...DardenBusinessPublishing:223021 UVA-C-2350 Jun. 23, 2014 This document is authorized for use only by MichaelFulton. Please do not copy or redistribute. Contact permissions@dardenbusinesspublishing.com for questions or additional permissions. RATIOS TELL A STORY—2013 Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive product-pricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput (i.e., turnover). A second reason for some of the variation in financial results and conditions among companies is the result of management philosophy and policy. Some companies reduce their manufacturing capacity to match more closely their immediate sales prospects, while others carry excess capacity to be prepared for future sales growth. Also, some companies finance their assets with borrowed funds, while others avoid that leverage and choose instead to finance their assets with owners’ equity. Some corporate management teams choose to not pay dividends...
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...Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE’S FINANCIAL PERFORMANCE December 2013 Ratio Analysis Acknowledgments This guide and supporting tools were developed by Julie Poznanski, Bryn Sadownik and Irene Gannitsos as part of the Demonstrating Value Initiative at Vancity Community Foundation. The guide was released in December 2010, with minor updates in December 2013. Further copies of the guide can be downloaded at www.demonstratingvalue.org. i|Page Ratio Analysis Contents Introduction .................................................................................................................................... 1 The Ratios ....................................................................................................................................... 2 Profitability Sustainability Ratios........................................................................................... 2 Operational Efficiency Ratios ................................................................................................ 5 Liquidity Ratios .......................................................................................................................... 7 Leverage Ratios ........................................................................................................................ 9 Other Ratios .........................................................................................................
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...Financial Research Report Thomas C. Page Bassam Ali Hamdan Fin534 March 7, 2016 When reviewing some of the best performing stocks in the business world, they all have one thing in common – a tremendous brand. A company with a strong brand name like McDonald’s Corporation means a lot in the retail sector and investing in a highly-admired brand that offers an easy-to-understand, fairly straightforward company is a good business decision. Not only is McDonald’s a popular brand name, but it has a list of statistics to support its popularity. It has been ranked as the most recognized fast food restaurant internationally and is one of the top three American brands. According to the Forbes List, McDonald’s is the sixth World’s Most Valuable Brand. It is number 207 in the Global 2000, and is listed as number 345 in sales, number 124 in profit, number 702 in assets and number 87 in market value in the world. As of May 2015, its market cap was 92.5 billion and its ticker, “McD”, was $117.48. Some more detailed information follows(Forbes, 2012): Industry: Restaurant Country: United States Founded: 1955 Chief Executive Officer: Stephen Easterbrook Website: http://www.mcdonalds.com Employees: 420,000 Sales: $27.44 billion; Assets: $34.23 billion; Profits: $4.76 billion Headquarters: Oakbrook, Illinois The company was founded by Ray Kroc on April 15, 1955 and now operates internationally in Europe, Asia, the Pacific, Africa, and...
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...Assignment 3: Fraud in the AIS Ditanyan Patterson Jay E. Wright, CPA, CFE Strayer University ACC.564 August 17, 2014 Abstract After researching for a firm that was involved in a fraud and/or embezzlement case I came upon the embezzlement of Koss Corp. Koss Corp was a company in Milwaukee, Wisconsin that manufactured stero headphones, speaker phones, computer headsets, wireless headsets, and much more. The case of Koss came about because of inaccurate financial ststements, books and records, and the lack of adequate internal controls from the years of 2005-2009. Two of Koss former employees, Sujata Sachdeva and Julie Mulvaney were the ones to engage in a wide-range of accounting fraud to cover up Sachdeva's embezzlement scam. From the lack and inadequate internal controls and failures in overseeing the accounting and financial reports by the CEO and CFO they were able to embezzle a huge amount of money. Throughout my research I will write a paper in which I must assess the failures of the firms accounting information system to prevent the related fraud/ embezzlement; Also, evaluate the effectiveness of Koss stakeholders in the event that a third-party accounting system suffers a breach. Along with assessing the level of responsibility of the software provider to the business and their clients. This paper will determine what advances in accounting and/or information technology could have done to prevent such acts from occuring, the paper will give changes that should...
