest ratio of one hundred twenty four percent in the year 2003. The ratio is then forecasted to be fixed at one hundred two percent within the time period of 2006 to 2026.
Based on the Table 1 found after the References Section, the graph is shown below as figure Chart 4.1.1 as follows.
For more information concerning the specific values of each ratio, you may refer to Table 4.1.1 of the appendix A.
Chart 4.1.1 Trend of 5 financial ratios from 2000 to 2026
To conclude this section, we would like to discuss the Dividend Payout Ratio ("DPOR"). From the chart, we may observe that the company had high DPORs in late 2000 till 2005. Indeed, the Company is among the top food and beverage companies in the United States and around the world both in giving out Dividend to its shareholders(Meigs, 1992) and filling the demands of its discriminating clients. Dividend Pay
This chapter will be divided into 3 parts. The first part will focus on the final forecast parameters. Then it will be followed by a presentation of the company's pro forma financial statements(McQuaig, 1997). This chapter will followed by a presentation on the financial ratios of the company.
Liquidity has two dimensions. Ease of conversion versus loss of value. Any asset can be converted into cash if its price is cut sufficiently. A highly liquid asset is therefore one that can be sold without significant loss of value. An illiquid asset is one that cannot be quickly converted into cash without a substantial price reduction.
It may also be possible that company may be having excess profits in hand and so it will be able to utilize those funds to meet the demands of growth. If the firm is not having sufficient profits then to meet the growth demand it may have to pick up some short term or long term loans from the market.
It will go a long way in streamlining and prioritizing its budgetary and planning objectives. Financial forecasting is also of vital importance for this company, considering the fact that it is a listed company and is being closely scrutinized by bankers and investors as never before.
According to Bojanic & Reid (2009) a budget in strategizing any sales has to be the guide that allows one to carry out the required activities and not a constraint that limits the extent to which these activities are carried out. A budget has to
According to the discussion financial statement analysis is differentiated from other approaches fundamentally because its main function is to assess the financial condition of an organization based on its financial statement. Several types of analyses can explain an organization’s financial condition.
They are the accounts or activities found on the income statement, by adding all the money gotten from the customers minus the monthly expenses.
The investing activities are those amounts generated by a company’s
Accounts Receivable Turnover is defined as the number of times accounts receivable turn-over in a year. A quick turn-over is needed in business because the receivables do not stay too long and is converted to cash.
2. Inventory turnover ratio. I think the ITR of 4.41%
The author states that the amounts for the assets are reported in accordance to prevailing average rates that were obtained from current market trends, such as land, building, etc. The tax expenses that reported are in the financial statement are based on the average taxations policy of the country that is subjected to change in times to come.
The aim of this essay is to identify and select any two companies from the same industry and perform financial analysis of their past four years with a view to evaluating such published accounts. For clarity to be attained, this essay will use
10 pages (2500 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
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Didn't find an essay?
Contact us via Live Chat, call us at +16312120006or send an email to firstname.lastname@example.org