Ratio Analysis Essays (Examples)

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atio Analysis: Midwest Health Plan Inc.
Financial ratios are critical for decision making purposes. Some of those who utilize information derived from the analysis of financial statements include but they are not limited to lenders, managers, the government and stockholders. In this text, I amongst other things compute two financial ratios from Midwest Health Plan, Inc. In an attempt to determine the financial health of the organization.

Midwest Health Plan, Inc. atio Analysis

When it comes to decision making in healthcare organizations, the relevance of ratio analysis cannot be overstated. To begin with, managers of a health care organization can use ratio analysis to identify changes in the financial condition of an entity by way of comparing current financial period ratios with previous financial period ratios. For instance, if an organization (through the utilization of liquidity ratios) is found to be having difficulties in settling its debts, corrective measures can be taken promptly….

Ratio Analysis in Healthcare Organizations
Professional affiliation

Healthcare providers often face the task of managing their facilities under very tight budgets. Whether the provider is a big healthcare organization or a newly founded one, it all comes down to financial analysis.

Financial analysis entails the use of ratios and this process of using ratios to rate your company's performance is what is known as financial ratio analysis. There are several ratios computed in the financial analysis and these ratios are then analyzed in a more intensive manner using several criteria. For a healthcare provider, a comparison of the ratios with other ratios of other healthcare providers will ultimately give a clear picture of the performance and effectiveness of your organization. This needs not to be done by a good financial analyst who can give the management adequate information as to the results of the ratios. For the management the financial ratio analysis is….

atio Analysis
The Balance Sheet and the Statement of Income are essential, but they are only the starting point for successful financial management. Apply atio Analysis to Financial Statements to analyze the success, failure, and progress of your business.

atio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years, watching especially for any unfavorable trends that may be starting. atio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them.

Balance Sheet atio Analysis:

Important Balance Sheet atios measure liquidity and solvency (a business's ability to pay its bills as they come due) and leverage (the extent to….

Anheuser, on the other hand, had larger spread operations and could simply use its stance on the market to cover short-term liabilities.
In terms of financial leverage, the charts indicate a ratio of 4.7 for Anheuser usch and a ratio of 1.4 for oston eer. The numbers show a high risk in case of Anheuser usch (surpassing more than twice the industry mean of 2) and a very stable oston eer corporation. It seems that the winning strategy is to develop gradually, to offer your products to an increasing number of possible consumers, but not to overdue it and stick to your fundamental beliefs (in the case of oston eer - developing traditional beer with finest ingredients). Again, we notice the same financial reckless approach in the of Anheuser and the traditional stable financial approach for oston eer.

The Return on Assets for Anheuser-usch was of 12.6% for 2006, while the….

atio Analysis
a) The price-earnings ratio reflects two things -- the company's earnings and the market price. By no means is there a law that says one firm's P/E ratio should be in line with either the market or the competitors. First, an explanation of the earnings. The earnings component of the P/E is past-looking. The profit margin for HG is fairly low -- 1.7% - reflecting that its earnings are quite low. With low earnings as the denominator, HG will have a much higher P/E even with the same stock price. So in part, HG benefits from having a weak denominator.

The other aspect of the P/E ratio is the price. The price reflects the expected future cash flow of the company. The market therefore expects higher growth in the future from HG than what Kingfisher offers (Investopedia, 2013). So part of the misunderstanding is that the P/E ratio only partially….

The ratios are symptoms rather than problems. Thus, we see the emergence of ratios as a diagnosis tool rather (Johnson, 2008). These tools must then be used in concert with more in-depth analysis techniques and the collect and interpretation of other information. Ratio analysis alone will yield little and the prevailing thought today supports finding better ways to integrate ratio analysis within the context of overall understanding of a firm's situation (Dess, et al., 2004).
Historically, the development of ratio analysis as a technique has been ad hoc. As a result, one of the steps taken in recent years, albeit more by academics than professionals, has been to attempt to develop a consistent system for conducting ratio analysis. Nissim & Penman (2001) developed a framework for such a system. Ratios are used in the context of a hierarchy, based on the ability of a given ratio to predict financial failure….