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...There are significant differences between investing and trading. Investment considers longer holding periods whereas trading focus on only short-term holdings (Chong, 2012). An investment in Nordstrom is an investment in growth fund versus a value fund. Growth funds tend to experience faster than average growth in regards to earnings, revenues, or cash flow. The expectation is that growth funds have the potential for higher returns however these funds may also represent greater risk in comparison to value funds; these funds generally perform better when stock prices are rising and underperforming the market as stock prices fall. Investing in Nordstrom could require a higher tolerance for risk and an investment on time (“Growth Investing” 2015). For an investment in Nordstrom our investor falls into two profiles: growth profile and aggressive profile. The growth profile is fitting for an investor with patience seeking investments with an expectation that that investment will grow above the average rate in comparison to the industry or to the overall market. An emphasis is placed on equity investments primarily designed to attain growth over a long period of time. Less of an emphasis is placed on fixed income investments, cash and cash equivalents. These investors generally do not require cash from their own investment account but like their investment to grow faster in comparison to the inflation understanding that the investment value may vary occasionally and these investors...
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...AN ANALYSIS OF THE BUSINESS AND FINANCIAL PERFORMANCE OF AN ORGANISATION OVER THE PREIOD OF THREE YEARS THE CASE STUDY OF ACCESS BANK PLC BEING A PROJECT SUBMITTED TO OXFORD BROOKES UNIVERSITY IN PARTIAL FULFILLMENT FOR THE AWARD OF B.SC (HONS) IN APPLIED ACCOUNTING BY xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ACCA REG. NO: xxxxxxx E-mail: xxxxxxxxxxxxxxxxxxxxxxxxxxxxx MAY, 2011 PAGES: 29 WORD COUNT: 6345 TABLE OF CONTENTS PART 1 1.1 Introduction 1.2 Reason for choosing the topic 1.3 Aims and Objectives of the report 1.4 Research questions 1.5 Research Approach PART 2 Information gathering 2.1 Sources used for information gathering 2.2 Description of methods used: 2.3 Limitations of information gathered 2.4 Ethical...
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...WIL Report D Semester 1, 2015 WIL Report D Semester 1, 2015...
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...Financial Research Report ACADIA Pharmaceuticals Inc. FIN 534 Name Instructor Date ACADIA Pharmaceuticals Inc. Financial Research Report 1.0. Introduction Pharmaceuticals Inc. is a publicly traded company in the United States of America in the biopharmaceutical industry. The company is devoted to discover, develop, and commercialize small molecule drugs that are useful in treating disorders in the central nervous system. The current engagement of the company is in treatment of induced dysfunction in Parkinson's disease, schizophrenia, neuropathic pain and glaucoma. All company product candidates are a product of discoveries made at the company’s discovery platform. There is a strong team with industry experience which is put in place to aid in the development of these products. This team work together with the company’s world-class scientific and clinical advisors who are also hired by the company. It was found in 1993 and has it’s headquarter situated in San Diego, in California. The aim of this paper is to evaluate the performance of the company using ratio and stock price analysis. The financial statements for the year ending 31st December 2012, 2011, and 2010 will be used in this analysis. These are complete financial statements covering the whole financial statements retrieved from yahoo finance. 2.0. Rationale for choosing the company for which to invest This company was selected because of interesting trend in the industry. For the past three years,...
