Financial Ratio Analysis Essays (Examples)

Filter results by:

 

View Full Essay

Financial Ratios Analysis of a Prospective Borrower

Words: 588 Length: 2 Pages Document Type: Essay Paper #: 46751238

Financial atios of a Prospective Borrower

Financial ratio analysis is a quantitative tool used to analyze financial standing of a business entity. The ratio analysis can also be used to compare financial capabilities of companies in different industries. This paper discusses how financial ratios can be used to answer questions about the management, marketing, and production capabilities of a prospective borrower. The paper also identifies ratios that demonstrate management competency and are mandatory to a financial services regulator.

atios demonstrating Production, Management, and Marketing Capabilities of a prospective Borrower

In the contemporary business environment, firms rely on loans from banks to improve their business operations. However, before a bank or other financial institutions can offer loans to organizations, they have to evaluate management competency, production, and marketing capabilities of a prospective borrower. The bank uses different financial ratios to analyze production efficiency of a prospective borrower.

An efficiency ratio is…… [Read More]

Reference

Investopedia (2015). Ratio Analysis: Using Financial Ratios. Investopedia Inc.

Morning Star. (2016). Apple Inc. AAPL. Morning Star Inc.
View Full Essay

Analyzing Financial Statement Analysis

Words: 1176 Length: 3 Pages Document Type: Essay Paper #: 43568694

Financial statements are essential in measuring and assessing the real financial strength and position of a company. These financial statements provide quantifiable data for reports and help an individual to obtain an understanding of a company's forthcoming forecasts and risks (Weygandt et al., 2008). The purpose of this paper is to review the financial statement of Doctors Hospital in the two years 2013 and 2014 and analyze these financial statements and its financial well-being. In addition, the paper will outline the role played by advanced practice nurses in the financial welfare of the organization.

Implications of Economics for Advance Practice Nurses. The ole of the Advance Practice Nurses in the Financial Wellbeing of Healthcare Organizations

In general, very minimal studies have been undertaken in the United States regarding cost effectiveness and economic impact of primary care delivered by advanced practice nurses. esults from different research studies indicate that, on the…… [Read More]

References

Baker, H. K., Powell, G. E. (2005). Understanding Financial Management: A Practical Guide. United Kingdom: Blackwell Publishing.

Hughes, R. G., & O'Grady, E. T. (2008). Advanced practice registered nurses: The impact on patient safety and quality. In Naylor, M. D., & Kurtzman, E. T. (2010). The role of nurse practitioners in reinventing primary care. Health Affairs, 29(5), 893-899.

Naylor, M. D., & Kurtzman, E. T. (2010). The role of nurse practitioners in reinventing primary care. Health Affairs, 29(5), 893-899.

Nursing World. (2012). ADVANCED PRACTICE NURSING: A NEW AGE IN HEALTH CARE. American Nurses Association. Retrieved 14 January, 2016 from: http://www.nursingworld.org/FunctionalMenuCategories/MediaResources/MediaBackgrounders/APRN-A-New-Age-in-Health-Care.pdf
View Full Essay

Financial Ratios Calculation & Interpretation

Words: 899 Length: 2 Pages Document Type: Essay Paper #: 28373990

This ratio eliminates the stock figure from that of current assets and like the current ratio; it is used to measure the liquidity of a firm. The quick ratio may in some instances be preferred over the current ratio as it is inherently difficult to turn some assets into cash. In regard to the two companies, the quick ratio brings out Plume Inc. As being more risky as it is more likely to default on its short-term obligations. According to Tracy (2009), the quick ratio of a firm should ideally be grater than 1.

Part B: Health and isk Analysis in Brief

Looking at the debt to asset ratio, Arrow Company comes across as being more risky than Plume Inc. This is basically because its higher debt to assets ratio exposes it to a larger amount of debt which both investors and creditors may be wary of. Further, the higher…… [Read More]

References

Gill, J.O. (1999). Understanding Financial Statements: A Primer of Useful Information.

Cengage Learning.

Tracy, J.A. (2008). How to Read a Financial Report: Wringing Vital Signs Out of the Number. John Wiley and Sons.
View Full Essay

Financial Ratios From Income Statements

Words: 521 Length: 2 Pages Document Type: Essay Paper #: 84970181

Financial atios From Income Statements:

Accounting in hospitality management is carried out to identify and document financial issues and produce information regarding an organization's assets, liabilities, and investments. Through this process, the management of a hospitality establishment understands and interprets financial ratios, which are crucial for basic control of operations in the establishments. Some of the most important financial ratios in hospitality accounting include average daily rate, occupancy percentage, room sales to total sales, cost of food sold percentage, profit margins for rooms and F&B, housekeeping cost per occupied room, and cost of beverage sold percentage. These financial ratios can be determined or worked out from a company's income statements or operational data (Casado, 2006, p.103). For the 310-room hotel in Costa Mesa, California, the Occupancy percentage is 7,755: 310 = 25.02%

Cost of labor percentage for rooms is 103,202: 437,433 = 23% for F&B is 113,349: 302,188 = 37.5%…… [Read More]

Reference:

Casado, M.A. (2006). Hospitality Accounting. In Hospitality management: a capstone course

(chap 9, pp.97-105). Upper Saddle River, NJ: Pearson Education, Inc.
View Full Essay

Financial Accounting a Ratio Analysis

Words: 1423 Length: 5 Pages Document Type: Essay Paper #: 72738509

The industry average current ratio is 2.5 (MSN Moneycentral, 2009), so the Gap has less capacity to meet its current obligations than many of its peers. However, in the retail industry most firms have a large portion of their current assets tied up in inventory, which distorts the current ratio figures higher. The Gap's figure of 1.855 is strong and indicates that the company will have little difficulty in meeting its upcoming obligations.

Overall, the liquidity measures provide an indication of the company's short-term health. Low amounts of working capital or a poor current ratio can indicate that the firm is in short-term distress. The figures for the Gap in 2008 do not indicate a firm in financial distress. Rather, they indicate that the company will have little difficulty in meeting its upcoming financial obligations. The company has strong working capital figure and a high current ratio. The latter is…… [Read More]

Works Cited:

The Gap Inc., 2008 Form 10-K. Retrieved August 17, 2009 from http://www.gapinc.com/public/Investors/inv_fin_sec_filings.htm

MSN Moneycentral: The Gap Inc. (2009). Retrieved August 20, 2009 from http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=ProfitMargins&Symbol=GPS
View Full Essay

Financial Ratios for Landry Restaurants

Words: 840 Length: 3 Pages Document Type: Essay Paper #: 42215688



Therefore, I do believe that qualitative research is necessary. The financial statements can reveal much, but there are definitely instances in which the financial statements require contextual understanding for proper interpretation. Without this understanding, the firm's numbers may only reveal raw data. Raw data can be interpreted any number of different ways, so it is essential that qualitative analysis be conducted in order to place the numbers within a framework that will make understanding easier. or example, Landry's is taking on debt, but we know from the company's statements that this is to finance expansion and that hopefully when those properties are open, the returns will begin to improve.

How the firm makes money is an important consideration. This can help to not only place past performance into perspective but also to provide greater understanding of the firm's future prospects as well. Competitive advantages can be derived sometimes from the…… [Read More]

Free Cash Flow = Cash from Operating Activities -- Capital Expenditures (aka Cash from Investing Activities)

2003: $121,529 -- 189,930 = ($68,401)

2002: $111,637 -- 274,913 = ($163,276)
View Full Essay

Financial Ratio Report

Words: 1078 Length: 4 Pages Document Type: Essay Paper #: 98924988

Financial Analysis

Understanding how a company operates within any industry is dependent upon comprehension of many financial properties. Assessing the financial stability of a company is essential in determining the company's strengths and weaknesses as well as ultimately assessing its profitability. Financial ratios should be considered a useful tool when examining the profitability and efficiency of any company. Some companies are certainly more successful and profitable than others, and pharmaceutical companies in particular seem to have a distinct advantage when measuring financial ratios.

