CHAPTER I 1.1 BACKGROUND Doing an analysis of the financial statements of a company is essential before we invest in a certain company. We must know the level of profitability (profit) and the level of risk or the soundness of the company beforehand. Ratio analysis is a useful management tool that will improve our understanding of financial results and trends over time, and provide key indicators of organizational performance. The financial statements are prepared properly and accurately to
Words: 4179 - Pages: 17
the managing their assets liabilities and then I have shown their liquidity analysis through the external analysis to assess their recent market condition. The whole analysis part is undergone from 2004 to 2008. In this analysis part I have analyzed different ratio related to liquidity management so that liquidity position of CBL can easily be assessed. Then I have shown the maturity model from 2004 to 2008. In this analysis CBL’s weighted average assets and liabilities are compared. Here we can see
Words: 8580 - Pages: 35
Ratios and Formulas in Customer Financial Analysis Financial statement analysis is a judgmental process. One of the primary objectives is identification of major changes in trends, and relationships and the investigation of the reasons underlying those changes. The judgment process can be improved by experience and the use of analytical tools. Probably the most widely used financial analysis technique is ratio analysis, the analysis of relationships between two or more line items on the financial
Words: 2431 - Pages: 10
March 25, 2013 RE: Financial Statement Analysis and Findings 2008 The purpose of this memo is to explain the findings of the financial statement analysis for 2008. This memo is going to offer advice for any significant decreases in profits or increases in liabilities. The company is showing liquidity is up for 2008. The current ratio shows that we can pay assets 5.99 times for every one current liability. This is an increase of 62% over 2007. The most significant liquidity ratio decrease for 2008
Words: 715 - Pages: 3
Competition Bikes Incorporation Financial and Operational Analysis Competition Bikes Incorporation is a manufacturer of sports cycles and is a famous brand among professional cyclists. This report presents a financial and operational analysis for Competitors Bikes Incorporation for the past three financial years, which include year 6, 7 and 8. The financial analysis presented in this report includes horizontal and vertical analysis of the three years’ income statement and balance sheet of Competition
Words: 4193 - Pages: 17
5 HND Diploma in Business (QCF) | F/601/0864 QCF level: 4Unit 10 Financial Accounting and Reporting | Student name NEU Student Number / BTEC Registration Number | | | | Assessor name(s) | Noel Farquharson | Le Quang Dung | Date issued | Submission deadline (for both hard copy and Turnitin) | May 7th 2015 | May 22nd 2015 | | | Assignment title | Interpreting financial statement | Student to indicate clearly on the Evidence (Page
Words: 1596 - Pages: 7
Ltd: A case study for Financial Statement Analysis Peter Wells* and Anna Wright. 12 February 2004 Not to be used or cited without the permission of the authors * Corresponding author: School of Accounting, University of Technology, Sydney, Broadway NSW 2007 Australia Tel: 61-2-9514 5295 Fax: 61-2-9514 5515 Email: peter.wells@uts.edu.au 6. Financial Analysis The aim of financial analysis is to present and summarise information contained in the financial statements in a manner
Words: 2857 - Pages: 12
to make the financial comparison of two major companies, i.e., DLF Ltd and Jaiprakash Associates. The analysis of each company’s performance, profit and loss statement, balance sheet and financial statement ratios are prepared for the period 2009 to 2013. Financial Ratio Analysis 1. Liquidity Ratio Current Ratio Except for the year 2010, DLF has maintained its current ratio at around 2.This figure is better in comparison to Jaiprakash Associates which maintained its current ratio close to 1.3
Words: 2084 - Pages: 9
as a shareholder in Toll Holdings Limited. The scope of the analysis will be limited to the financial statements of the Company for the years ended June 30, 2013, 2012, 2011, 2010, and 2009 and the 2013 Annual Report. Unless explicitly stated, it is assumed that any financial trends noted during the five above-mentioned years will continue. This assumption of general stability is the most significant limitation of the analysis. The analysis will focus on the general profitability, liquidity, asset
Words: 744 - Pages: 3
Section – (B) Group 20 Financial Analysis of NESTLE VS BRITANNIA FOOD PROCESSING INDUSTRY By: HIMANSHU BHATT (P35133) SOURAV ANAND(P35189) SRAYANSI WORAH(P35190) SWARNIM SINGH(P35199) VENKATH SAMPATH DORA(P35205) Executive Summary The food processing industry is one of the most important sectors in India considering its linkage to agriculture and food consumption in an economy of a billion plus population. The food processing industry is also
Words: 4099 - Pages: 17