...Analyzing AsiaCell Financial Statements Financial Statements Analysis 1/17/2016 Prepared by: Azhy Azad Ahmed Ari Sherzad Zamo Zana Mohammed Omed Contents Introduction 3 Financial statements of AsiaCell Company 4 Financial statements Differences: 6 Definitions: 7 Liquidity Ratios: 7 Solvency Ratios: 7 Profitability Ratios: 7 AsiaCell Ratio Analysis 8 Liquidity Ratios: 8 Solvency Ratios: 12 Profitability Ratios: 14 Conclusion: 18 Introduction We are analyzing the financial position of AsiaCell Company during the years (2011, 2012, and 2013); the financial statements are provided on Iraqi Exchange and commission website (www.isx.iq). It is important that you fully understand the data presented here. Please be aware that the analysis presented is not a prediction of the future but rather a tool for monitoring the progress of AsiaCell business over time. This information should factor into your decision making, but it should certainly not be the only factor in your business decisions. Be sure to consult all appropriate resources and professionals before making any decisions that may affect the financial health of AsiaCell Company. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Financial statements of AsiaCell Company Financial statements Differences: There many differences...
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...There are several financial metrics and ratios that are available from the balance sheet and the statement of cash flows that can indicate the financial health of a company. I will be taking a look at some of these metrics and ratios. I will look at where they come from and how they are used by business managers, investors, and government regulators. These can be very helpful to the informed investor to ensure a wise investment. The first financial metric that we will look at is liquidity. “Liquidity describes ‘the amount of time that is expected to elapse until an asset is realized or otherwise converted into cash or until a liability has to be paid.’” (Donald E Kieso PhD, Jerry J. Weygandt PhD, & Terry D. Warfield, 2012) Liquidity provides information such as the ratio of cash or near cash to the short-term liabilities. Liquidity is important in that it can indicate whether a company will have the resources necessary to pay its current and maturing obligations. Generally speaking, the better liquidity a company has the less risk of failure it faces. Closely related to liquidity is solvency. “Solvency refers to the ability of a company to pay its debts as they mature.” (Donald E Kieso PhD, Jerry J. Weygandt PhD, & Terry D. Warfield, 2012) The lower the debt a company carries the higher the solvency as the company will not need much of its assets to pay its debts. Liquidity and solvency affect the company’s financial flexibility. Financial flexibility “measures the...
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...AN ASSAIGNMENT ON FINANCIAL RATIO ANALYSIS OF M.I. CEMENT FACTORY LIMITED Prepared for | Prepared byGroup DOEL | Mohammed Sawkat Hossain. Lecturer, Faculty of Business Studies, Jahangirnagar University, Savar,Dhaka. | * Khairuzzaman MamunID No :20113137Contact no : 01761808592Email : kpmmamun@gmail.com * Md. Yeadul Islam ShaikhID No :20113118Contact no : 01727980638Email : yeadul_ju@yahoo.com * Shameema yesmin sumeID No :20113117Contact no : 01918615964Email : sumiju34@gmail.com * Md.Razaul islamID No :20113220Contact no : 01670683420Email : engr.minar@yahoo.com | Submission Date: December 09,2011 Faculty of Business Studies, J.U. December 09, 2011 Mohammed Sawkat Hossain. Lecturer, Faculty of Business Studies, Jahangirnagar University, Savar,Dhaka. Subject: Submission of the assignment of the course Financial Accounting. Dear Md. Sawkat Here is the assignment that you asked ask us to conduct on March 31, 2012 on a Financial Ratio Analysis of M.I. Cement Factory Limited. In this assignment we have included all the required data you have asked us to represent. Finally, we have attached the financial statements in the appendix. We will be pleased if you have any further query for this you can call us at your convenient time and place. Sincerely yours, Group DOEL Acknowledgement From the core of our heart we would like to convey our earnest admiration, loyalty and reverence to the almighty Allah, the most merciful, for keeping...
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...Interpreting Financial Results Cesar L. Lebron Rodriguez University of Phoenix FIN/571 3/11/2015 Prof. Eric Ramos Interpreting Financial Report “The purpose of this review is to analyze the financial results of a multinational corporation. The analysis compared financial statements for the past three years (2014 thru 2011). The multinational corporation selected was Haemonetics Corporation. Haemonetics Corporation is a global provider of blood and plasma supplies and services. The company was founded in Braintree, Massachusetts by Dr. Jack Latham in the 1970s. Today, the company has expanded and has offices located in 16 countries.” “For company financial statement analysis , Google Finance website was used to gather 2011thru 2014 financial data. The financial metrics evaluated were the following: Liquidity Ratio, Capital Structure Ratio, Asset Management Efficiency Ratio, Profitability Ratios and Market Value Ratio. Not all financial ratios was calculated or considered. At least one (1) ratio was used within each financial metrics to understand and compared Haemonetic Corporation financial performance.” Table 1, showed the results per different financial ratios Liquidity Ratio “Current ratio is the comparison of organizations current assets to its current liabilities. The current ratio indicated...
