This also justifies the large value of inventory previously pointed out when the current ratio was calculated.
The debt to assets ratio will show the leverage of the company and evaluate the financial risk at Wal-Mart. In 2007, the debt to assets ratio at Wal-Mart was 0.216. The financial leverage used by the company is quite small, but the explanation for this resides not necessarily in the small value of debt (as we have seen previously, the company does use this as an important method of financing its activities), but in the very high value of the assets, part of these being financed by shareholders' equity. Things like markets and buildings are worth the largest part of the total assets (property is listed at $109,798 million in 2007).
The times interest earned ratio shows the company's ability to meet all its assumed debt obligations. In our case, in 2007 Wal-Mart's times interest ratio was 13.198. This shows a solid approach to financial issues, the company being able to cover its interest obligations...
54 0.54 Asset Turnover 0.35 0.28 Net Assets / Total Assets 0.34 0.34 For these calculations, it is assumed that net assets is defined as total nets, net of liabilities (aka shareholder's equity). The asset management at this firm has changed little over the course of the past year. The only ratio in which a change is noted is the asset turnover, and that is more related to the fact that operating revenue saw an increase of 27.7%
Ratios at Coca Cola Current Ratio Operating Margin Net Profit margin Return on Equity Current Ratio The current ratio provides a quick yet accurate assessment of a company's ability to meet its short-term obligations and determines the degree of liquidity the company has. This gives a quick snapshot of the basic financial health of the company and its value at a given point in time (that is, not counting the value of operations), with the
Small Business Owner: Financial Ratios Understanding concepts Financial analysis is one of the most reliable means of assessing an economic agent as it relies on quantitative data, which is unbiased, objective and which can be extrapolated. Still, despite these advantages of financial analysis, fact remains that its results can generate relative findings based on the characteristics of the assessed company. For instance, while a small size company would be more interested in
Jones vs. Smith Profitability Ratio's Jones Smith Profit Margin Return on assets Return on equity Liquidity Ratios Current Ratio Quick Ratio If I were a credit manage I would approve a short-term trade credit to Smith before I would to Jones since their current and quick ratios are both higher. However, given the fact that all of the liquidity ratios were higher than one, I would probably offer them both a short-term line of credit. If I were an investor
Nike's current ratio slightly improved, indicating higher liquidity and an improvement in its ability to meet short-term debt obligations. This did not reflect an increase in inventory, because the company's Quick ratio grew by approximately the same percent. Quick Nike's Quick ratio improved by approximately 3.5%, indicating an improvement in the company's cash position or a decrease in its short-term debt obligations. This might have a lot to do with the
Ratio 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
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