Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
6. Debt ratio Earnings per share of common stock
The organization's debt ratio has increased slightly compared to the previous year, but still remains significantly below the industry average. This virtually means that the company is strong as it uses less debt to support its operations, compared to other companies in the industry.
7. Times-interest-earned ratio
The times interest earned ratio is significantly higher than the industry average, meaning that the firm is better able to pay its debt. This adds to the internal organizational strengths.
8. Rate of return on net sales
The rate of return on sales is comparable to the industry averages and is even higher than the same ratio through 2011. This means that the company should not face any major concerns regarding this financial indicator.
9. Rate of return on net assets
The rate of return on assets is also of no major concern for the company, since it is comparable with both 2011, as well as the industry averages.
10. Rate of return on common stockholders' equity
The return on equity is lower than the same indicator in 2011, but higher than the industry average, meaning that it still represents an organizational strength.
The earnings per share of common stock are equal to the industry averages and they are higher than the values in 2011. This means that the indicator should not raise any concerns for the economic agent.
12. Price earning ratio
The PE ratio is higher than its value in 2011, but still lower than the industry average, meaning that it represents an organizational weakness.
13. Book value per share of common stock
The book value per share of common stock is higher than it was during the previous year, but it is still lower than the industry average. This means that it represents an organizational weakness as the stability of the share after all debts are paid is limited (Investopedia, 2012).
Based on the computation of the ratios above, it becomes obvious that the future strategic efforts of the company should focus on consolidating its short-term ability to repay debt, as well as the performances of its stock.
References:
Shim, J.K., Siegel, J.G., 2008, Financial management, 3rd edition, Barron's Educational Series, ISBN 0764139401
Investopedia, http://www.investopedia.com last accessed on January 17, 2012
Financial Management Firm Organization False. The form of business organization direct affects the taxation structure of the firm, particularly with regard to flow-through taxation on some forms (sole proprietorship, most partnerships) and not on others (most corporations). Firm Organization False. The partners in a regular partnership have a high degree of liability. Partnership True. Most partnerships remains fairly small due to these constraints. Proprietorship True. In a sole proprietorship, the owner holds all the capital, making it difficult
CanGo's financial condition can be measured by analyzing its financial statements, in particular by conducting a ratio analysis. The company is liquid. Its current ratio is very high at 5.39 and quick ratio likewise at 4.53. These figures are typical of a company that is in great financial condition. These figures are bloated, however, by the fact that much of the current assets are in the form of accounts receivable.
0 $0.0 Net income available to common stockholders $17,758.5 $16,468.7 Common dividends $5,400.0 $5,048.0 Addition to retained earnings $12,358.5 $11,420.7 Calculated Data: Operating Performance and Cash Flows 2012 2011 Net operating working capital (NOWC) $1,464.0 ($2,108.0) Total operating capital $144,629.0 $136,320.0 Net Operating Profit After Taxes (NOPAT) $19,182.7 $17,926.7 Net Cash Flow (Net income + Depreciation) $17,758.5 $16,468.7 Operating Cash Flow (OCF) $19,182.7 $17,926.7 Free Cash Flow (FCF) $10,873.7 N/A Calculated Data: Per-share Information 2012 2011 Earnings per share (EPS) $5.26 $4.76 Dividends per share (DPS) $1.60 $1.46 Book value per share (BVPS) $22.63 $20.61 Cash flow per share (CFPS) $5.26 $4.76 Free cash flow per share (FCFPS) $3.22 N/A LIQUIDITY RATIOS (Section 3.2) Industry 2012 2011 Average Liquidity ratios Current Ratio 0.83 0.88 1 Quick Ratio 0.22 0.23 0.3 ASSET Management RATIOS (Section
Financial managers and CEO's play important roles in ensuring that organizations meet their specific goals. The skill levels for both positions are high and require a great deal of patience and experience. The purpose of this discussion is to determine whether being a financial manager is the best preparation for later becoming a CEO. Role of the Financial Manager According to the Bureau of Labor, financial managers must have a bachelor's degree
Financial statements are produced in order to help stakeholders understand the financial condition of the entity in question. Different types of entities, however, have different reporting requirements. A self-employed individual has very different needs from a limited company, and these are different from not-for-profit organisations as well. This paper will examine some of these differences. The first class of business is the self-employed individual. There are no reporting standards for self-employed
But these changes, materialized in increased sales and consequently revenues, improved quality of the products and services offered as well as the technologies used in the manufacturing process have supported the development of the corporation. From a financial point-of-view, they created the image of a strong and reliable company. The reasons why this change has financial implications is a simple one: a stronger company is better perceived by the market