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...INFOANALYTICA FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS SUMMER INTERNSHIP REPORT ANANDARUP GHOSHAL 2008 ICFAI BUSINESS SCHOOL, AHMEDABAD SUMMER INTERNSHIP PROJECT FINANCIAL, ECONOMIC RESEARCH AND INDUSTRY ANALYSIS IBS AHMEDABAD 2|Page SUMMER INTERNSHIP PROJECT REPORT PROJECT AREA: FINANCIAL AND ECONOMIC RESEARCH AND INDUSTRY ANALYSIS FACULTY GUIDE: PROF. AMIT SARASWAT COMPANY NAME: INFOANALYTICA COMPANY GUIDE: ULLAS UNNIKRISHAN MARAR IBS AHMEDABAD SUBMITTED BY: ANANDARUP GHOSHAL ENROLLMENT NO: 07BS0024 MOBILE NO: 9913815561 E-MAIL: anandarup99@yahoo.co.in 3|Page I am thankful towards my company INFOANALYTICA a division of the Agarwal management consultants for giving me this great opportunity to work into the company for the summer internship project. It was a very good learning experience for me. I am thankful to the CEO of the company Mr. Amit Gupta. My project guide Mr. Ullas Marar has helped me a lot whenever I needed. My regards to my college faculty guide Mr. Amit Saraswat for being extremely helpful during the project. For him this was working as well as a learning experience. During my project I have got help from many other faculties. I am very thankful to Dr. Rashid Saiyeed, Prof. Toby Mammen, Dr. Saji Kumar and Mr. Ravi Gor. I am thankful to our director Prof. Bala Bhaskaran for providing me this great opportunity of the learning. 4|Page Table of Contents INTRODUCTION: ....................
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...05-5 This Subtopic deals with uncertainty by requiring a probability threshold for recognition of a loss contingency and that the amount of the loss be reasonably estimable. As noted in paragraph 450-20-30-1, when both of those recognition criteria are met, and the reasonably estimable loss is a range, it requires accrual of the amount that appears to be a better estimate than any other estimate within the range, or accrual of the minimum amount in the range if no amount within the range is a better estimate than any other amount. SUBMIT FEEDBACK SUBMIT ANNOTATION 05-6 In contrast, fair value is not an estimate of the ultimate settlement amount or the present value of an estimate of the ultimate settlement amount. Uncertainty in the amount and timing of the future cash flows necessary to settle a liability and the likelihood of possible outcomes are incorporated into the measurement of the fair value of the liability. For example, a third party would charge a price to assume an uncertain liability even though the likelihood of a future sacrifice is less than probable. Similarly, when the likelihood of a future sacrifice is probable, the price a third party would charge to assume an obligation incorporates expectations about some future events that are less than probable. Recognizing the fair value of an obligation results in recognition of some obligations for which the likelihood of future settlement, although more than zero, is less than probable from a loss contingencies...
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...Licensed to: iChapters User Research Method and Methodology in Finance and Accounting Second Edition Bob Ryan Robert W. Scapens Michael Theobold Australia . Canada . Mexico . Singapore . Spain . United Kingdom . United States Licensed to: iChapters User Research Method and Methodology in Finance and Accounting Copyright © Bob Ryan, Robert W. Scapens and Michael Theobold 2002 _______________________________________________________________________ The text of this publication, or any part thereof, may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, storage in an information retrieval system, or otherwise, without prior permission of the publisher. While the publisher has taken all reasonable care in the preparation of this book the publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions from the book or the consequences thereof. Products and services that are referred to in this book may be either trademarks and/or registered trademarks of their respective owners. The publisher and author/s make no claim to these trademarks. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library _______________________________________________________________________ ISBN:...
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...is a decision that should not be taken lightly. It requires the careful planning and research of the company that is a potential investment. It is the responsibility of a financial manager to ensure that his client is making a wise and responsible investment decision. The idea is to invest in a company that has growth potential and that will in the future generate a profit to essentially create a sound invest return for the investor. Introduction Deciding to invest is a decision that should not be taken lightly. Investing can make or break you financially depending on how you play the cards you are dealt. The purpose of this paper is to provide a rationale for the U.S. publicly traded company indicating the significant factors driving the decision to invest in the company. A profile of the investor that is suitable will also be provided. Five financial ratios will be used to analyze the past three years of the company’s financial data and the financial health of the company will be determined. Based on the financial review of the company, the risk level paired with minimization strategies will be determined. The paper will conclude with recommendations of the stock as an investment opportunity. Investments come in many forms. The key to any investment is knowing what type of investor you are and knowing exactly how you want to see your returns from your investment. A financial manager’s role is to educate the client about the risks and rewards of investing in...