When assessing any organization, for terms of this paper are as follows: Johnson & Johnson, Pfizer and Merck it is important to consider the profitability and efficiency of the company. This is among the first information investors will explore before "investing" in a company. atio analysis is a critical analysis of the financial structure of an organization. There are four categories of ratios that need to be…… [Read More]

References

http://www.investor.jnj.com/trading_stats.cfm?page=ratios

Calculating and Interpreting Financial Ratios. http://aolsearch.aol.com/redir.adp?appname=MS&query=Pfizer%20efficiency%20and%20profitability%20ratios&url=http%3a%2f%2fwww%2efool%2ecom%2fportfolios%2frulemaker%2f2001%2frulemaker010531%2ehtm&datasource=Google&partner=Google&clickedItemRank=2&requestId=cns92890&component=websearch.google.http.tcl&searchType=MS

MBA 681, Fall 2002. "Financial Analysis." http://aolsearch.aol.com/redir.adp?appname=MS&query=Merck%20profitability%20and%20efficiency%20ratios&url=http%3a%2f%2fwww%2emgmtguru%2ecom%2fmgt499%2fTN4%5f3%2ehtm&datasource=Google&partner=Google&clickedItemRank=5&requestId=cns41327&component=websearch.google.http.tcl&searchType=MS
View Full Essay

Financial Strategic Analysis How

Words: 1779 Length: 5 Pages Document Type: Essay Paper #: 77701190

As they are showing the total impact that the activities of business operations are having on its profitability.

When you look at the two different forms of analysis side by side, it is clear that they are playing an interconnected role. Where, business analysis and planning will tell you the various external challenges facing an organization. While financial analysis and planning, will tell you the effect of these issues are having on the balance sheet. This helps Hyrbitech to understand the overall scope of the problems they are facing and how they could adapt to them. As a result, the combination of the two different forms of analysis would identify specific factors that are facing the business and how it is impacting their overall bottom line. This would help Hybritech to seek out alliances and partnerships that could improve collaboration, as well as provide the company with the additional funding…… [Read More]

Bibliography

"Hybritech Incorporated." Darden. N.d. 1- 29. Print.

"Porter's Five Forces Model." Strategic Management. N.d. Print.

"Understanding the Metric Wars." N.d. 427 -- 465. Print

MLA Format. http://owl.english.purdue.edu/owl/resource/747/01/
View Full Essay

Financial Statement Analysis

Words: 640 Length: 2 Pages Document Type: Essay Paper #: 76201757

Marginal Analysis

CEO

Re: Financial Analysis

I have completed my financial analysis of Company G. It is my general impression than Company G. is in good financial health. Thirteen financial ratios were calculated and this analysis shows that the company is generally a mid-range performer. With respect to the liquidity of Company G, that is questionable. The current ratio is within industry norms, but declined in the past year. The acid-test ratio is a weakness, and it has declined in the past year significantly. In the long run, we enjoy a favorable debt ratio. It has increased slightly but still outperforms industry norms. As we have a relatively low level of debt, our interest coverage remains very healthy, and has increased in the past year.

Inventory turnover remains a concern. It was below industry norms last year, and this year has declined further. Sitting on this much old inventory invites…… [Read More]

View Full Essay

Financial Analysis and More Specifically Financial Ratios

Words: 862 Length: 3 Pages Document Type: Essay Paper #: 59341766

financial analysis and more specifically financial ratios has been noted by Finkler, Marc and Baker (2007, p.253) to be important to managers since it can help them in making informed decisions. In this paper, we present the concept of ratio analysis as applied to healthcare facilities.

The concept and purpose of ratio analysis

Financial statement analysis is noted by Flex Monitoring Team (2005) to be very important to managers, boards, payers as well as lenders for them to effectively make the right judgments on the financial health of their organizations. atio analysis is one of the most accepted methods of assessing the financial health of an organization. The data that is used for ratio analysis is derived from income statements and balance sheets. It is a fact that most health care systems, hospitals as well as various other healthcare organizations routinely employ ratio analysis in evaluating their financial condition and…… [Read More]

References

Eichler HG, Kong SX, Gerth WC, Mavros P, Jonsson B. (2004)Use of cost-effectiveness analysis in health-care resource allocation decision-making: how are cost-effectiveness thresholds expected to emerge?. Value Health. 2004 Sep-Oct;7(5):518-28.

Finkler, SA.,Ward, DM ] and Baker, JJ (2007).Essentials of Cost Accounting for Health Care Organizations. Jones & Bartlett Learning,

Flex Monitoring Team (2005). Financial Indicators for Critical Access Hospitals. Available online at http://www.flexmonitoring.org/documents/BriefingPaper7_FinancialIndicators.pdf
View Full Essay

Financial Ratios

Words: 1946 Length: 5 Pages Document Type: Essay Paper #: 44461589

ratio analysis of Google and Microsoft. The initial component of the paper is a rundown of some key ratios and their definitions. Then, the ratios of the companies are calculated and discussed.

atio analysis is a tool by which companies in the same industry can be compared. The use of ratio analysis helps to offset the differences in size between companies -- for example one company may have a larger profit number, but a smaller profit margin, than a competitor. The ratio -- profit margin -- may be a better indicator o which company is actually more profitable. In this analysis, Microsoft and Google will be compared. Microsoft has a variety of multi-billion dollar businesses, including servers, Office and Windows, while Google makes most of its money on advertising sales. Yet, both companies are wildly profitable, and both have similar situations with regards to excess cash flow. They are also…… [Read More]

References

Goldman, D. (2012). Microsoft's $6 billion whoopsie. CNN Money. Retrieved November 18, 2014 from  http://money.cnn.com/2012/07/02/technology/microsoft-aquantive/index.htm 

Google 2012 Annual Report. Retrieved November 18, 2014 from  http://www.sec.gov/Archives/edgar/data/1288776/000119312513028362/d452134d10k.htm 

Microsoft 2012 Annual Report. Retrieved November 18, 2014 from  http://www.microsoft.com/investor/reports/ar12/download-center/index.html 

MSN Moneycentral (2014). Microsoft. Retrieved November 18, 2014 from  http://www.msn.com/en-us/money/stockdetails/financials/fi-MSFT?ocid=qbeb
View Full Essay

Ratios Are One Way to Help Assess

Words: 698 Length: 2 Pages Document Type: Essay Paper #: 17906892

atios are one way to help assess the relative financial strength of an organization. Just as there are numerous ways that organizations can be organized, there are numerous different ratios that can be used to evaluate an organization's working capital and cash. ichard Loth breaks these various ratios into six different broad categories: liquidity measurement ratios, profitability indicator ratios, debt ratios, operating performance ratios, cash flow indicator ratios, and investment valuation ratios (2013). Liquidity ratios are focused on the company's ability to pay off short-term debt and compare a company's liquid assets to its short-term liabilities. Profitability indicator ratios help reveal how well the company is using its assets to generate profit. Debt ratios basically compare a company's debt to its equity or assets, which can help determine the financial strength of the company, indicate its creditworthiness, and warn of impending financial problems. Operating performance ratios focus on specific areas…… [Read More]

References

Cleverly, W., Song, P., & Cleverly, J. (2011). Essentials of Health Care Finance (7th ed.).

Sudbury, MA: Jones & Bartlett Learning.

Zions Business Resource Center. (2005). How to analyze your business using financial ratios.

Salt Lake City: Zions Bank. Retrieved September 24, 2013 from Zions Bank website:  https://www.zionsbank.com/pdfs/biz_resources_book-6.pdf?q=
View Full Essay

Ratios in Order to Evaluate

Words: 1323 Length: 5 Pages Document Type: Essay Paper #: 53951459



In Liz Clairborne's case,

Debt Ratio = Total Debt/Total asset value = 78%.

In Kenneth Cole's case,

Debt Ratio = Total Debt/Total Asset = 77%

As we can see, the debt ratio value is similar in the two companies and shows a reasonable financing of the business with outside financial sources.

The Times Interest Earned value (TIE) shows how much income can decrease in the company without financial problems appearing, as an incapacity to pay the annual interest rates.

At Kenneth Cole, TIE = Earnings efore Interest and Taxes/Interest Expense = 32,890,000/40,000 = 822 times. The value itself may appear ludicrous, but the reason is quite simple. If we look at the statement of cash flows, the cash paid for interest in 2003 is only $40,000, similar to the previous years.

In Liz Clairborne's case, TIE = 392,072/30,509 = 12.85

The large difference between the two companies can be explained…… [Read More]

Bibliography

1. Halpern, Paul. Weston, Fred. Brigham, Eugene. Canadian Managerial Finance. Harcourt Brace & Company. Fourth Edition. 1994. http://finance.yahoo.com/q/co?s=KCP

3. Annual Reports for Kenneth Cole and Liz Clairborne

Halpern, Paul. Weston, Fred. Brigham, Eugene. Canadian Managerial Finance. Harcourt Brace & Company. Fourth Edition. 1994.

