...Using the Current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). The current ratio is the result of Current Assets divided by Current Liabilities. Bankers and analysts use this ratio to understand a company's ability to pay short-term obligations, its liquidity. A company is generally judged "liquid" if its current ratio is 2-to-1 (though there are differences by industry). Example: Current Ratio=Current Assets Current Liabilities Liquid Measurement Ratio | Coca-Cola’s Current Ratio | 1.13 | Liquid Measurement Ratio | PepsiCo’s Current Ratio | 6.40 | This 2-to-1 ratio is a fairly conservative number and may not reflect the particular industry being examined where the ratio may be closer to 1.5 to1. Just using the 2 to 1 relationship, a banker would say that this company is a safe bet. What the banker is saying to himself or herself is that at least 50% of the current assets can be converted into cash reasonably fast. Since PepsiCo’s current ratio was calculated to be 6.4 as compared to Coca-Cola’s which was calculated to be 1.13; PepsiCo has more assets which can be converted into cash than Coca-Cola by a ratio of approximately 6:1 respectively. The reason for this is that PepsiCo has more diversity of product which includes beverages, and snack foods as compared to Coca-Cola which has mainly beverages. The current ratio gives some indication of the company's ability to pay its current obligations...
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...The current ratio is very poplar liquidity ratio; it is used to determine the short term liquidity of the company means that enough current assets (Cash, prepaid Insurance, Cash equivalents, Account receivable and Inventory etc) are available with company to meet it short term liabilities obligations. In other words current ratio determines the company ability to pay off its short term liabilities via available current assets. In theory, higher the current of the company better will be the liquidity position. Formula: [pic] Current ratio figure is calculated after dividing the company current assets with current liabilities of the company. Example: Let’s assume company ABC balance sheet contains currents assets of 10,000 dollars and 5,000 dollars current liabilities. Current Ratio = $ 10,000/$ 5000 = 2.0 Analysis: The current ratio is a good tool to investigate company liquidity but sometimes it’s misleading. Higher current ratio is not necessarily mean better liquidity and lower current ratio is not necessarily bad liquidity. Current ratio focuses on amount of current assets and liabilities although the fact is that turning current assets to cash require time which varies company to company. Let compare two companies’ current ratios. | |Company A |Company B | |Current Assets |$ 6000 |$ 3,000 | |Current Liabilities |$ 2000...
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...Patton-Fuller Ratio Computation Patton-Fuller Ratio Computation July 8, 2013 HCS/405 Regina Robinson The Eight Basic Ratios 1. Current Ratio (Unaudited) 2009 Current Assets $128,867 ÷ Current Liabilities $23,807= 5.4129877 or 5.413 (5 to 1) 2008 Current Assets $130,026 ÷ Current Liabilities $8,380 = 15.516229 or 15.516 (15 to 1) Current Ratio (Audited) 2009 $128,867 ÷ $23,807= 5.3709833 or 5.371(5 to 1) 2008 $130,026 ÷ $8,380= 15.516229 or 15.516 (15 to 1) Disagree: This ratio is consistently a measure of short-term debt paying ability (Baker & Baker, 2011). However, it must be carefully interpreted (Baker & Baker, 2011). Observationally, the CEO’s report to the board that all financial ratios have improved is inaccurate; in all actuality, the ratios have not. In effect, the numbers simply do not back up the declaration. The unaudited and audited current ratios show that in 2008 the hospital’s assets were greater than those in 2009 were. This ratio also shows the current assets in 2008 were much higher than the current liabilities for the same year, a ratio of 15 to 1. In 2009 the current assets to current liabilities ratio was only 5 to 1. The hospital’s assets were lower in 2009 and yet the liabilities in 2009 were higher. The hospital’s assets were higher in 2008 and the liabilities in 2008 were lower. This shows the hospital was more profitable...
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...regarding the acquisition of County Chicken. One of the questions that is brought up in the case is whether 49 percent ownership in County would give them controlling interest and allow Bluewater to effectively manage County and help control the continuous supply of chicken to Bluewater. Carson questions if it would be necessary to purchase 51% rather than 49% in order to guarantee their controlling position. In considering the answer to this question I think it is important to understand which of the current shareholders will be selling their ownership. With the majority of County being owned by three individuals (23% each) and the remaining by 31% owned by 40 individuals, Bluewater may want to purchase the 51% controlling interest if the majority of the shares being sold are those of the 40 individuals owning 31% leaving the controlling position among the three majority shareholders. I think Bluewater could have issues if they do not purchase more than 50%. With the current proposal from Bluewater to purchase 49% of County, the price per share would be $42. One thing the case does not address is how the purchase will Bluewater finance the deal. Based on the notes to the financial statements, Bluewater must maintain equity of $200 million. Beyond the financing of the deal, I think it would be wise for Bluewater to acquire County. County supplies Bluewater with 80% of their chicken supply and without the agreement and supply, Bluewater would not be able to obtain the chicken...
