...organization. Important aspects of the financial statement of a health care organization are ratios. Analysis of ratios show how two numbers relate or compare to one another. Ratios are a way for organizations to make comparison. These comparisons not only encompass what is happening presently but can also be used to make comparisons about numbers and ratios over time. Ratios are a way for organizations to compare themselves with competitors and the industry. (Finkler, Kovner, and Jones, 2007). There are four major ratios that financial statements analyze 1) liquidity 2) activity 3) leverage and 4) profitability. The financial statement for Mayo Health System for the year 2011 will analyze each area to determine the health of the organization. Liquidity Liquidity ratio looks at an organizations assets and liabilities is an indicator of the organizations ability to pay off debts (Investopedia, 2012). The two main ratios for liquidity are current ratio and the quick test ratio. Below are the calculations for these ratios. I. Liquidity ratios 1. Current ratio Current Assets/Current Liabilities = $10,128.9/5,399.5 = 1.88 Interpretations: a) Current assets are more than enough to pay for current liabilities. b) The company has the ability to pay short term obligations. 2. Quick/acid-test ratio Formula: Cash & equivalents + short term investments + accounts receivable)/liabilities = (1,422.4+4,237.4+141.3)/4099.5 = 1.42 Interpretations: a) This ratio is a better indication...
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...Strategy Development Plan Snead's Dry Cleaning Company has been established and successfully operating area near downtown Washington, Dc tor past 30 years. It is being run under the sole proprietorship by Sheldon Snead's l6lde. The company has a large customer base and provides dry cleaning services for women and men clothing items. The customers can choose to pay either at the time of picking up the items, or by monthly credit card billing. At the end of each month the customers are sent statements itemizing service fees and the charge tor the services to their credit cards for payment. The business will take on to provide concierge pickup and drop off service for dry cleaning and laundry in areas nearby downtown Washington, DC. The business is planning to utilize modem equipment that could handle more throughput as the operating times has been increased from 9 to 16 hours per day. The huge regular customer base is the indication of high service quality and enhanced image of Snead’s Dry Cleaning Company. The sales forecast gradually increase over the next few years based on some basic changes in the operation of business. The Snead’s Dry Cleaning Company earned $580,000 in the previous year, by increasing the operating times and initiating pickup/ drop off laundry service the sales will increase and the business will be able to retain its current customers and attract potential customers. Strategic Objectives: • For providing the laundry and dry cleaning services for...
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...A Ratio Analysis Report on By, Ruta Gadhiya A PROJECT ON “ANALYSIS FINANCIAL STATEMENTS BY USING THE TECHNIQUE RATIO ANALYSIS FOR HINDUSTAN UNILEVER LIMITED” By, Ruta Gadhiya (MBA) A report submitted in partial fulfilment of the requirements of THE MBA PROGRAM (The Class of 2014-2016) For the Module Financial Accounting and Analysis To, Prof. Meghna Dangi ACKNOWLEDGMENTS I express my gratitude to Prof. Meghna Dangi, for her expert guidance, encouragement and suggestion throughout the preparation of this work. She has been a pillar of support and inspired me throughout this study, without her this would not have been possible. I am grateful to the teaching faculties of Auro University-The School of Management & Entrepreneurship for their valuable suggestions and instruction regarding my work. I has also received tremendous amount of help from my friend’s insight and outside the institute. Ruta Gadhiya Abstract The report at hand manifests an in-depth analysis of the financial statements of Hindustan Unilever Limited. Hindustan Unilever Limited is a fast moving consumer goods (FMCG) company of India. The company produces services through products such as cosmetics, household accessories, food packets, detergent and soaps and so on. The purpose of this report was to scrutinize the financial statements of the company and to determine the performance of a company. This report comprises of analysis of the financial statements using...