Ibid.
View Full Essay

Ratio Analysis of Ladbrokes PLC William Hill PLC and Other Companies Representing the Gaming Industry

Words: 4511 Length: 10 Pages Document Type: Essay Paper #: 56475268

Accounting -- Financial Statement Analysis

Comparison of gaming industry leader Ladbrokes PLC to William Hill PLC and then comparison of both those companies to the rest of the gaming industry reveals the burgeoning market of online/digital gaming. Comparison of the companies' histories, markets and ratios, shows a still-impressive industry titan Ladbrokes PLC being increasingly outgained by another market giant, William Hill PLC, and varying degrees of success among industry also-rans. It appears that the degrees of success or failure are intimately tied to the provision of online/digital gaming experiences to consumers.

Histories and Markets:

Ladbrokes PLC

In 1886 Messrs. Schwind and Pennington formed a partnership as commission agents primarily backing horses trained by Pennington at Ladbroke Hall in Worcestershire. In 1902 they were joined by Arthur Bendir, who named the venture "Ladbrokes" and shifted the focus from backing horses to betting against them, acting as bookmaker and punter (bet placer).…… [Read More]

References

32 Red PLC, n.d.. About 32 Red. [Online]

Available at: http://www.32redplc.com/about-32red/32red-strategy.aspx [Accessed 9 April 2016].

BBC News, 2015. Ladbrokes to merge with smaller rival Coral. [Online]

Available at: http://www.bbc.com/news/business-33647635
View Full Essay

Financial Management Personal Investment

Words: 2754 Length: 10 Pages Document Type: Essay Paper #: 37702682

Financial Management - Personal Investment Decision for a Public Company

Financial Statistics

ationale for Toyota

atio analysis

Stock price analysis

Foreign Interests

Toyota Motor Corporation, which is recognized as is one of the most exhilarating productions in the automobile business these days. The company is one of the most economical corporations all over the world and has appreciated a record setting achievement for a very long time. In the previous years, the worldwide automobile industry has been overwhelmed by soaring gas prices, and hard-hitting environmental protection laws. With that even being said, it has not been a walk in the park for Toyota, but to no gain the company has been one of the most effective establishments so far. Toyota Motor Corporation has also been one of the manufacturing leaders in creating new and innovative technologies that take advantage of the productions existing barriers. There are a lot of things…… [Read More]

References

Bryce, H.J. (2007). "Financial and Strategic Management for Nonprofit Organizations." Englewood Cliffs: Prentice-Hall,.

Campos, F. (2010). "As funding dries up, nonprofits must work harder.." Pacific Business News,, 34(8), 34-56.

Elliot, S. (2014). Toyota Motor Corporation. The New York Times, 34(9).

Herrold, C.Y. (2012). "How to Carve a Pie." Foundation News and Commentary,. Foundation News and Commentary, 41(4), 45-67.
View Full Essay

Ratio Analysis Ford

Words: 1898 Length: 5 Pages Document Type: Essay Paper #: 46224180

Ford Motor Company is headquartered in Detroit and operates globally. The company competes primarily in cars and light trucks. The company was founded in 1903 and today is one of the Big Three of U.S. automakers. The industry has globalized rapidly over the past few decades, and Ford now operates plants around the world. The company rose to prominence not only as an early automobile maker but the developer of the assembly line, and a leader in industrial production techniques. These allowed Ford to sell more cars than its competitors early, allowing it to establish itself as a market leader. The company today sells two main lines -- Ford and Lincoln (Ford.com, 2015). The industry is also in a state of flux with respect to technological change. Electric cars, and greater fuel efficiency are driving one segment of the market, while other segments still rely on light trucks and larger…… [Read More]

References

Ford.com (2015) Company History. Ford Motor Company. Retrieved April 8, 2015 from https://corporate.ford.com/company/history.html

Ford Form 10-K 2014. Retrieved April 8, 2015 from http://corporate.ford.com/content/dam/corporate/en/investors/reports-and-filings/Annual%20Reports/2014-ford-annual-report.pdf

MSN Moneycentral. (2015). Ford. MSN Moneycentral. Retrieved April 8, 2015 from http://www.msn.com/en-us/money/stockdetails?symbol=F&ocid=qbeb

GM 2013 Annual Report. Retrieved April 11, 2015 from http://www.gm.com/content/dam/gmcom/COMPANY/Investors/Stockholder_Information/PDFs/2013_GM_Annual_Report.pdf
View Full Essay

Financial'statements of XYZ Company

Words: 969 Length: 3 Pages Document Type: Essay Paper #: 78547685

Discuss at least 1-2 ratios that you believe are important to ascertain the financial position of the company. Do you believe this company has the means to pay its debt?

Financial ratio analysis makes it possible to examine the financial health of a company. The financial statements of a company provide limited understanding and knowledge into its performance. So as to attain a much stronger and richer insight of what takes place, there has to be a relevant basis of evaluation and appraisal. Various financial ratios are key to ascertaining the financial position of XYZ Company. One of these ratios are profitability ratios, which indicate the ability of a firm to convert its sales into profits. The return on assets of the company is 12.0%, return in equity 21.82% and gross margin 32.21%. This indicates that the company is profitable and therefore in a financially stable position. For instance, for…… [Read More]

View Full Essay

Financial Statement Analysis

Words: 613 Length: 2 Pages Document Type: Essay Paper #: 934932

liquidity, the key ratios are the current ratio and the acid-test ratio. These are measures of the firm's ability to meet its coming obligations, based on current asset (current ratio) and current assets less inventories. The current ratio stands at 1.79, down from 1.86 last year. These figures are both below the industry average, and are trending downwards, indicating that performance is sub-optimal. The acid-test ratio is 0.43, compared with 0.64 last year, again a downward trend. The 0.43 figure puts the company in the lowest quartile of the industry, so the acid-test ratio is a weakness and a point of significant concern. While it is a big hyperbolic to consider a current ratio of 1.79 as a weakness, we should be concerned about the downward trend, especially when couple with such a sharp dropoff in the acid-test ratio. Overall, there is reason to be concerned about the liquidity of…… [Read More]

View Full Essay

Small Business Owner Financial Ratios Understanding Concepts

Words: 1170 Length: 4 Pages Document Type: Essay Paper #: 20495400

Small Business Owner: Financial atios

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 decreasing debt, a large size entity would pay less attention to debt.

In the context of a small size company, some of the more relevant financial ratios to be assessed refer to the profitability ratios, the liquidity ratios, the debt ratios and the activity ratios. Each of these categories contains several important ratios, as follows:

Profitability ratios: the gross profit margin, the net profit margin, the return on equity

Liquidity ratios: current ratio, quick ratio or current ratio…… [Read More]

References:

Cooper, J., 2011, How to calculate financial ratios for your small business, Mimosa Planet,  http://mimosaplanet.com/Small-Business-Blog/bid/62950/How-to-Calculate-Financial-Ratios-for-Your-Small-Business.htmllast  accessed on August 21, 2012

2010, Financial ratios, Net MBA, http://www.netmba.com/finance/financial/ratios / last accessed on August 21, 2012

2012, Beta risk, Investopedia,   http://www.investopedia.com /terms/b/beta-risk.asp#axzz24AKreBy1  last accessed on August 21, 2012

Systematic and unsystematic risk, Nerimanhb, http://narimanhb.com/2010/08/18/systematic-unsystematic-risknon-diversifiable-and-diversifiable-risk/last accessed on August 21, 2012
View Full Essay

Arrow Company and Plume Inc Ratio Analysis

Words: 1028 Length: 3 Pages Document Type: Essay Paper #: 13882443

Arrow Company and Plume Inc. atio Analysis

Arrow Company and Plume Inc. Financial atio Computations

atio

Computation

Arrow Company

Computation

Plume Inc.

ate of eturn on Equity (OE)

$610,000/$2,189,200

$887,000/$2,682,000

eturn on Assets

$610,000/$3,855,700

$887,000/$4,477,500

Gross Margin

$1,720,000/$4,175,000

$2,117,000/$4,705,000

Inventory Turnover

$2,550,000/$435,000

$2,800,000/$595,000

The Collection Period

$380,000/($4,175,000/365)

$585,500/($4,705,000/365)

Fixed Asset Turnover

$4,175,000/1,695,000

$4,705,000/$2,512,000

Debt to Assets atio

$1,601,500/$3,855,700

$1,790,500/$4,477,500

Debt to Equity atio

$1,601,500/$2,189,200

$1,790,500/$2,682,000

Current atio

$2,105,700/$845,500

$1,940,500/$1,375,000

Acid Test

($2,105,700 - $435,000)/$845,500

($1,940,500 - $595,000)/$1,375,000

Analysis: Interpretation

From the ratios computed in Table 1 above, it may be possible to tell which company is in better financial health than the other. To begin with, we can use a number of ratios computed in the table above to measure the success of the two entities at profit generation. Looking at the companies' rate of return on equity, it is clear that shareholders of Plume Inc. earn much more than…… [Read More]

References

Albrecht, W.S., Stice, E.K. & Stice, J.D. (2010). Financial Accounting (11th ed.). Mason, OH: Cengage Learning.