e) Total asset turnover = evenues / Assets = 1,680,000 / 1,250,000 = 1.34 lower that its previous values in 2005 and 2006 and also inferior to the industry average, meaning that the financial service organization has revealed a reduced ability to generate sales through assets.

f) Debt ratio = Total Debt / Total Assets = 666,250 / 1,250,000 = 53.30% - reduced comparative historical evolutions meaning that the company's strength has increased as reliance on debt has been reduced; however, comparative to the industry average, the ratio remains superior, meaning that Vanguard relies on debt more than any other organizations

g) Times interest earned = EBIT / Interest Charges = 70,720 / 15,600 = 4.53 -- this is the highest ratio registered by Vanguard so far to reveal its strength. Significantly higher than its past values and the industry average, the times interest earned reveals that the company is highly capable….

7%
The company tangible assets consist of the plant, property, equipment such as the fleet of aircrafts that the company uses for its business operations. Other tangible assets include various building the company is using for business operations. The company tangible assets also include company computers, brand names and various computer software than the company is using to improve its business operations. However, the company intangible assets declined by 1.2% between 2010 and 2011. The company loan notes also declined by 18.2% between 2010 and 2011.

Apart from the non-current asset, other aspect within the company balance sheet is the current asset. From the Table below. The trade and other receivable declined by 17.6%. However, the company was able to increase restricted cash by 317% and money market by 15.3%. The company also increased the derivable financial instrument by 57%.

£Million

2011

2010

Changes

Percentages

Current Asset

Asset held 4 sale

73

Trade & other eceivables

(29)

(17.6%)

Derivable Financial Instrument

83

53

30

57%

estricted Cash

90

23

73

Money Market Deposit

40

15.3%

Cash….

Financial Analysis of Snead's Dry-Cleaning
atios measure the strategy of highlighting the relationships of items in a company's financial statements. In essence, ratio analysis assists in monitoring and reviewing the strengths or weakness of a company using a range of financial perspectives. In other words, ratio analysis assists in evaluating organizational financial and operating performances, which include solvency, efficiency, profitability, and liquidity. The trends of a company's ratios can be used to evaluate whether its financial systems are improving or deteriorating. (Williams, Susan, Mark et al. 2008). In essence, ratio analysis serves as a cornerstone to fundamental analysis. External stakeholders such as stockbrokers, consultants, shareholders, and governments can use the ratio analysis to determine the strength or weakness of a company. (Nissim, 2001).

Objective of this project is carry out the ratio analysis of the "Snead's Dry-Cleaning Company." The paper uses the key ratios to determine the strengths or weakness of the….

Financial Ratio Analysis
PAGES 3 WORDS 930

atio Analysis
Company Overview

South Nassau Communities Hospital is a healthcare organization that delivers wide range of healthcare services for the communities of the Oceanside in New York. The organization offers general and specialty health services such as medical services, and surgical services for the varieties of patients' health cases.

The financial results of the South Nassau Hospital at the end of the 2012 reveals that the Hospital recorded the revenue of $400 Million compared to the 2011 revenue of $380 making the organization to record the excess gains and revenue over expenses of above $5.0 Million compared to $2.6 million recorded in 2011. (South Nassau Communities Hospital, 2013).

The paper carries out the ratio analysis of the South Nassau Community Hospital to evaluate its financial performances, and the paper uses the organizational 2012 financial statements for the analysis.

atio Analysis

atio analysis is a financial tool to analyze the financial performance of an organization. In….

atio Analysis: Setbacks
atio Analysis: Potential Pitfalls

In basic terms, ratio analysis comes in handy in the evaluation of a firm's current financial position and the direction this position is expected to take in the future" (Besley and Brigham, 2008, p. 250). That ratio analysis is a critical tool when it comes to the analysis of an entity's performance is not an overstatement. As a matter of fact, most investors rely on ratio analysis in the analysis of the financial statements of various companies so as to determine the most appropriate entity in which to invest.

Here are some ratios for my week six company, i.e. Caterpillar -- for the year ended Dec 31st 2013.