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...ISOM 249 Functions and Purposes of Financial Ratios I. Functions of Financial Ratios Financial ratios can be used to show a company’s: • Position in its industry (industry comparisons) • Accomplishment of objectives (objective comparisons) • Vulnerability in the economy (time-series/trend analysis) • Future borrowing power and growth potential (leverage ratios) • Ability to react to unforeseen external changes (price/earnings ratio) II. Types of Ratios and Their Purposes • Profitability ratios indicate how well a company allocates its resources in relation to income generated. • Liquidity ratios measure whether a company is able to pay its bills. • Leverage ratios show how a company’s operations are financed. • Activity ratios measure a company’s productivity and efficiency. • Price/earnings (P/E) ratio reflects investors’ estimations of how well the company will be able to cope with unforeseen changes. III. Absolute Standards for Business Performance In many organizations, minimum financial ratios are used to serve as absolute standards for their performance as follows: • Profitability: net profit no less than 3% • Liquidity: current ratio greater than one • Leverage: long-term debt to total equity less than one • Activity: average collection period less than 60 days IV....
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...future assignments as management Professional.ACI Formulation ltd will be more effective in our economy by adopting modern economic technology by extending their activities in human & social welfare.By this report,we are learning much about the Financial ratio analysis of ACI Formulation ltd and we got wonderful experience during our working period to make this report. Lastly, we thank our group members who always inspired us during the working period. 1.2 Significance of the study: The prime reason of this study is to become familiar with the realistic business world and to attain practical knowledge about the banking and corporate world. We all know that there is no alternative of practical knowledge, which is more beneficial than theoretical aspects. 1.3 Scope of the study: The report covers the topic titled “The Financial Performance/Ration Evaluation of ACI Formulation Ltd”. Therefore, the focus of this report is to analyze the financial performance of ACI formulation Ltd. In order to conduct study on this topic, the following topics fall within the scope of the study. * An overview of ACI Formulation Ltd. * Performance analysis of ACI formulation Ltd through trend analysis of financial ratios of ACIF Ltd....
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...Abstract Before selecting the proper financing sources Knowing the costs of financing is a prerequisite. This assignment is regarding the financing issues of business. it is very necessary to have proper knowledge over the financing terms and methods to obtain requisite financing for the organization. One has to know the costs of financing as a prerequisite before selecting the proper financing sources. In this assignment, several advantages and disadvantages are discussed for different financing methods, cost of finance, financial planning and information and many other issues that help to gain a proper knowledge about the financing in organization. Different books and journals have been used to prepare the assignment. Contents Introduction 3 Requirement 1 3 Task 1.1 : Business needs finance and available sources of finance to a business 3 Equity financing 4 Debt Financing 4 Lease Financing 4 Task 1.2 : Accessing and comparing the implication of the different sources of finance 4 Implication of equity financing 4 Implication of debt financing 4 Implication of lease financing 5 Task 1.3: evaluation of the appropriate sources of finance for the above mention businesses. 5 M1: Critically evaluate each available sources of finance to that particular firm. Evaluation should include the pros and cons, and legal aspects of each source. (Merit M1). 5 Case study 1: An engineering firm 5 Equity financing for this firm 5 Debt financing 5 Lease financing...
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... PREPARED FOR: Riyashad Ahmed (RyA) MBA in Finance University of Wales Institute Cardiff, UK. BBA in Finance St. Francis Xavier University Nova Scotia, Canada School of Business North South University Table of Content Executive summary, 1 Introduction, 2 Financial Performance Analysis: Liquidity Ratio, 4 Asset Management Ratio, 6 Debt Management Ratio, 9 Profitability Ratio, 10 Stock Market Ratio, 13 Du-Pont Equation, 16 Modified Du-Pont Equation, 17 Conclusion and Recommendations, 18 Appendices, 19 1 Executive summary The project assigned to us was to study the financial health of Reckitt Benckiser Bangladesh. Through this thorough financial analysis, our aim to understand the financial factors is influencing the company and its decision making. Later, we try and evaluate the various ratios to appreciate their impact on company’s performance over the last five years. The financial statements of last five years are identified, studied and interpreted in light of company’s performance. Critical decisions are anal yzed and their impact on the bottom line of the company is assessed. Finally, we study ratio analysis of the company to analyze the financial position of the company in last five years. 2 Introduction For such a fast-paced, entrepreneurial business some are surprised to learn the company’s history spans 150 years of innovation for consumers across the world. Reckitt Benckiser is a world leader in...