Needles, B.E. & Powers, M. (2010). Financial Accounting (11th ed.). Mason, OH: Cengage Learning.

Rich, J.S., Jones, J.P., Heitger, D.L., Mowen, M.M. & Hansen, D.R. (2011). Cornerstones of Financial & Managerial Accounting (2nd ed.). Mason, OH: Cengage Learning.

Ryan, B. (2004). Finance and Accounting for Business. Bedford Row, London: Thomson Learning.
View Full Essay

Accounting Tootsie Ratio Analysis in

Words: 944 Length: 2 Pages Document Type: Essay Paper #: 63439349

46. So far the firm looks to be a good potential candidate for a loan.

3.

Solvency

The current and quick ratio looks at the short-term ability of a firm to meet its obligations. A lender will also want to look at the longer term position and the ability to repay the entire debt plus interest and fees (Libby et al., 2010). The solvency ratio assesses the level of cash generated in a year as a percentage of the debt. The cash generated is calculated by taking the net profit after tax and adding back the depreciation. The total liabilities are calculated by adding together the current and the long-term (non current) liabilities.

Table 3; Solvency ratio for Tootise oll Industries Inc.

2006

2007

Net profit after tax (a)

65,919

51,625

Depreciation (b)

15,816

15,859

Adjusted net profit (a + b) (c )

81,735

67,484

Current liabilities (d)

62,211

57,972…… [Read More]

References

Paper is based on a case supplied by the student

Howells P.G.A, Bain, K, (2007), Financial Institutions and Markets, London, Longman

Libby, R; Libby, P. Short D, (2010), Financial Accounting, McGraw-Hill
View Full Essay

A Company Ratio Analysis

Words: 693 Length: 2 Pages Document Type: Essay Paper #: 94734078

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…… [Read More]

View Full Essay

Financial Comparison Financial Analysis Is a Tool

Words: 1718 Length: 6 Pages Document Type: Essay Paper #: 41879325

Financial Comparison

Financial analysis is a tool that allows third parties to analyze corporate financial statements. One of the main reasons that the Securities and Exchange Commission requires that statements are compiled and presented in a consistent manner is to ensure that third parties will be able to use the statements to compare different companies. These comparisons can, among other things, help with investment decisions. This paper will compare PepsiCo and Coca-Cola Company, the two leading soft drink marketers in the world. PepsiCo is actually the larger of the two companies, because it is more diversified, with its snack food properties. These properties also alter the company's finances, creating certain points of difference between the two companies. This report will cover a number of different forms of financial analysis, arriving at a conclusion about which company has the stronger financial position.

PepsiCo

The first set of ratios to be studied…… [Read More]

Works Cited:

FTC. (2010). FTC puts conditions on PepsiCo's $7.8 acquisition of two largest bottlers and distributors. Federal Trade Commission. Retrieved May 19, 2012 from http://www.ftc.gov/opa/2010/02/pepsi.shtm

Leckey, A. (2010). Coca-Cola Co. outlook strong after big acquisition. Los Angeles Times. Retrieved May 19, 2012 from  http://articles.latimes.com/2010/oct/31/business/la-fi-leckey-20101031 

Loth, R. (2012). Financial ratio tutorial. Investopedia. Retrieved May 19, 2012 from   http://www.investopedia.com /university/ratios/ #axzz1vG92KPwm

MSN Moneycentral: PepsiCo. (2012). Retrieved May 19, 2012 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=PEP
View Full Essay

Financial Management Weaknesses of Ratio

Words: 676 Length: 2 Pages Document Type: Essay Paper #: 6584274

e. they ignore other key indicators and measures of financial performance. Other equally important measures and/or indicators of performance in this case include but they are not limited to employee morale, client service and satisfaction, quality of goods or products, etc.

Another key limitation of ratios is that they are only useful when it comes to the comparison of firms operating in the same industry. Utilizing ratios in the analysis of financial statements of companies in different industries could lead to a distortion of the information desired. This is more so the case given that entities in different industries are more often than not exposed to different regulations, market conditions, etc. In practice, finding two companies that are identical in every way is impossible.

atios could also be affected by changes in price levels. According to Lasher (2010), financial statements are often distorted by inflation. In the author's words, "during…… [Read More]

References

Lasher, W.R. (2010). Practical Financial Management (6th ed.). Mason, OH: Cengage Learning.

Siegel, J.G. & Shim, J.K. (2006). Accounting Handbook (4th ed.). New York: Barron's Educational Series, Inc.
View Full Essay

Financial Overview Business Description Wal-Mart

Words: 782 Length: 3 Pages Document Type: Essay Paper #: 54285727

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 (NOC)

$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 3.3)

Industry

2012

2011

Average

Asset Management ratios

Inventory Turnover

10.71

10.98

8.1

Days Sales Outstanding…… [Read More]

Works Cited:

MSN Moneycentral (2013) Wal-Mart. Retrieved March 8, 2013 from http://investing.money.msn.com/investments/stock-price?symbol=wmt

Wal-Mart 2012 Annual Report. Retrieved March 8, 2013 from http://www.walmartstores.com/sites/annual-report/2012/WalMart_AR.pdf
View Full Essay

Financial Health Hyundai Company Analysis Finance Is

Words: 1699 Length: 5 Pages Document Type: Essay Paper #: 25931410

Financial Health

Hyundai company analysis

Finance is a critical function in any business. It acts as an indicator for the health of a company, as well as determining its growth. When a company realizes new investment opportunities and other future aspirations, finance enables such ventures. Thus, finance reflects the performance of an organization (Gruen & Howarth, 2005). Measurement of performance takes place over a period of time. Organizations practically present their financial performance on a quarterly and yearly basis while others carry out a monthly exercise of tracking their performance. The government requires that all companies present an annual assessment of their performance. The information is featured in the form of financial transactions of sales, investments, savings and others. The information is part of a document called the Annul eport. Investors are informed by the annual report of companies before deciding on whether to invest in the company (Mclean, 2003).…… [Read More]

References

Cleverly, W.O., Cleverly, J., & Song, P. (2011). Essentials of health care finance. Sudbury:

Jones & Bartlett Learning.

Gruen, R., & Howarth, A. (2005). Financial management in health services. New York: Open

Mclean, R. (2003). Financial management in health care organizations. Clifton Park: Delmar
View Full Essay

Financial Analysis of Lehman Brother

Words: 2992 Length: 10 Pages Document Type: Essay Paper #: 52231514

Financial Analysis of Lehman rother

Lehman rothers

The history has been full of financial collapses and financial scandals and one of the biggest financial collapses that a company has ever seen was that of Lehman brother. The collapse of a firm as huge as Lehman rother and a firm which has such great experience of over a hundred years lead the world into a shock. It created doubts in the minds of people regarding the condition of other financial institutions. The history of Lehman rother is rich which is further discussed.

The history of Lehman rother dates back to 1844, when a boy named Henry who was a 23-year-old son of a cattle merchant who immigrated to the United States from Germany and he settled in Alabama State of the United States where he opened dry goods store. In 1847, when Henry Lehman's elder brother arrived to Alabama, the firm…… [Read More]

Bibliography

1. Bebchuk, L.A., Cohen, A., & Spamann, H. (2010). The Wages of Failure: Executive Compensation at Bear Stearns and Lehman 2000-2008. Yale Journal on Regulation,27(2), 257+.

2. Blake, D. (2000). Financial Market Analysis. New York: Wiley. Cetorelli, N., Mandel, B.H., & Mollineaux, L. (2012). The Evolution of Banks and Financial Intermediation: Framing the Analysis. Federal Reserve Bank of New York Economic Policy Review, 1+.

3. Dwyer, G.P., & Tkac, P. (2009). The Financial Crisis of 2008 in Fixed Income Markets.Federal Reserve Bank of Atlanta, Working Paper Series, 2009(20), 1+.

4. Fitzpatrick, T.J., & Thomson, J.B. (2011). How Well Does Bankruptcy Work When Large Financial Firms Fail? Some Lessons from Lehman Brothers. Economic Commentary (Cleveland), (2011-23), 1+.
View Full Essay

Financial Accounting Company Overview Microsoft

Words: 689 Length: 3 Pages Document Type: Essay Paper #: 27022022

he only observation that could be made here is that one would expect a larger proportion of the total expenses to be allocated to research and development, given the fact that this is such an important part of Microsoft's activity and essential in order to obtain a competitive advantage on the market.