Liquidity ratio

Current ratio = current assets/current liabilities = 38,335,000/27,297,000 = 1.40

Profitability ratio

eturn on equity = Net Income/shareholder equity = 3,789,000/20,811,000 = 0.18

Efficiency ratio

eceivables turnover = Annual credit sales/accounts receivable = 55,656,000/18,729,000 = 2.97

It should be noted that although useful,….

atio and Financial Analysis of Computron
atio analysis is the overall numerical values of an organization collected from income statements and balance sheets of a company to evaluate its financial performances. Investors, creditors, and potential shareholders used the ratios to evaluate the financial performances and financial health of a company. The management can also use the ratios to analyze the organizational performances. Profitability ratio, current ratios and efficiency ratios are the three groups of ratios used to evaluate organizational financial performances. Profitability ratios measure the ability of a company to turn its assets into profitability. The current ratios measure the ability of a company in using its current assets to meet its short-term obligations. Efficiency ratios reveals the ability of a company to utilize its inventory or assets efficiently.

b. This section calculates the company current ratio and quick ratios.

Current ratio =Current Asset/Current Liabilities

Current ratio = $2,680,112 / $1,039,800 = 2.6

Quick atios….

Company Ratio Analysis
PAGES 6 WORDS 2191

Finance
Assessment of the Financial Performance of UPS and FedEx

The Companies

UPS

FedEx

Selected Financial Data

atio Analysis

Short-Term Solvency

Long-Term Solvency

Asset Management

Profitability

Market value

For any investor assessing potential investments there will be an evaluation of the potential investment, looking at the financial performance using vertical and horizontal analysis. Further context may be given to any analysis by looking at firms in a boarder context for example, examining two firms together, especially where they are close comparators. This report will look at two major logistics firm; UPS and FedEx. The paper will start by looking at the background of the two firm, present selected but pertinent financial data and then undertake a financial analysis using ratio analysis. The analysis will then be used to assess each company's performance.

2.

The Companies

UPS

UPS is the world's largest shipment firm; the company's full name is United Parcels Service (Yahoo Finance, 2014). The firm which focuses on the delivery of packages, transport provision, logistics….

Plume and Arrow: atio Analysis
Financial ratios are regarded important decision making tools for financial analysts, business owners, investors and lenders. In addition to helping users determine the stability or profitability of a given entity, ratios can also be used to diagnose the underlying problems of a given business. This text seeks to determine which company between Plume and Arrow is healthier and hence less risky from a financial perspective based on the interpretation of the ratio computations provided.

To begin with, Plume's OE happens to be higher than that of Arrow. This effectively means that Plume's shareholders are better off than those of Arrow given the ability of the former to earn a higher profit than the latter for each invested dollar. When it comes to OA, Porter and Norton (2010) define the same as "a measure of a company's success in earning a return for all providers of capital." In….

Pepsi atios
Pepsi Performance Assessment

atio Analysis

Based on the financial ratios shown in the table in Appendix A, a general assessment of Pepsi's strength and performance over the past several years and in its current position can be made. As a measure of liquidity, the current ratio shows that Pepsi definitely appears to be struggling, though it has made significant improvements since 2009. Current assets are still slightly lower than current liabilities, however, and were only higher by a very slim margin in 2010; a current ratio that is more strongly and consistently above 1 would mean that the company has reached a stable and desirable level of liquidity. Asset management as demonstrated by the receivables turnover rate is quite strong for the company, though, indicating that its collection policies and procedures are more than adequate to meet the company's operational needs. Only slightly more than a tenth of the company's sales….

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3 Pages
Essay

Economics

Ratio Analysis Midwest Health Plan Inc Financial

Words: 945
Length: 3 Pages
Type: Essay

atio Analysis: Midwest Health Plan Inc. Financial ratios are critical for decision making purposes. Some of those who utilize information derived from the analysis of financial statements include but they…

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4 Pages
Essay

Business - Management

Ratio Analysis in Healthcare Organizations Professional Affiliation

Words: 1035
Length: 4 Pages
Type: Essay

Ratio Analysis in Healthcare Organizations Professional affiliation Healthcare providers often face the task of managing their facilities under very tight budgets. Whether the provider is a big healthcare organization or a…