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...Financial Ratio The financial ratios are used for the purpose of determining the financial performance of an organization. There are various financial ratios which are taken into consideration by the financial analysts. The most important ratio which shall be taken into consideration is the net profit ratio. The net profit ratio of an organization is a particular ratio which is determined by the organization by deducting the expenses incurred by it from the revenues generated by it. If the net profit ratio of an organization is lower then, it can be said that, the organization does not have the ability or control over its expenses to a larger level. The organization compares its net profit with the competitors. The organization which is higher net profit ratio is considered to be better in comparison to the competitors of the organization (Shim & Siegel, 2007). There are various organizations which earn a lot of revenue but, if an organization will not have control over its expenses then, there will be the situation that, the organization will not be in the position to have profitability. The success of an organization is judged by its profitability other than anything else. Meeting Financial Obligations The organization taken into consideration in relation to the present paper is Universal Health Services Inc. For the purpose of determining the ability of an organization to meet its financial obligations, it is important to consider the current ratio. The current ratio is calculated...
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...| ROE | DUPONT Analysis | | Current Ratio | Quick Ratio | Cash Ratio | | NI/Equity | NI/Sales | Sales/Assets | Assets/Equity | CA/CL | (CA-Inv.)/CL | Cash/CL | 2009 | 0.0538 | 0.0708 | 0.4587 | 1.6584 | 1.3182 | 0.7491 | 0.4303 | 2010 | 0.0928 | 0.1073 | 0.5775 | 1.4973 | 2.5551 | 1.1875 | 0.5921 | 2011 | 0.0906 | 0.0994 | 0.5797 | 1.5729 | 3.3915 | 1.6024 | 0.6626 | Has the company drastically increased or decreased its use of debt? There are slight increase and decrease in use of debt, but it does not changed drastically. Has the company’s liquidity position changed over the three years? Yes, the company current and quick ratio have increased; especially there is a drastic increase to the quick ratio. Has ROE been rising or falling? If so, what has contributed to this change? The company’s ROE has been rising, because there was a huge increase in net income, starting from 2010. What trends do you see developing in the data? The company is becoming more liquid every year. It is very good to pay of the dept but there is less tax saving so they should lower the liquid ratio little bit. Also there cash is decreasing a little bit so they might want to have a little bit more cash for future investment. Do you see any major changes in the financial status of the company over the time period? The current liabilities have decreased drastically and their net income have increased almost twice as much. And their current asset is increasing but there cash is decreasing...
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... 1. The bank can apply expert knowledge to estimate distribution functions 2. Reflect the Level of operational risk: adjustment on the result of the scorecard 3. Identify the Source of Operational risk: This will help in specifically what part of the product or business lines and which units causes operational risk 4. Present causes of operational risk: management can take actions on what the operational scorecard shows which will help mitigate operational risk 5. Reflect on quality of operations: the operational risk level of a bank depends on the quality level. Changes on operational level can help reduce current risk by improving quality of operations. 6. Supplement information: information is really vital and it will help for the bank to pinpoint which contributes to its current operational risk. 7. Adjust on the current level of operational risk: this will allow for the management to set its priorities. Source: Anders, U., & Sandstedt, M. (2001). An Operational Risk Scorecard Approach.Operational Risk, 1, 47. Retrieved April 14, 2013, from...
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...Point In Time No additional ACOE districts should be brought online to Escape OL5 software. The current districts on Escape OL5 in Alameda County remain in an implementation phase expectation of support. * OL5 is not yet a turnkey software package- * Still in development with goal of effective & efficient processes * Districts are part of the “debugging” * CRs appear to languish for some time & priority is determined by whom? * Frequent releases yet work-arounds continue for basic California school business accounting and payroll processes * Reliable? Successive releases sometimes lose previous fixes * Accurate? Successive trials do not always yield the same result * Responsive? Does not provide for some basic processes * Confusing? Too many options when the basics aren’t reliable * Credible? One whole manual chapter & report are not usable * Resources? ET expanding to other districts… * Current on-line districts have not all completed a full year cycle * Steeper learning curves due to frequent releases * Flux in legislation & resources is dynamic as it is * Accountants struggle with “art” - custom reports, data access * Basic business processes “science” must be tight * Key accounting positions are not being backfilled * Current ACOE support staff is in flux * Forensic accounting skills to drill down into software &...
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...Executive Summary Widget Production ISCOM / 305 University of Phoenix Taylor Inc is manufacturing the Widget X that requires a special assembly line. At this point re-evaluation of labor productivity is needed due to the difference between the regular Widgets and the Widget X. With careful consideration of this project, operations-management must compare the current labor productivity to two alternative methods that would help them with the increase. A cost-benefit matrix will be provided to show comparison of current labor productivity, alternative one and alternative two labor productivity as well as, the effects the alternatives would have, and what the benefits of networking strategies to streamline operational procedures would be. Taylor Inc Cost Benefit Matrix | |Current |Alternative 1 |Alternative 2 | |Wasted Motion |27% |1% |7% | | Physical Lifting |42 |12 |23 | |People Required |17 |6 |9 | |Productivity |208 |392 |288...
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...Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that...
