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.
The objective of this study is to carry out the ratio analysis of the company between 2009 and 2011.
Current Ratio
The current ratio assesses a company ability settle its short-term obligations. A current ratio below 1 reveals that the company is not in good financial health. Overview of the current ratio of the company reveals that it is in good financial health and will be able to settle its short-term obligation because its current ratio between 2007 and 2011 is more than 2 despite that the company current ratio was decreasing between 2007 and 2011.
Quick Ratio
The quick ratio is the ability of a company to meet its short-term obligation. However, quick ratio excludes the inventories. Analysis of the company quick ratio reveals that the company's quick ratio is decreasing between 2007 and 2011 from 1.64 to 0.97.
Times Interest Earned
This is a tool to measure a company ability to meet its debt obligation. However, the company Times Interest Earned is decreasing from 5.60 in 2007 to 3.50 in 2011 revealing that the company is a good position to settle its debt.
Account Receivable Turnover
Accounts receivable turnover measures the number of times a company collects its accounts receivable in a given year. The company Account Receivable Turnover declines from 5.60 in 2007 to 4.20 in 2011.
Days to Collect Receivables
Days to Collect Receivables is the number of days a company receives payments owed them.The company number days to collect account in a year increased...
The company inventory turnover declines between 2007 to 2011.
Days to Sell Inventory
This analysis shows the number of days to sell the inventory. The lower the number of days, the better for the company. The analysis of the company days to sell inventory reveals that the number of days increased from 108.63 days in a year in 2007 to 179.80 days in 2011.
Net Sales Divided by Tangible Assets
The analysis measures the rate a company is able to generate sales from its tangible assets. Analysis of the company shows that the company fixed asset turnover is stable between 2007 and 2011.
Profit Margin
The profit margin calculates the amount earned from every dollar. In 2007, the company earned 0.14 cents from every dollar earned from selling its products, however decreased to 0.13 cents in 2011.
Return on Asset
The return on asset reveals that the efficient way a company is using the asset to generate earnings. The company return on asset is good between 2007 and 2011.
Return on Equity
The return on equity reveals that the efficient way a company is using the equity to generate earning. The company return on equity was decreasing from .11 in 2007 to .5 in 2011.
Earning Per Share
The Earning Per Share is an indicator of the company level of profitability showing the portion of the…
Finance Assessment of the Financial Performance of UPS and FedEx The Companies UPS FedEx Selected Financial Data Ratio 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
Starbucks Ratio Analysis Ratio analysis is a tool that is beneficial in undertaking quantitative analysis on figures found on financial statements. Ratios provide a common approach for comparing financial strength and performance of two or more companies. Imperatively, ratios can divulge a company’s financial strength or weakness in addition to divulge trends regarding business conditions and profitability (Noreen, Brewer, and Garrison, 2017). The main purpose of this assignment is to perform
Ratio 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. Ratio
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
Ratio 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 HRG is fairly low -- 1.7% - reflecting that its earnings are
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 Busch and a ratio of 1.4 for Boston Beer. The numbers show a high risk in case of Anheuser Busch (surpassing more than twice the industry mean of 2) and a very stable Boston