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...Financial decision making Contents Introduction: 1 Task: 1 1 (a) Ratio analysis on the basis of AstraZeneca Annual Report and Form 20-F Information 2012: 1 (b) Business structure and financial structure (comparison and relative advantages of the chosen organization) 5 (c) Compare and comment on the finances of business: 7 (d)Recommend potential investor for the investment decision: 8 (e)All possible Sources of finance for 500000 and best source 8 (f) Management of working capital: 10 Task 2: 11 (a)Preparations of a cash flow forecast and comment on budget and cash flow: 11 (b)Recommendation for managing cash flow: 12 Task 3: 12 (a)Assessment of projects by financial techniques: 12 (b) Recommendation from the above calculations and reason behind the choice: 13 Conclusions: 14 Reference: 15 Introduction: Finance is the paramount part of every organization. Whatever the size of the company, financing plays a vital role in the business organization. Ratio analysis is an important tool for the business decision as well as for the interpretation of the financial statements. We have selected AstraZeneca Annual Report & form 20-F information 2012. All the ratio analysis and decision in respect of the business structure as well as financial structure are based on this particular company. Investment appraisal techniques like- NPV, internal rate of return, payback period, accounting rate of return are based on the given data. This report suggests appropriate decision...
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...Bangladesh University of Business & Technology {BUBT} REPORT ON Ratio analysis of KOHINOOR CHEMICAL Submitted To Ms Reshma Nowreen Lecturer on Finance Bangladesh University of Business & Technology (BUBT) Submitted By: Group Name: SNOW WHITE Intake : 22nd Section : 03 Program: BBA Course Title: Managerial Finance Course Code: FIN 302 |Name Of Group Members | |ID No | | | | | | | |Md. Tafazzal Islam | |09103101127 | |22nd ...
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...Assignment on Financial Ratio Analysis of Mutual Trust Bank Ltd. Course Title : Financial Market & Institutions Course Code : FIN- 512 Submitted to: Dr. Sujit R. Saha Professor Business Administration Eastern University Submitted By: Ifa Iqbal ID: 111600028 Submission Date: 01st January 2012 Company Overview: The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a public company limited by shares for carrying out all kinds of banking activities with Authorized Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each The Company was also issued Certificate for Commencement of Business on the same day and was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act 1991 and started its banking operation on October 24, 1999. As envisaged in the Memorandum of Association and as licensed by Bangladesh Bank under the provisions of the Banking Companies Act 1991, the Company started its banking operation and entitled to carry out the following types of banking business (i) All types of commercial banking activities including Money Market operations. (ii)Investment in Merchant Banking activities. (iii)Investment in Company activities. (iv) Financiers, Promoters, Capitalists etc. (v) Financial Intermediary Services...
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...3 | 2. | LITERATURE REVIEW | 4-6 | 3. | INTRODUCTION | 7 | 4. | STATEMENT ANALYSIS | 8-9 | 5. | RATIO ANALYSIS * FINANCIAL RATIOS * PROFITABILITY RATIOS * TURNOVER RATIOS | 10-1112-1617-20 | 6. | TABLE OF RATIOS | 21 | 7. | CONCLUSION | 22 | 8. | REFERENCES | 23-24 | 9. | APPENDIX | 25-26 | 10. | WORKING NOTES | 27-30 | 11. | NOTES | 31 | ABSTRACT The title of our project is HCL infosystem ltd. The purpose of this assignment is to compare the financial position of HCL between two years 2010 and 2011 by calculating different ratios from a given balance sheet and make a comparative analysis between these two years by comparing with the ideal ratio. Ratio analysis provides us an overview of the company’s financial position in both short term and long term. The ratio analysis, comparative balance sheet and common size balance sheet are gives an accurate picture of company’s position. As financial ratio analysis is a useful technique to measure, compare, and evaluate the financial condition and performance of a company and by calculating these ratios it can help us to answer if the company is business profitable and if it is able to pay its bills and to find how the business is financed and also the company’s financial performance of 2011 compared to 2010. To summarize in short in this assignment we are going to study and calculate different ratios of HCL INFOSYSTEM LTD’s balance sheet and profit & loss account of 2010 and 2011 and make a comparative...