Asset and Capital Structure

2008

Cash and cash equivalents

$10,339

Accounts receivable

$13,589

Inventories

$985

otal fixed assets

$29,551

he asset structure at Microsoft reflects some of the particularities in the industry, notably the fact that the inventory levels tend to be quite low, as compared to the other assets. his means that the I industry is not one supporting production on stock. At the same time, the value of the total fixed assets is significantly high, which can be partly explained by the size of the company and the investments in land, buildings and equipment.

Part III…… [Read More]

The return on assets at Microsoft was 0.24 in 2008, as compared to 0.22 in 2007. As most of the other profitability and asset management figures, the return on assets also shows a better performance in 2008.

Part IV -- Conclusions and Recommendations

Microsoft's results, both in terms of absolute value from the income and cash flow statements and balance sheet and the ratio analysis, show a solid, extremely competitive company, whose results have improved from 2007 to 2008, despite the global economic crisis. Its capacity to retain low levels of inventory, to gradually increase its efficiency in using assets and to bring new products to the market are some of the positive aspects at Microsoft. As a recommendation, the company could consider allocating a larger proportion of its expenses into research and development.
View Full Essay

Financial Research Report on Wyeth

Words: 1451 Length: 5 Pages Document Type: Essay Paper #: 95349124

The projected growth rates are of 7% for 2009, 7% for 2010, 8% for 2011 and 9% for 2012 (Hoovers). Wyeth is expected to increase at higher rates due to its being taken over by Pfizer.

3. Stock Price Analysis

The Wyeth stock is being currently (September 16th, 2009) traded at $47.70, revealing a 0.23 (0.48%) decrease relative to the previous trading session, which closed at $47.93. The day's high value so far is of $47.94, with a low of $47.64. The highest value for the past twelve months is of $48.30, with the lowest of $28.06 (Wyeth Pharmaceuticals Company Website). Compared then to the evolution of the past year, it is obvious that the price of the Wyeth stock option increased. The highest price in its trading history was of $69.75 and it was achieved on the 12th of April 1999. The lowest price was registered on the 17th…… [Read More]

References:

2009, Wyeth Pharmaceuticals, Inc., Hoovers, http://www.hoovers.com/wyeth-pharmaceuticals/--ID__104566 -- /free-co-factsheet.xhtml last accessed on September 16, 2009

2009, Wyeth, Reuters, http://www.reuters.com/finance/stocks/ratios?symbol=WYE.N last accessed on September 16, 2009

2009, Wyeth, Forbes, http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=WYE last accessed on September 16, 2009

2009, WYE, Deep Market, http://www.deepmarket.com/stock/wye last accessed on September 16, 2009
View Full Essay

Financial Analysis Performance Task

Words: 1124 Length: 4 Pages Document Type: Essay Paper #: 55129214

Financial Analysis

Reitmans

Alimentation Couche-Tard

Sales

COGS

Gross Profit

Depreciation + Exp

Operating Profit

Investment Income

Interest

EBIT

Tax Exp

Net Income

Cash

AR

Inventory

Prepaid Exp

Current Assets

Investments

Capital Assets

Goodwill

Future Income Tax

LTA

Total Assets

Taxes payable

Current LT Debt

Current Liabilities

LT Debt

Other LT Liabilities

Total Liabilities

Equity

L + E

Reitmans was able to improve its profitability in 2005, compared with 2004. The company's gross profit improved to 13.55% from 9.99%; its operating profit improved to 9.7% from 5.98%; and its net profit improved to 7.33% from 4.7%. This shows that the improvement in the company's profitability is largely attributable to the improvement in the top line, with the cost of goods sold being a lower percentage of revenues in 2005 than 2004. hether this is a function of driving down costs with suppliers or increasing prices to consumers cannot be ascertained from…… [Read More]

Works Cited:

Reitmans 2005 Annual Report. In possession of the author.
View Full Essay

Financial Analysts Play a Number of Roles

Words: 600 Length: 2 Pages Document Type: Essay Paper #: 38077962

Financial analysts play a number of roles within an organization. They made assessments of the value of investments the firm has or may have in the future. They can specialize in determining the value of projects. In addition, financial analysts are engaged in risk assessment, and take steps to determining the best ways for the firm to mitigate the risks that have been identified. Overall, financial analysts use a multitude of different knowledge sets including taxes, finance, economics and risk management to assist the company in making the best financial decisions for the firm (BLS, 2010).

a )The net profit would be the gross profit less operating expenses, interest expenses and tax expenses. Thus, the net profit is: $1,000,000 - $345,000 - $125,000 = $530,000. From this the taxes are removed: $530,000 * (1-.3) = $371,000. The preferred stock dividends of $57,000 must then be removed in order to determine…… [Read More]

Works Cited

BLS. (2010). Occupational Outlook Handbook 2010-11 Edition. Bureau of Labor Statistics. Retrieved May 21, 2011 from http://www.bls.gov/oco/ocos301.htm

Loth, R. (2011). Financial ratios tutorial. Investopedia. Retrieved May 21, 2011 from   http://www.investopedia.com /university/ratios/
View Full Essay

Financial Analysis the Company I

Words: 2865 Length: 10 Pages Document Type: Essay Paper #: 9701212



Overall, at&T is the more profitable of the two companies. That Verizon has the stronger gross margins and at&T the stronger net margins indicates that at&T does a better job of controlling its cost structure than does Verizon.

The Industry

The telecommunications industry is highly competitive in both the landline and wireless segments. By 2006, wireless spending had match wireline spending. hile this presents significant opportunities for telecommunications, much of that spending comes in the form of cannibalizing, as wireline revenues have been decreasing steady over the past decade, matching the steady increases in wireless spending.

There are four major wireless operators in the U.S. And over 170 regional players (Megna, 2009). Competition is based on coverage area (capital investment), price and customer service. Both firms can be considered industry leaders. As of 2007, at&T had a subscriber base of 65.7 million and wireless revenues of $10.9 billion. Verizon had…… [Read More]

Works Cited:

MSN Moneycentral Verizon. Retrieved October 24, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=VZ&lstStatement=Balance&stmtView=Ann

MSN Moneycentral at&T. Retrieved October 24, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=T&lstStatement=Balance&stmtView=Ann

Loth, R. (2009). Financial Ratios Tutorial. Investopedia. Retrieved October 24, 2009 from   http://www.investopedia.com /university/ratios/ 

Chen, B. (2009). Verizon iPhone? Don't hold your breath. Wired. Retrieved October 24, 2009 from http://www.wired.com/gadgetlab/2009/10/verizon-iPhone/
View Full Essay

Financial Analysis of Bestwish Limited Company Overview

Words: 4573 Length: 13 Pages Document Type: Essay Paper #: 99500463

Financial Analysis of Bestwish Limited

Company Overview

Bestwish Limited produces extensive range of quality products such as gift dressing, greetings cards, and plush merchandise of more than 50,000 stocks. The production of different categories of products involve between 2 and 15 processes. The company produces standardized products and custom designed products ordered from customers on contract basis. However, Bestwish Limited is facing challenges to control the costs because of varying production process, reliance on indirect costs and large number of stock keeping units.

Bestwish Limited has just closed the 2010 fiscal year account and the company is finalizing the 2011 budget. Bestwish intends to analyze the 2010 financial statement to present the accurate picture of the company financial performances.

Objective of this report is to analyze 2010 financial statements to assess the viability of Bestwish Limited.

Task

Attn:

Audit Committee of the Board

Finance Director

Subject: Financial statement Analysis

Date:…… [Read More]

References

Drury, C. (2009). Management Accounting for Business, 4th Edition (Cengage Learning EMEA, ) ISBN 1408017717.