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...Financial Analysis of Target & Walmart Corporation Columbia College ABSTRACT This paper is a brief background and historical overview as well as financial analysis of Walmart and Target public incorporated companies operating in the retail industry. The financial analysis of both companies using current ratio, net income margin on sales and book value per share reflect relative stable companies with strong balance sheet and low exposure to equity investment risk. Although both companies appear to be fundamentally strong and stable, however, Target seems to be better than Walmart in the context of profitability, liquidity and equity risk exposure as reflected in the calculations. Between 2009 and 2013, Target consistently outperformed Walmart in terms of liquidity position, profitability as well as risk coverage measured by book value per share. INTRODUCTION Walmart is a well-known in the industry when it comes to retail business across the globe. It operates many retail stores in various formats around globally. The company was founded by ”Sam Walton in 1962, incorporated on October 31, 1969, and started trading as public quoted company on the New York Stock Exchange in 1972, and it currently has 30% market share in the America retail industry” (Reuters). It is headquartered in Bentonville, Arkansas. Two of their fundamental operating principles are Everyday Low Cost (EDLC) and Everyday Low Price (EDLP). These two principles allowed the company to build a foundation...
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...eyeball view of its financial performance? Companies need to constantly monitor their performance in terms of finances. Some companies use boards to assist in monitoring the financial activities of their organization. Monitoring corporate performance is a critical function of every board. An effective board monitors the overall performance of an organization, including its operational, strategic, and financial objectives. A key aspect of the board’s oversight role is to actively monitor management’s execution of approved plans, as well as the organization’s progress toward meeting its objectives. It is essential for the board to prioritize and enumerate the organization’s objectives in monitoring its performance. Boards should establish a consistent method for receiving, reviewing, and utilizing the data received. Boards use many data points to monitor company performance, including financial and non-financial metrics, and industry and peer information, which can come from board reports, trend analyses, surveys, financial statements, industry benchmarks, and audit opinions. Knowing which metrics are most effective in understanding performance and indicating potential issues can be challenging, yet beneficial to the organization. Organization’s financial plan typically links to the annual operating plan that has been established. The annual operating plan provides details on the organization’s objectives and how they will be achieved, while the financial plan identifies the...
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...Building a Financial Analysis of an Organization I. Preparation a. Find your industry on Standard and Poor’s Net Advantage website. Read carefully the “Key Industry Ratios and Statistics” and “How to analyze……” sections. b. Print your organization’s most recent annual report and read through it carefully, including the footnotes to the financial statements. c. Read the “Analyst’s Research” page on your organization available on Morningstar Library Edition. II. Assemble/Compile Raw Materials a. Spread and common-size three years of FYE financial statement data b. Identify 6-10 financial ratios that you believe are relevant to understanding the organization’s financial condition. There should be at least one ratio for each of the categories identified in your text. Calculate (or find) the ratios for the organization for the last three FYEs. Place these on an easily understood chart. c. Identify at least three industry specific metrics that are important to helping you understand the organization. Document the three metrics for, at least, the most recent fiscal year end in an easily understandable chart – more if you can capture it. Among other places, this data is often available on the “Key Industry Ratios and Statistics” page on the Standard and Poor’s Net Advantage” website III. Examine and Explore Raw Materials a. Before you start, make sure that you are ready to ask the question “why”...
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...Animal Cancer Foundation | SAVING THE LIFE OF A LOVED ONE | | Comprehensive analysis of ACF’s mission, organization and financial performance. | | Martha Morales | 11/29/2011 | | Animal Cancer Foundation’s Mission Statement To fund and develop research focused on the biologic similarity of cancer in pets and people that will expedite therapeutic and preventive benefits for both. To educate the public and scientific community about the biologic similarity of cancer in pets and people; also, to communicate the ways in which comparative oncology is accelerating the treatment, prevention and ultimate eradication of cancer. Financial Analysis Based on the form 990 from 2009, Animal Cancer Foundation uses the cash method, therefore, does not include accounts receivable and other accrual items of income under the income section or accounts payable or other accrual items of expenses under the expenses section. The total revenue for the year ending June 30, 2010 was for $64,186 and the total expenses were $89,867. These numbers led me to conclude that the company has a deficit of $25,681, meaning that the organization may suggest future financial difficulty. Analyzing revenues and expenses figures for the last 5 years from the forms 990 (please see Graph No. 1 Revenues vs. Expenses), I can support the idea that the organization’s ability to generate income has decreased and their expenses should be higher. This could be due several reasons such as...
