StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Ratios Tell A story assignment - Essay Example

Cite this document
Summary
Ratios tell a story assignment Introduction Different people use financial statement for different purposes. The creditors or the lenders want to know about the financial capability of the firm to repay the borrowings. Investors are interested in the profitability position and solvency position of the firm as these generate high return for them in the future…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Ratios Tell A story assignment
Read Text Preview

Extract of sample "Ratios Tell A story assignment"

Download file to see previous pages

However, it is very difficult for one to examine the whole financial statements of a company. Ratio analysis makes it easier for everyone to understand the profitability, solvency, and efficiency position of the firm. Ratio Analysis is a tool used for quantitative analysis of the information from the financial statement of a company. In spite of the advantages, ratio analysis has several drawbacks too. It consider only historical data, the future performance of the company cannot be predicted.

It helps to evaluate firm’s financial status on the basis of past and present financial data of a company. In this study, comparisons of ratios have been made on different companies according to their financial indicators. A ratio analysis has been conducted to compare the profitability, solvency and efficiency of Wal-Mart and Safeway. Ratio analysis helps to effective analysis of the financial statement. The financial status of the companies can be easily understood by the help of the ratio analysis.

Safeway vs. Wal-Mart Safeway Inc is a supermarket whereas Wal-Mart is general merchandise. Wal-Mart can also be classified as hypermarket. Hypermarkets are similar to big-box stores. The business of hypermarket is decisive on high volume, and low margin of sales. Wal-Mart is a typical supercenter covers around 150,000 square feet to 235,000 square feet area. It is the combination of supermarket and departmental stores, mainly situated in suburban or out of town locations. More than 2 lac brands can found here.

Whereas Supermarket is a store based upon self service. It presents a huge range of food and household merchandise, divided into sectors. The range of foods and products are limited here rather than supermarket. There is a huge difference between the inventories of these two companies. It is because Wal-Mart sells more than 2 lac of different type of products whereas Safeway is limited with its narrow range of food and household products. Net PP&E are almost same (60%) in case of both the companies, because both of them are involved in retail business.

The cash of Safeway is also less than Wal-Mart is due to the size of the business. Wal-Mart is more capable of generating cash in a higher volume to its variety of products. Adobe vs. Hewlett-Packard Adobe Systems Inc. is a software development company and Hewlett-Packard Company is a computer manufacturing company. In a computer manufacturing company, heavy processes are driven for manufacturing new products. The workers are needed to perform a specific task. After the completion of one task the next task can be performed by the next worker.

A software development company includes research, development of new product, prototyping, modification, reuse, re-engineering, and maintains of other activities. Hewlett is having fixed assets near about 2 times higher than Adobe. As Hewlett is a manufacturing company it needs more instruments and equipments than Adobe. In case of both short term and Long term debt, Adobe has none of these two because it is a service based company. It does not need extra money to run its business. In case of Hewlett the value of both short term and long term debt is higher.

As the company runs factories, it needs money from outside to run its business. Amazon vs. Consolidated Edison, INC Amazon.Com is an internet retailer and Edison Inc has its business on electric utility. When a

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Ratios Tell A story assignment Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1477006-ratios-tell-a-story-assignment
(Ratios Tell A Story Assignment Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/finance-accounting/1477006-ratios-tell-a-story-assignment.
“Ratios Tell A Story Assignment Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/finance-accounting/1477006-ratios-tell-a-story-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Ratios Tell A story assignment

Flour Mixtures, Fruits and Vegetables

The fat used prevents the proteins in the flour from sticking together; making due: assignment 4: Flour Mixtures, Fruits & Vegetables Part Identifying Flours Flour comes in many varieties.... lassification of the fruitName of the fruitWhen is the fruit in seasonHow can you tell when the fruit is ripedrupecherryMid may to mid augustBy the outer skin color- red/ as soon as birds start eating them....
5 Pages (1250 words) Assignment

Design and Evaluation of a Wind Turbine in Urban Environment

This paper “Design and Evaluation of a Wind Turbine in Urban Environment” seeks to examine the significance of sustainable energy sources such as wind, which is a widely distributed energy resource.... Using the power of wind is not at all new, thousands of years ago, ancient peoples would rely on wind power....
21 Pages (5250 words) Assignment

Mathematical Models

a) The governing equations of fire simulation are represented by the conservation equations of mass, energy and momentum for fluids which obey Newton's Law of Viscosity.... This therefore implies that the flame is taken as a fluid whose shear stress is directly proportional to… This equation states that for any closed system, the mass is constant throughout....
11 Pages (2750 words) Assignment

The Ageism

This paper ''The Ageism'' tells that There are many influences through the generations that may become a part of the counseling session.... The portrays older people as unhealthy, which is sometimes how many people perceive anyone who is old.... There can be intergenerational problems that may come to the counseling session....
6 Pages (1500 words) Assignment

Process Improvement in Business

This will help us in the understanding and appreciation of Process Improvement Application assignment (PIAA) in any system, for total quality management (TQM).... In the report, it is stated that in every business and general life, there is a need for improvement on how things are done....
6 Pages (1500 words) Assignment

Analysis of Complete Web Solutions Company

Identify possible indicators of problems among staff members such as high labor turnover ratios and high levels of absence Web designing is concerned with the appearance of the site and it is usability by the customer.... The author's objective in this paper is to explore services, marketing approaches, organizational structure, management of change and financial control as the new manager of Complete Web Solutions Company which offers web designing and developing services to private businesses… Measure the volume of staff activity....
13 Pages (3250 words) Assignment

Business Analysis for Greens Electrical Store

Thereafter the proposed solutions have been assessed The proposed solutions have been assessed in order for the researcher as well as the readers to adjudge the efficacy of each of the solutions in terms of addressing the problems identified in part one of this assignment.... The purpose of this report is to provide solution approach to the problems of buying a property for a startup store like the Green's Electrical store....
14 Pages (3500 words) Assignment

Does the Use of Reading Strategies in Secondary Math Classes Help Increase Student Achievement

is a perfect example of an assignment on education.... is a perfect example of an assignment on education.... … The paper "Does the Use of Reading Strategies in Secondary Math Classes Help Increase Student Achievement?... nbsp;Most people think of creativity as the ability to express new ideas either visually or in writing....
9 Pages (2250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us