Harris, R. And Sollis, R. (2003).Applied Time Series Modelling and Forecasting (John Wiley and Sons) ISBN 0470844434

Glynn, J. Perrin, J. Murphy, M. And Abraham, A. (2003).Accounting for Managers, 3rd Edition.(Thomson Learning) ISBN 186152904X

The Times 100, (2012). Financial statements and reporting A Cadbury Schweppes case study. The Times 100 Business Case Studies.
View Full Essay

Financial Project FedEx NYSE FDX

Words: 2204 Length: 8 Pages Document Type: Essay Paper #: 60966058

The horizontal analysis showed that FedEx's profits in 2009 were just 5% of their profits in 2007. Given that EBIT contributes to the T3 component of the Z-score, which is the most significant component by weighting, this would explain why the Z-score dropped so much. The other major contributor to the Z-score is the drop in the company's market cap. The market cap is deemed important in part because the market's view of company reflects the most known information at the time. The market has a strong ability to predict financial distress. A depressed stock price indicates that investors need a greater percentage return on the expected future cash flows from the company in order to invest -- an indicator that the market believes the firm's risk level has increased. The market cap contributes to the T4 component, which is the smallest component of the Z-score. However, the decline in…… [Read More]

Works Cited:

2009 FedEx Annual Report. Retrieved February 4, 2010 from http://files.shareholder.com/downloads/FDX/791567587x0x312397/557bd7f3-8372-4afe-a664-1fdb82a488b0/FedEx2009AnnualReportl.pdf

Loth, R. (2010). Financial ratio tutorial. Investopedia. Retrieved February 4, 2010 from   http://www.investopedia.com /university/ratios/ 

Market cap and other financial information from MSN Moneycentral. Retrieved February 4, 2010 from http://moneycentral.msn.com/companyreport?Symbol=U.S.%3aFDX

Altman Z-Score calculator from CreditGuru.com. Retrieved February 4, 2010 from http://www.creditguru.com/cgi-bin/calculator/calcAltZ.pl
View Full Essay

Financial Analysis This Report Will

Words: 2275 Length: 8 Pages Document Type: Essay Paper #: 93675121

5 times the actual value of equity.

The return on investment is calculated by dividing the total net profits by the total assets value and shows the "overall effectiveness to generate profits from total investment in assets." At the Colorado Group, the return on investment amounted to 20.4% in 2006 and 21.5% in 2005. The small decrease from 2005 to 2006 can be explained by the fact that that the net profits decreased significantly during this period of time and that the decrease of the total assets value was by no means similar in value.

The gross profit margin is calculated by dividing the net sales minus the cost of goods sold by the net sales value and shows the "profitability of a company's sales after the cost of sales has been deducted." In this case, in 2006 this ratio was equal to 54.4%, as compared to 55.9% in 2005.…… [Read More]

Bibliography

1. Financial Ratios. Cardinal Stritch University Library. On the Internet at http://library.stritch.edu/guides/financialratio.htm

2. The company's 2006 Annual Report

Financial Ratios. Cardinal Stritch University Library. On the Internet at http://library.stritch.edu/guides/financialratio.htm

Page 2 - chairman's report
View Full Essay

Financial Research There Are Any

Words: 1988 Length: 7 Pages Document Type: Essay Paper #: 72069427



Another point of difficulty is that different firms may use different calendars when reporting. For example, the fiscal year at FedEx ends at the end of May, while at UPS the fiscal years ends at the end of December. This makes for a difficult comparison. For example, fuel prices escalated rapidly in early 2008. Comparing a FedEx FY09 and UPS FY08 would be very difficult, given that one of those statements would reflect the fuel price increase and the other would not.

There are also limitations to accounting analysis as a whole. At best, these forms of analysis are only as good as the financial statements from which they are produced. A large number of variables contribute to those statements, including accounting policy, accounting accuracy (or lack thereof), outdated information and changes in the accounting standards (NetTom, n.d.)

Changes in accounting policy or accounting standards can distort data year-over-year, which…… [Read More]

Works Cited:

MSN Moneycentral: FedEx Corporation. (2009). Retrieved November 3, 2009 from http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=FDX

MSN Moneycentral: Thomson Reuters. (2009). Retrieved November 3, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=TRI

Loth, R. (n.d.). Financial ratio tutorial. Investopedia. Retrieved November 3, 2009 from   http://www.investopedia.com /university/ratios/ profitability-indicator/default.asp

No author. (2007). Common Size Financial Statements. NetMBA. Retrieved November 3, 2009 from  http://www.netmba.com/finance/statements/common-size/
View Full Essay

Financial Research Report This Is a Review

Words: 1620 Length: 6 Pages Document Type: Essay Paper #: 32469715

Financial esearch eport

This is a review of Caterpillar, Inc.. The report is broken down into three sections -- company overview, ratio analysis (which includes a trend analysis), stock price analysis -- that are designed to give a thorough overview of the complete company.

Company Overview

Caterpillar is one of the best known name brands, around the world for its manufacture of heavy machinery made, primarily, for the construction industry. The company began operations in 1925 under the name Caterpillar after a merger was formed between Holt Manufacturing and C.L. Best Tractor (USSEC, 2011). The company has set the standard in its industry becoming the largest manufacturer of hauling machines in the world.

Caterpillar operates primarily as a manufacturer of heavy equipment, but, with the realization that they needed to be able to finance purchases of their products and help maintain them, the company has also diverged into financial services…… [Read More]

References

Caterpillar. (2011a). About us. Retrieved from http://www.caterpillar.com/company/strategy

Caterpillar. (2011b). Stock chart. Retrieved from http://www.caterpillar.com/investors/stock-information/stock-quote/stock-chart

Caterpillar. (2009). Sales and Revenue. Retrieved from http://producttour.cat.com/Microsites/U.S./ARSR2009/AR2009/sales-profit.html

USSEC. (2011). Caterpillar for 10K. United States Securities and Exchange Comission.
View Full Essay

Financial Research Report Company Overview

Words: 1603 Length: 5 Pages Document Type: Essay Paper #: 19529964

The price is at its level of five years ago, when the external environment was much more favorable for Starbucks. The price of arabica has increased significantly and while Starbucks is a major buyer, it is not the largest buyer and does not have significant pricing power. The competitive pressure that has been applied by McDonald's, Dunkin Donuts and a host of imitators has not eased. Given this, margins can be expected to remain at current levels. While the company can still achieve more improvements with respect to its internal metrics, those are unlikely to drive the stock much beyond its current level. The key driver for Starbucks' stock in the coming years is going to be more dependent on foreign market growth than any other single factor. Foreign market indicators are not a cause for intense optimism. Dubai's default calls into question the long-term growth potential of the Middle…… [Read More]

References:

MSN Moneycentral: Starbucks. (2010). Retrieved June 6, 2010 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=SBUX

Monga Bay.com: Coffee, Arabica price chart (2010). Retrieved June 6, 2010 from http://www.mongabay.com/images/commodities/charts/chart-coffee_arabica.html

Starbucks 2009 Annual Report. Retrieved June 6, 2010 from http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjczNTB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

Sanchanta, M. (2010). Starbucks plans major China expansion. Wall Street Journal. Retrieved June 6, 2010 from http://online.wsj.com/article/SB10001424052702304604204575181490891231672.html
View Full Essay

Financial Analysis and Management at

Words: 3019 Length: 10 Pages Document Type: Essay Paper #: 29318125

Had the organization employed the techniques of activity-based costing, they would have realized the need to change their approach and had started manufacturing small size and fuel efficient engines, as most of the customers were requiring these items. "If Ford [...] had used activity-based costing, they would have realized early on the utter futility of their competitive blitzes of the past few years, which offered new-car buyers spectacular discounts and hefty rewards" (Drucker, 2003).

Unlike absorption costing, marginal costing uses the traditional division into direct, indirect, fixed and variable costs. The accounting method sees that the final marginal cost of a product will be calculated by summing up the direct costs of labor, the direct costs of materials, the direct expenses and the variable overheads (Brown). The applications of marginal costing revealed that Ford was able to support a price advantage relative to General Motors and Chrysler due to its…… [Read More]

References

Bernstein, L.A., Wild, J.J., 1999, Analysis of Financial Statements, 5th Edition, McGraw-Hill Publishers, ISBN 0070945047

Berry, a., 1999, Financial Accounting: An Introduction, 2nd Edition, Cengage Learning EMEA, ISBN 186152479X

Brown, G., Introduction to Costs Accounting: Methods and Techniques, http://www.globusz.com/ebooks/Costinglastaccessed on March 9, 2009

Drucker, P.F., 2003, Peter Drucker on the Profession of Management, Harvard Business Press, ISBN 1591393221
View Full Essay

Financial Management Ratios Risk and Diversification Financial

Words: 739 Length: 2 Pages Document Type: Essay Paper #: 32894776

Financial Management: atios, isk and Diversification

Financial atios elevant to Small Businesses and Large Corporations

In an attempt to determine the performance of his or her business, a small business owner can utilize ratios such as the current ratio and the profit margin ratio. The profit margin in the words of Needles and Powers (2010) "shows the percentage of each sales dollar that results in net income." For a small business owner, this ratio would be an appropriate measure of the profitability of his or her business. The current ratio as Stickney et al. (2009) point out helps in the measurement of a firm's ability to settle its short-term debts/obligations. A small business owner interested in determining the ability of the business to settle its everyday bills and other obligations would find this ratio useful. On the other hand, a manager of a large corporation would be interested in ratios…… [Read More]

References

Graham, J. & Smart, S.B. (2011). Introduction to Corporate Finance (3rd ed.). Mason, OH: Cengage Learning.