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...* How information systems are helping the company To keep its place as one of the leading consumer product goods companies, Procter & Gamble is focused on understanding the current market state and predicting how future market changes affect consumer behavior and global brand strategy. P&G tasked the MIS team with two projects to support these goals. Firstly, the team developed a method of estimating key consumer metrics by country and built an application to facilitate analysis of these metrics and assessment of future opportunities. In addition, the team created a process by which specific brand measures could be compared over time and assessed for positive growth. Secondly, the team has benchmarked and recommended a data visualization solution for global market and economic data to aid decision makers’ focus on salient issues. This recommendation will be supplemented by a selection of customized graphs and dashboards, focusing on important concepts and trends. With these new capabilities, P&G will be better able to identify where current and new market opportunities lie, and how it can successfully implement its brand strategy in those areas. Currently, the team has completed all major deliverables and is preparing for its final presentation. The project has been a valuable learning experience for the team, exposing them to the fast-paced world of marketing strategy and analytics. MIS program allows students to work on real projects that provide real value...
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...gives us immense pleasure to announce the launch of a new product HypVelocity, which is an EVDO based technology, being offered only by us in the country, to match your future needs of high speed internet connectivity. The data-transfer speeds that can now be achieve shall be minimum upto 50 times higher than the conventional products. More details shall soon be provided by our executive who shall visit you, after taking prior appointment. HypVelocity shall be available, at a very special offer, to a few select clients of ours, by surrendering the current data-card, the services of which were earlier offered at no cost, by paying a very nominal one-time fee of Rs 100, and a monthly tariff of Rs 150. For an extremely high-valued customers as yourself, the company, besides HypVelocity connection, shall also offer free access to all Value-add services for a year, and on-line SMS pack worth Rs 250. While the services on the current data-card are being withdrawn w.e.f 31st March’09, the HypVelocity services are available immediately at your call at the below-mentioned phone numbers. In parallel, as stated earlier, our executive shall soon be in touch with you, to satisfy all your queries on the new services, and the migration plan. Happy surfing...
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...In the current competitive world, its only who is fit survives i.e. person who work will complete dedication and with immense concentration is almost certain to achieve his or her desired target. Now question arises what’s the motivation behind being workaholics? People who are in business or in service or even government employees have some or the other motivation to work. Business houses wants to work in order to achieve better sales and net profit compared to the last years, with the help of various planning and implementing the same. Person in service works to achieve sales target or the weekly or monthly reports targets in order to get better variables and incentives. Government employee work to help in the development of economy, by making various committees for infrastructure development, social development etc. In the current economic situation companies survives only if it has right entrepreneur. Entrepreneur makes the plans by his innovative thinking and plan is executed with the help of his or her employees. Employees in return get incentive along with fixed salary and entrepreneur gets better profit. One thing in common in all of them is vision, thus they become workaholic to achieve that piece of success which they ever dreamt off. More the person works, more he is near to achieve his or her target. Targets can either be net profit for businessman, sales target or monthly reports target of service man or development of economy and society for politician or government...
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...Recommend and Implement a New Maintenance Ticketing Process Comcast South Florida has recently launched its new Customer Guarantee program that guarantees the work and services performed for 30 days or the consumer is able to receive several different packages as compensation. Recently the organization has changed its ticketing process when referring jobs to the Maintenance / Engineering Department and has asked my local leadership team to review and revamp the new process. This proposal provides a brief overview of the current process including its intricacies and outlines how we will perform our research and testing in preparation for our full report. Problem The newly revised Maintenance / Engineering ticketing system (also known as the - refer to maintenance) was intended to streamline the process and reduce downtime. Unfortunately, this revised ticketing process resides within its own system (TTS and Watchtower) and does not communicate with the current billing system (CSG), work order system or the call center. This has caused unnecessary additional down time for customers if their issues were not resolved the 1st time, financial loss from the company’s perspective and an inconvenienced customer. We need to identify a methodology that will allow the new ticketing system to communicate to the traditional billing system and all cross-functional areas. Justification/Feasibility With the new addition of Watchtower and TTS maintaining and issuing maintenance ticket numbers...
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...- Anti –discrimination - Parenting leave - Military leave - Harassment policy Annual Strategic Human resources Plan 20XX to 20XX Staff Induction Procedures Mission, Vision Statement along with Values Staff reward and recognition policy Bounce fitness internal communication strategy, this document suggest that bounce fitness audience is the following Total Amount of people - 34 Composition: 26 staff, 4 managers, 3 senior managers and 1 CEO Location: 6 in Brisbane, 14 in Cairns, 7 in Sydney, 7 in Melbourne Working Language: English Native Language: 28 English, 1 Spanish, 1 French, 1 Korean, 1 Italian, 2 Japanese Also on the Hierarchal Structures show that current staff have a mix of gender, age, race (precisiongroup, 2012) Bounce fitness, with their current policy, is implying the importance to their company surrounding the recruitment of diversity as they are a large multinational organization. They express their vision of what they are working towards and understand the importance diversity can bring to their organization. They see the value having a diverse workforce. Bounce fitness wants to ensure that all employees are treated equally. They are seeking to create a workforce in which all staff are supported and encouraged to work at the height of their potential Bounce fitness want to ensure that the organization, recognize all staff...
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