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5 Pages
Term Paper

Business

Ratio Analysis the Balance Sheet and the

Words: 1294
Length: 5 Pages
Type: Term Paper

atio Analysis The Balance Sheet and the Statement of Income are essential, but they are only the starting point for successful financial management. Apply atio Analysis to Financial Statements to…

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10 Pages
Term Paper

Business

Ratio Analysis of Different Companies

Words: 2999
Length: 10 Pages
Type: Term Paper

Anheuser, on the other hand, had larger spread operations and could simply use its stance on the market to cover short-term liabilities. In terms of financial leverage, the charts…

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11 Pages
Research Paper

Business

Ratio Analysis A the Price-Earnings Ratio Reflects

Words: 3219
Length: 11 Pages
Type: Research Paper

atio Analysis a) The price-earnings ratio reflects two things -- the company's earnings and the market price. By no means is there a law that says one firm's P/E ratio…

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7 Pages
Thesis

Business

Ratio Analysis Has Become One

Words: 2290
Length: 7 Pages
Type: Thesis

The ratios are symptoms rather than problems. Thus, we see the emergence of ratios as a diagnosis tool rather (Johnson, 2008). These tools must then be used in…

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2 Pages
Thesis

Economics

Ratio Analysis the Vanguard Group

Words: 590
Length: 2 Pages
Type: Thesis

e) Total asset turnover = evenues / Assets = 1,680,000 / 1,250,000 = 1.34 lower that its previous values in 2005 and 2006 and also inferior to the industry…

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9 Pages
Essay

Business

Ratio Analysis to Illustrate the

Words: 2686
Length: 9 Pages
Type: Essay

7% The company tangible assets consist of the plant, property, equipment such as the fleet of aircrafts that the company uses for its business operations. Other tangible assets include various…

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5 Pages
Case Study

Business

Ratio Analysis of Snead's Dry-Cleaning Company

Words: 1423
Length: 5 Pages
Type: Case Study

Financial Analysis of Snead's Dry-Cleaning atios measure the strategy of highlighting the relationships of items in a company's financial statements. In essence, ratio analysis assists in monitoring and reviewing the…

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3 Pages
Essay

Healthcare

Financial Ratio Analysis

Words: 930
Length: 3 Pages
Type: Essay

atio Analysis Company Overview South Nassau Communities Hospital is a healthcare organization that delivers wide range of healthcare services for the communities of the Oceanside in New York. The organization offers…

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2 Pages
Essay

Accounting

Setbacks of Ratio Analysis

Words: 572
Length: 2 Pages
Type: Essay

atio Analysis: Setbacks atio Analysis: Potential Pitfalls In basic terms, ratio analysis comes in handy in the evaluation of a firm's current financial position and the direction this position is expected…

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4 Pages
Case Study

Economics

Financial and Ratio Analysis of Computron

Words: 1087
Length: 4 Pages
Type: Case Study

atio and Financial Analysis of Computron atio analysis is the overall numerical values of an organization collected from income statements and balance sheets of a company to evaluate its financial…

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6 Pages
Term Paper

Economics

Company Ratio Analysis

Words: 2191
Length: 6 Pages
Type: Term Paper

Finance Assessment of the Financial Performance of UPS and FedEx The Companies UPS FedEx Selected Financial Data atio Analysis Short-Term Solvency Long-Term Solvency Asset Management Profitability Market value For any investor assessing potential investments there will be an evaluation of the…

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2 Pages
Essay

Economics

Plume and Arrow Ratio Analysis Financial Ratios

Words: 716
Length: 2 Pages
Type: Essay

Plume and Arrow: atio Analysis Financial ratios are regarded important decision making tools for financial analysts, business owners, investors and lenders. In addition to helping users determine the stability or…

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3 Pages
Essay

Business

Pepsi Ratios Pepsi Performance Assessment Ratio Analysis

Words: 898
Length: 3 Pages
Type: Essay

Pepsi atios Pepsi Performance Assessment atio Analysis Based on the financial ratios shown in the table in Appendix A, a general assessment of Pepsi's strength and performance over the past several years…

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