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...RATIO ANALYSIS VARIOUS CALCULATED RATIOS OF NLL • Current Ratio Current ratio may be defined as the relationship between current assetsand current liabilities. Current ratio = Current assets/current liabilities Year200620072008Current Ratio1.101.071.08 Interpretation If the C.R. is less than 2 : 1, it indicates lack of liquidityand shortage of working capital. But a much higher ratio, eventhough it is beneficial to the short-term creditors, is notnecessarily good for the company. A much higher ratio than 2 :1 may indicate the poor investment policies of the management.So liquidity of Bank is satisfactory. 57 C.R1.101.071.081.051.061.071.081.091.101.112006 2007 2008 Years C . R C.R [pic][pic][pic] Net profit ratio = (Net profit / Net income) * 100 Interpretation : This Ratio measures the rate of net profit earned on sales.It helps in determining the overall efficiency of the businessoperations. An increase in the ratio over the previous year shows improvement in the overall efficiency and profitability of the business. 63 Net profit ratio(%)20.581715.7205101520252005-06 2006-07 2007-08 Years N P R Net profit ratio(%) [pic] Calculation of the Quick Ratio The quick ratio is calculated from balance sheet data. Current Assets - Inventory/Current Liabilities Example: If a business firm has $200 in current assets and $50 in inventory and $100 in current liabilities, the calculation is $200-$50/$100 = 1.50X. The "X" (times) part...
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...Project Report - Working Capital Management WORKING CAPITAL - Meaning of Working Capital Capital required for a business can be classified under two main categories via, 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments in these assets represent that part of firm’s capital which is blocked on permanent or fixed basis and is called fixed capital. Funds are also needed for short-term purposes for the purchase of raw material, payment of wages and other day – to- day expenses etc. These funds are known as working capital. In simple words, working capital refers to that part of the firm’s capital which is required for financing short- term or current assets such as cash, marketable securities, debtors & inventories. Funds, thus, invested in current assts keep revolving fast and are being constantly converted in to cash and this cash flows out again in exchange for other current assets. Hence, it is also known as revolving or circulating capital or short term capital. CONCEPT OF WORKING CAPITAL There are two concepts of working capital: 1. Gross working capital 2. Net working capital The gross working capital is the capital invested in the total current assets of the enterprises current assets...
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...Project Report - Working Capital Management WORKING CAPITAL - Meaning of Working Capital [pic][pic][pic][pic][pic]Capital required for a business can be classified under two main categories via, 1) Fixed Capital 2) Working Capital Every business needs funds for two purposes for its establishment and to carry out its day- to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as p&m, land, building, furniture, etc. Investments in these assets represent that part of firm’s capital which is blocked on permanent or fixed basis and is called fixed capital. Funds are also needed for short-term purposes for the purchase of raw material, payment of wages and other day – to- day expenses etc. [pic][pic][pic][pic][pic]These funds are known as working capital. In simple words, working capital refers to that part of the firm’s capital which is required for financing short- term or current assets such as cash, marketable securities, debtors & inventories. Funds, thus, invested in current assts keep revolving fast and are being constantly converted in to cash and this cash flows out again in exchange for other current assets. Hence, it is also known as revolving or circulating capital or short term capital. CONCEPT OF WORKING CAPITAL There are two concepts of working capital: 1. Gross working capital 2. Net working capital The gross working capital...
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...1. INTRODUCTION 1.1 origin of the report I started my internship on National Credit & Commerce Bank Limited –NCCBL Motijheel Branch on 19th September and ended on 19th December 2013. Throughout my internship period Fatima Satter, Lecturer of Eastern University was my academic supervisor and Md.Ayub Assistant Vice President &MD.Masum Manager Operation was my field supervisor. A study on a particular topic is a mandatory part of the internship program. I was authorized to make a study on the “performance evaluation on National Credit & Commerce Bank Limited”. In this whole study I tried to connect my own financial knowledge to the financial data of. I tried my level best to produce a quality study on “Performance evaluation on National Credit & Commerce Bank Limited”. 1.2 Problem Statement & Justification The financial performance evaluation on bank is unknown. The reason for the research was to do a pilot study and we wanted to identify bank’s financial data analysis or change in year by year. By this study Bank organization can make better decision to improve their growth and to compare the competitor they visualize their position. 1.3Limitations of the study It was a great opportunity for me to work in NCC Bank limited as an Intern and a make a study on the financial performance analysis of it but there were surely some limitations while making this study. They are- * Difficulty in accessing latest data of internal operations for data security...
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