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...ISSUES IN ACCOUNTING EDUCATION Vol. 28, No. 1 2013 pp. 77–92 American Accounting Association DOI: 10.2308/iace-50298 Going Concern Designations and GAAP versus Non-GAAP Earnings Metrics James L. Bierstaker, Thomas F. Monahan, and Michael F. Peters ABSTRACT: Many students have not spent much time studying or contemplating the importance of non-GAAP (Generally Accepted Accounting Principles) earnings to the ‘‘Street.’’ Based on the facts of an actual company and utilizing the financial information drawn from this company’s 10-K and Earnings Release, this case introduces students to the strengths and weaknesses of GAAP and non-GAAP earnings measures, and why the Street might be more interested in cash and recurring earnings in attempting to predict movements in stock price. It also provides the instructor with an opportunity to discuss the dangers of allowing firms to emphasize earnings in their press releases that are not defined by an external authoritative body (such as the Financial Accounting Standards Board [FASB]), and how this can hurt the consistency and reliability of reporting. This is an important discussion, since regulators have recently formally proposed to include non-GAAP measures in their overhaul of the auditor reporting model (Public Company Accounting Oversight Board [PCAOB] 2011). The case also familiarizes students with current auditing guidelines dealing with the going concern decision and the potential role that non-GAAP earnings can play in this decision...
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...EXECUTIVE SUMMARY The following report contains a critical analysis of the capital structure strategy employed by Leighton Holdings Ltd during the Global Financial Crisis (GFC) and also an assessment of optimal capital structure Leighton should use to fund future investments. Examination of the changes of the capital structure of the company over pre-GFC and post-GFC period (2004-2010) reveals a range of considerations were deliberated in the financing decision; these include not only the capital market conditions but also the size and urgency of funding required as well as costs and availability of alternate sources of funds. Applying various theoretical hypotheses in conjunction with a comparative study using Peer Firms, the report finds the current debt/equity mix lies in the high range of estimated optimal values. The current structure does compensate for the current volatility by reducing exposure to debt markets but also attempts to efficiently exploit a recent recovery in debt markets. Nonetheless, on the backing of peer analysis, Leighton should reduce its reliance on debt to better position itself against uncertainty and also exploit its advantages in debt markets to refinance debts for longer terms, hence locking in current rates. INTRODUCTION Leighton Holdings Ltd (LEI), the largest construction and contract mining service providers in Australia, has significant exposure both internationally and in a number of diverse markets. It’s core business however, which...
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...Kellogg Company Narrative - Industry Analysis Nicole Gabor Abstract The Kellogg Company and General Mills are the world’s leaders in manufacturing cereals and snacks. The financial analysis of both companies shows similarities in market trends and issues both companies are facing. The following analysis will shed light the financial standing with direct relation to the DuPont Identity and ratios lending to success and industry trends. Kellogg Company Narrative - Industry Analysis An industry analysis was completed on the well-known company, Kellogg (NYSE:K). The Kellogg Company is one of the world’s largest producers of cereals, snacks and frozen foods. The company product portfolio includes favorites such as Frosted Flakes, Rice Krispies, Eggo waffles and Nutri-Grain cereal bars. Kellogg was founded in 1906 with headquarters located in Battle Creek, Michigan. The company has manufacturing facilities in over thirty-five countries and markets products in more than 180 countries globally. The company is divided into seven business segments which consist of North America, Europe, Latin America, Asia Pacific, U.S. Morning Foods and Kashi, U.S. Snacks, and U.S. Specialty. Kellogg’s biggest competitor is General Mills (NYSE:GIS). General Mills was founded in 1866, and is one of the world’s leading manufacturers of consumer food products. The company has over 100 brands, including Betty Crocker, Cheerios, Yoplait, Gold Medal, and many more. General Mills manufacturers...