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...www.sciedu.ca/ijfr International Journal of Financial Research Vol. 3, No. 3; July 2012 The Strategic Transformation of Automobile Industry in China Som Techakanjanakit School of Management, Wuhan University of Technology 122 Luoshi Road, Hongshan District, Wuhan 430070, Hubei, China Tel: 86-186-7239-9237 E-mail: som7125@hotmail.com Meifang Huang (Corresponding author) School of Economics, Wuhan University of Technology 122 Luoshi Road, Hongshan District, Wuhan 430070, Hubei, China Tel: 86-186-7239-9537 Received: May 28, 2012 doi:10.5430/ijfr.v3n3p8 Abstract In the past few years, the global automobile industry is developing difficultly because of the influence from the financial crisis. In contrast, China's automobile production and sales are still having a blowout type growth, and jumped into the world's largest automobile production and sales market. At the same time, Chinese automobile companies continue to deepen and join with international brand cooperation; independent research and development of the independent brand production, and their technical also get greatly strengthened. Similarly, in the tide of industrial upgrading and international acquisitions, strategic transformation era of Chinese automobile industry has gradually started. This paper based on the world economic crisis brought both challenge and opportunity to the automobile industry in China, comprehensively analysis China's automobile industry development present situation and development trend...
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...Critical Analysis of a Research Paper Towards an integrated contingency framework for MAS sophistication Case studies on the scope of accounting instruments in Dutch power and gas companies By Sandra Tillema Title The title suggests that the article will give guidance towards a contingency framework for MAS sophistication. The Contingency framework states that there is no one right way to manage an organisation, so the part “towards integrated [...] framework” with the word “contingency” seems like a paradox. We feel that we might not have chosen this article if we were looking at the title only because it seemingly contradicts itself. The group agreed that the title is quite long. We have analysed it by defining the main words of which we used the Macmillan Dictionary (2002) (See appendix B). After understanding the words and theory explanation, the title became quite easy to understand. Abstract and Introduction We feel that the abstract provides concise and simple information. It is a good explanation and expansion of the title. We have chosen this article because it can be easily understood. The abstract states that many companies are being convinced to implement newly developed management accounting systems and also comments on its inappropriateness. The author states the reason for this is due to the contingency theory perspective. She also highlights that this article is based on the cases of two power and gas companies. The introduction...
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...Topic: Economic and Financial Evaluation of oil production in the Ghanaian Jubilee oil field; “Tullow Ghana as case study” 1.0 INTRODUCTION Kosmos Energy Ltd. discovered Ghana’s offshore Oil Jubilee Field in 2007. It was the Biggest and brightest opportunity for Ghana’s socioeconomic advancement in crude oil discovery for that year, coinciding with golden jubilee independence celebration “Ghana@50.” The field is located about 60km off the shores of Cape Three Point in the Western Region of Ghana (Kosmos Energy ltd, 2012). The Jubilee oil field is one of the best oil fields off the coast of West Africa. Besides that, the field is one of the largest offshore oil fields discovered off the West African shore in recent years. The total estimated recoverable hydrocarbon resource is about one billion barrels of crude oil and a significant quantity of natural gas (Africa Region, 2009). The crude in the field is light sweet crude with 37 API. The Government of Ghana is fully committed to the development of the Jubilee Oil Field in order to proportionate and equate its economy to other nations.The Government, in collaboration with jubilee field operators, acquired production facilities to enhance the production of oil in the field. The Floating Production Storage and Offloading (FPSO) Kwame Nkrumah, which is 60 metres wide, 330 metres long and has the same length of approximately three football fields, has been acquired for the production of the oil in the field (Araujo, 2012)...
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