Needles, B.E. & Powers, M. (2010). Financial Accounting (11th ed.). Mason, OH: Cengage Learning.

Stickney, C.P., Weil, R.L., Schipper, K. & Francis, J. (2009). Financial Accounting: An Introduction to Concepts, Methods, and Uses (13th ed.). Mason, OH: Cengage Learning.

Shim, J.K. & Siegel, J.G. (2008). Financial Management (3rd ed.). Hauppauge, New York: Barron's Educational Series.
View Full Essay

Ratios in General East Coast Yachts Has

Words: 709 Length: 2 Pages Document Type: Essay Paper #: 1212964

atios

In general East Coast Yachts has below average financial performance compared to its industry peers. With respect to solvency and liquidity, the company has a current ratio of 1.12 and a quick ratio of 0.66. Both of these lie below the median for the industry but are comfortably above the lower quartile. The debt ratio is 35.8% and the debt/equity ratio is 91.9%. These figures are also in the second quartile for the industry, with the debt ratio just above the cutoff for the lower quartile. Interest coverage is 7.95 times, again putting the company between the median and the lower quartile.

In terms of efficiency, total asset turnover is 1.51 times, inventory turnover is 19.2 times and receivables turnover is 30.6. The latter is in the upper quartile, indicating that the company has a good collections system. Total asset turnover is just above the lowest quartile while the…… [Read More]

References

Loth, R. (2012). Financial ratio tutorial. Investopedia. Retrieved February 12, 2012 from  http://www.investopedia.com /university/ratios

Malkiel, B. (2003). The efficient market hypothesis and its critics. CEPS Working Paper No. 91. Retrieved February 12, 2012 from  http://www.vixek.com/Efficient%20Market%20Hypothesis%20and%20its%20Critics%20-%20Malkiel.pdf
View Full Essay

Financial'statement analysis of Verizon

Words: 889 Length: 3 Pages Document Type: Essay Paper #: 37454239

Organizational Context

Verizon is a national telecommunications company, headquartered in New York City. The company was formed from the breakup of Bell and subsequent mergers and acquisitions. The company has divisions for media, network and technology and customer/product operations. The latter is by far the largest component of the company, encompassing Verizon Wireless, and a number of companies aimed at the enterprise market. Verizon competes against AT&T and Sprint, both of which are large companies in their own right, with similar businesses, in particular in wireless and telecommunications. These divisions reflect an organizational structure that is focused on product. The wireless business is nationwide, but the landline-oriented businesses are focused mainly in the northeast, which is the traditional geography for Verizon's predecessor business Bell Atlantic.

Recent Financial Performance

Verizon's business has fluctuated over the past three years. In FY 2016, it recorded $125 billion in revenue, down from $131 billion…… [Read More]

View Full Essay

Financial Analysis Mcdonald's Like Many

Words: 2973 Length: 7 Pages Document Type: Essay Paper #: 87490352



Conduct a benchmarking analysis

As explained by Prasnikar, Debeljak and Ahcan (2005) benchmarking depends on comparing between two activities of an organization and another. In our case, we shall compare McDonald's activities and those of its competitors, Burger King and Wendy's.

• Best practices

McDonald's as a main player in the fast food industry is concerned with best practices with the industry. To this end, the corporation has adopted some best practices that include sustainability, nutrition and well-being, employee experience ad environmental responsibility. Accordingly, McDonald's protects the environment by going green and using methods that protect and conserve the environment. McDonald's also encourages its suppliers to uphold effective environmental. The company treats it employees well and offers them good working conditions as a way retaining them. Employees are offered training and promoted accordingly. McDonald's also adheres to ethical conduct its operations and food items are produced ethical. Similarly, the company…… [Read More]

View Full Essay

Ratio Analysis Etc On Apple Inc

Words: 1666 Length: 4 Pages Document Type: Essay Paper #: 54026532

Apple: atio and SWOT Analysis

Financial Trend Comparison

atio Category: Liquidity atios

In basic terms, liquidity ratios demonstrate a company's ability to settle its obligations (short-term) if and when they fall due. To begin with, from the computations, it is clear that Apple's current ratio has consistently been less than the industry average. Hence for short-term creditors, this could be an issue of concern as the trend increases their risk. Further, a look at the company's cash ratio shows that the firm could have difficulties settling its current obligations if payment for the same was demanded immediately. Generally, most (if not all) the company's relevant liquidity ratios fall below the industry average. Hence going forward, the company could find it hard accessing short-term-credit from creditors.

atio Category: Asset atios

Asset turnover ratios are basically used as pointers of a company's level of efficiency when it comes to asset utilization. Apple's…… [Read More]

References

Apple (2010). Business Conduct: The Way We Do Business Worldwide. Retrieved November 10, 2011, from:

http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9NTQ1NTF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

Morris, M.H., Kuratko, D.F. & Covin, J.G. (2010). Corporate Entrepreneurship & Innovation. Cengage Learning.

Yahoo Finance (2011). Competitors: Direct Competitor Comparison. Retrieved November 10, 2011, from Yahoo Finance website:  http://finance.yahoo.com/q/co?s=AAPL+Competitors
View Full Essay

Financial Analysis Both General Motors

Words: 1582 Length: 6 Pages Document Type: Essay Paper #: 65405024

Ford's value in 2007, was 0.01, compared to GM's value of 0.64. Comparatively, GM is using its assets in a much more efficient manner than Ford is.

V. Conclusions

oth General Motors and Ford have shown specific problems in their operational activity, as this is reflected in the financial ratios that have been analyzed. The most important problem that Ford seems to have was reflected by both the asset management and profitability ratios. Indeed, from our investigation, we were able to determine that not only Ford is not using the assets it has efficiently in order to generate higher revenues and sales for the company, but the values in 2007 were almost error-like small (0.01 in most cases).

At the same time, General Motor's asset management and profitability ratio values were somewhat higher and, generally, showed an ascending trend, but I don't think we can go as far as saying…… [Read More]

Both General Motors and Ford have shown specific problems in their operational activity, as this is reflected in the financial ratios that have been analyzed. The most important problem that Ford seems to have was reflected by both the asset management and profitability ratios. Indeed, from our investigation, we were able to determine that not only Ford is not using the assets it has efficiently in order to generate higher revenues and sales for the company, but the values in 2007 were almost error-like small (0.01 in most cases).

At the same time, General Motor's asset management and profitability ratio values were somewhat higher and, generally, showed an ascending trend, but I don't think we can go as far as saying that General Motor is doing a good job in this area, simply because it is only a comparative approach and the fact that it is outperforming Ford does not necessarily mean that, on an absolute scale, it is actually managing its assets efficiently. Additionally, the values usually are much smaller than 1 and generally to small to draw a positive conclusion from this.

One of the significant problems that General Motors seem to have, and this was reflect both in the liquidity ratios and in some of the asset management ratios, is the very high levels of inventory. This shows a complex set of problems at General Motors. First of all, it production is not being efficiently sold and it is being stocked up rather than launched on the market. Such a policy shows either that there is no interest on the market for General Motors products or that the policy is wrong. In both cases, high levels of inventory lead to additional costs and to the risk that the company will not be able to sell these products at the current price levels.
View Full Essay

Financial Analysis Oracle Sells Software for Database-Management

Words: 1522 Length: 5 Pages Document Type: Essay Paper #: 91140530

Financial Analysis

Oracle sells software for database-management and network products, application-development productivity tools, and end-user applications. Its principal product, the Oracle relational database-management system, runs on supercomputers, mainframes, minicomputers, microcomputers, and personal computers. The firm also offers consulting and systems-integration services. Foreign sales make up about 50% of revenue.

Oracle sees the wisdom in managing business data. Oracle also offers business applications for data warehousing, customer relationship management, and supply chain management. The company made an unsolicited bid to acquire PeopleSoft for about $5.1 billion in June 2003. y early 2004 the offer had increased to $9.4 billion, but was later reduced to $7.7 billion to reflect market conditions. The Department of Justice filed antitrust lawsuits in seven states to block the deal, and started hearings on June 7. Peoplesoft's lawsuit against Oracle is scheduled to go to court November 1 in Alameda, California.