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...Zain-ul-Abideen | Fauji Fertilizers Company Limited | [Financial analysis] | | Fauji Fertilizer Company Limited With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was incorporated in 1978 as a private limited company. This was a joint venture between Fauji Foundation and Haldor Topsoe A/S of Denmark. The initial share capital of the company was 813.9 Million Rupees. The present share capital of the company stands above Rs. 8.48 Billion. Additionally, FFC has more than Rs. 8.3 Billion as long term investments which include stakes in the subsidiaries FFBL, FFCEL and associate FCCL. FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons. * Through De-Bottle Necking (DBN) program, the production capacity of the existing plant increased to 695,000 metric tons per year. * Production capacity was enhanced by establishing a second plant in 1993 with annual capacity of 635,000 metric tons of urea. * FFC participated as a major shareholder in a new DAPS/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) commenced commercial production with effect from January 01, 2000. The facility is designed with an annual capacity of 551,000 metric tons of urea and 445,500 metric tons of DAP, revamped to 670,000 metric tons of DAP. * In the year 2002, FFC acquired...
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...some strategic metrics that movie exhibitors care about that are reported in the case? How does your exhibitor compare to the other exhibitors? The industry average? Number of theaters by complex size, market leaders, tickets sold and box office gross, average movie ticket price Changes in interest rates and the availability and cost of capital, the effect of the leverage on its financial condition, prices and availability of operating supplies, cost control procedures on operating results. 2. What metrics does your movie exhibitor report on their web site? Are they similar or different from what is reported in the case? Concessions, Advertising, Box-office revenues. Small to mid-size markets, Acquisitions, which is focusing on taking advantage of opportunistic small market acquisitions. Screen advertising, box office admissions, concessions and other revenues. 3. Using your company’s spreadsheets, or the summary spreadsheet, prepare your evaluation of: a. Short-term solvency, or Liquidity – Are they solvent in the short term? Ratios increased from 09 to 12, which means they already meet its shot-term financial obligations. b. Long-term solvency, or financial leverage. Ratios decrease from 09 to 12, not meet the long-term financial obligations. c. Asset utilization, or turnover. Efficiently manage its assets d. Profitability. Have profits e. Summarize your evaluation of the common-size income statement and changes over...
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...The purpose of this report is to conduct a comprehensive business performance analysis using financial historical information/analysis of Costco. While Costco may not seem to have the revenue, assets and market share like similar and larger companies such as Wal-Mart and Target they are without a doubt a very profitable and successful company. What Costco lacks in high margins, they make up for in being a highly efficient company boasting high asset and equity turnover while maintaining optimum liabilities and debt to equity ratios. Costco is a great company that is seeing profitable success due to their business model that prioritizes quality for both its customers and employees. However, emerging with the 21st century are new ways of doing business. Online companies like Amazon.com are quickly taking market share not just from Costco but also their biggest competitors: Wal-Mart and Target. In order to stay relevant, Costco will need to maintain their business growth in the coming years and also find ways to compete against online retail giants like Amazon.com. 1. Company Background Costco is a multi-billion dollar warehouse company that operates on a global scale. Consumers can frequent Costco to find merchandise including but not limited to groceries, electronics, furniture and home goods, pharmaceuticals and gasoline. Costco specializes in purchasing its merchandise wholesale and re-selling to consumers. Consumers who frequent the warehouse club are required to pay...
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...growth seemed unstoppable and Krispy Kreme was able to beat Wall Street’s expectations. Krispy Kreme continued to outperform until 2004 when some accounting woes were brought to light and analysts starting noticing other anomalies that indicated that things were not quite as good as they seemed. The firm’s stock price quickly plummeted from its peak and lost more than 80 percent of its value in only 16 months. This case study focuses on the use of financial statement analysis, and other factors that an equity analyst would use to gauge the health of a firm, to help identify symptoms that demonstrate things where not as good as they seemed at Krispy Kreme. The report starts by introducing Krispy Kreme, their history, structure and strategy. We will then discuss Krispy Kreme's financials and other tell tales that were available to predict the demise of the firm. To wrap up the report we will conclude by summarizing all the signs that demonstrated things were amiss and answer the question: "Can financial statement analysis predict the future?" Krispy Kreme History Krispy Kreme began as a small business in Winston Salem, North Carolina in 1937 shortly after the company’s founder, Vernon Rudolph, purchased a doughnut recipe from a French chef from New Orleans. Krispy Kreme was initially a doughnut wholesaler that sold its products directly to supermarkets. Krispy Kreme doughnuts were such a hit with consumers that Rudolph decided to make them available at the factory...
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