Long-Term Debt Ratio (Long-Term Liabilities/Total Assets)…… [Read More]

Bibliography

1. http://www.hoovers.com/oracle/--ID__14337 -- /free-co-fin-annual.xhtml http://www.chromesplash.com/jcallinan.com/oracle/financial_ratios.htm

 http://www.valuebasedmanagement.net/methods_roe.html 

4. Van Horn, J Financial Management and Policy, 11th ed., Prentice Hall, New Jersey, 1998

See on the Internet at
View Full Essay

Financial Analysis of Nike

Words: 1251 Length: 5 Pages Document Type: Essay Paper #: 22148562

Financial Analysis of Nike

Nike Corporation (NKE: NYSE) is a global leader in the research and development, design and global marketing of a series of apparel, accessory, equipment and footwear products. The company is globally recognized for its excellence in marketing with the Nike brand being considered one of the top ten globally every year in consumer surveys where unaided awareness is the basis of analysis (Kwon, Kim, Mondello, 2008). Nike has one of the most extensive supply chains of any global apparel manufacturer, with a series of supplier quality audits and compliance standards including Corporate Social esponsibility (CS) initiatives and programs are enforced across the thousands of companies it sources from (Doorey, 2011). Today Nike operates in 170 different nations, dividing their overall operations into six divisions including China, Central and Eastern Europe, North America, Western Europe and Emerging Markets. Nike has over two dozen product lines it sells…… [Read More]

References

Doorey, D.. (2011). The Transparent Supply Chain: from Resistance to Implementation at Nike and Levi-Strauss. Journal of Business Ethics, 103(4), 587-603.

Kwon, H., Kim, H., & Mondello, M.. (2008). Does a Manufacturer Matter in Co-branding? The Influence of a Manufacturer Brand on Sport Team Licensed Apparel. Sport Marketing Quarterly, 17(3), 163-172.

Nike Investor Relations (2011). Investor Relations. Retrieved December 13, 2011, from Nike Investor Relations and Filings with the SEC Web site: http://investors.nikeinc.com/

Venkat Ramaswamy. (2008). Co-creating value through customers' experiences: the Nike case. Strategy & Leadership, 36(5), 9-14.
View Full Essay

Financial Statement and Ratio Analysis

Words: 890 Length: 2 Pages Document Type: Essay Paper #: 37151416

Borers Group

Day's Sales in Inventory

Inventory Turnover

Working Capital

Current Ratio

Cash Ratio

Sales/WC

OCF/current maturities

Borers Group

Debt Ratio

OCF/Total Debt

Borers Group

Net Margin

ROA

ROE

Gross Margin

ROA an ROE are n/a because there were no returns, as the company recore a net loss for the year.

Borers Group

EPS

OCF/Cash Diviens

The results above illustrate that Borers has not ha a goo couple of years. The company is losing money, an this is reflecte in the loss per share, an the lack of returns on assets an equity. The gross margin seems aequate to eliver profit, but it has ecrease in the past year. The net margin, however, has been negative in both years, because the company has poste losses Borers has a lot of ebt, with a high ebt ratio, an low operating cash flow to ebt ratio. While its immeiately liquiity is not…… [Read More]

d. The decrease in inventories has been one of the means by which management has adapted to the declining revenue. It was significant in ensuring that the company had positive cash flow from operations in 2010, but its influence was arguably less than in 2009, when it was the most critical factor. Borders might be at the point of diminishing returns when it comes to using inventory liquidation as a means of delivering positive operating cash flow.

e. There is no question here. Rock on.

f. It's an audit report. They have a standardized format, and this report fits that format. Despite the date, the report can be taken entirely seriously -- E&Y really did audit this company's statements and they actually mean it when they say that they found the statements to accurately reflect the company's financial condition.
View Full Essay

Financial Management Analysis on the Pfizer Company

Words: 2007 Length: 7 Pages Document Type: Essay Paper #: 32410334

Pfizer can be included in the larger industrial sector of biotechnology and pharmaceuticals, although a great part of its revenues come from the pharmaceutical products for which it is renowned. The pharmaceutical companies have specialized in a vast category of drugs, from simple, aspirin- type drugs, to more complex ones, including drugs that inhibit or activate individual molecules in different selected environments. They also produce vitamins and livestock food supplements.

The pharmaceutical industry in the United States (and worldwide for that matter) is considered to be one of the most profitable and continuously booming. It is estimated that globally, over $300 billion worth of drugs are sold. A simple explanation for this high degree of profitability is, of course, the high demand of the sector: no matter what happens, drugs and medicine continue to be one of the necessities of people. Additionally, this demand seems to be on a constant…… [Read More]

Merck's profit margin was 13.6%, while Pfizer scored 34.8%, almost three times as much! This means either that Pfizer is selling at higher prices than Merck (it may be the case that Pfizer provides more specialized drugs that sell at a higher price) or that Pfizer has lower costs (I doubt that this is the main cause here. In general, the main costs in the pharmaceutical industry come from research and developed. As is the case here, it is very probable that these two companies are spending more or less the same amount on R& D. In order to remain competitive).

The return on total assets ratio, obtained by dividing the net income after tax to the total asset value, showed a score of 1.9% in Pfizer's case and of 14.8% in Merck's case, while the ROE (return on equity) amounted for 40.37% in Merck's case and 3.57% on Pfizer's case. The differences, as we can see, are extremely high. I could explain the first indicator, the ROI, with the very high value of total assets for Pfizer in 2003 (this almost doubled from 2002), which made the company less profitable that year, but the difference in ROE is enormous. It does not necessarily reflect a low profit in Pfizer's case (this seems comparable), but a very high value of equity. However, the analysis is even more complicated when we look at the P/E ratio, where the differences are staggering: Pfizer has a reported P/E of 136.92, while Merck has one of only 16.75, with the industrial average somewhere at 28.72. The closest to Pfizer in this case is Bayer, with 96.01.

The conclusions that we can draw from this analysis are somewhat ambiguous. We have had a look at several financial indicators and in many of them, Pfizer has scored lower scores than its competitor Merck. This is mainly the case of the asset management ratio and the profitability ratio. However, one of the most important indicators, the P/E, that shows us the perspective of a company, showed extremely high values for Pfizer, compared to all other companies and to the industrial average. Seeing that many indicators were influenced by the unstable value of the total assets, due to current acquisitions and mergers, investing in Pfizer may be advisable given the fact that a long-term growth is expected in the industry, as well as for the company (see again the P/E).
View Full Essay

Financial Analysis Rationale for Choosing the Company

Words: 1641 Length: 5 Pages Document Type: Essay Paper #: 59157551

Financial Analysis

ationale for choosing the company for which to invest

The company selected for this financial research report is Intel Corporation. The rationale for selecting this company is because Intel is considered to be one of the major pioneers and forerunners in the field of technology. Intel Corporation dominates about 80% of the market share that is made up of microprocessors.

atio analysis

It is imperative to note that the financial statement of a company alone offers limited understanding and insight into the performance of the company itself. So as to attain a much profound and richer comprehension of what is going on within a company, there has to be a relevant basis of comparison. Comparison can include making an analysis of financial ratios of the company as well as the industry benchmarks it offers the stakeholders, with tools to detect any strength and weaknesses of the company. This…… [Read More]

References

Annual Report (2012) Intel 2012 Annual Report, Retrieved from the web at http://www.intc.com/intelAR2012/business/competition/

Annual Report (2013) Intel 2013 Annual Report, Retrieved from the web at http://www.intc.com/intelAR2013/business/competition/

Annual Report (2014) Intel 2014 Annual Report, Retrieved from the web at http://www.intc.com/intelAR2014/business/competition/

Intel PR. (2015). Intel to Acquire Lantiq; Advancing the Connected Home. Intel Newsroom. Retrieved from: http://newsroom.intel.com/community/intel_newsroom/blog/2015/02/02/intel-to-acquire-lantiq-advancing-the-connected-home
View Full Essay

Financial Analysis Suppose You Are Comparing Two

Words: 572 Length: 2 Pages Document Type: Essay Paper #: 22382951

Financial Analysis

Suppose you are comparing two firms within an industry. One is large and the other is small. Will relative or absolute numbers be of more value in each case? What kinds of statistics can help evaluate relative size?

Gibson, Charles H. (2012-05-10). Financial Reporting and Analysis (Page 217). Cengage Textbook. Kindle Edition.

When comparing two firms that are unequal in size, the relative financial ratios are more appropriate for any type of comparison. The advantage of using ratios is that they represent a metric that can be easily compared with industry standards or other specific companies of different sizes. The financial statement represents a snap shot of a company's performance over a given time period and the financial information that these reports provide can allow the analysis of a wide range of different ratios. These ratios can provide insights to factors such as the company's ability to repay…… [Read More]