………………………………………………………..……………3 1.1 Current Ratio 4 1.2 Quick Acid Test 5 2.0 Debt Ratio…..…………………………………………………………………………………………………………………..………9 2.1 Debt to Equity Ratio 6 2.2 Total Debt to Equity Ratio 6 2.3 Debt to Total Assets Ratio 7 2.4 Capital Gearing Ratio 8 2.5 Proprietors funds to total assets 8 2.6 Long term debt-total capitalization 9 2.7 P-E ratio 9 3.0 Coverage Ratio…..……………….…………………………………………………………………………………………………14 3.1 Interest coverage ratio 11 3.2 Dividend coverage ratio 11 3.3 Debt-Service
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term”credit” suggests that it is a a financial activity, the firm has control on the conditions it sets its customers. More importantly, the firm will vary those conditions in order to yield best overall ROE. You can see here how the aggregation of assets and activities within the firm is conducive to overall firm value as being greater than the sum of its parts. Hence goodwill. Thus some firms include credit to customers within the value chain portion that the firm that they purposefully occupy –
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1. The balance sheet is made up of what five key components: A. fixed assets, current liabilities, long term debt, tangible current assets and shareholders equity B. intangible fixed assets, current liabilities, long term debt, net income and current assets C. fixed assets, long term debt, current assets, current liabilities and shareholders equity D. current assets, fixed assets, long term debt, shareholders equity and retained earnings Difficulty: Medium Learning
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instruments to which the entity is exposed during the period and at the reporting date, and how the entity manages those risks. 2. The principles in this IFRS complement the principles for recognising, measuring and presenting financial assets and financial liabilities in IAS 32 Financial Instruments: Presentation and IAS 39 Financial Instruments: Recognition and Measurement. Scope 3. This IFRS shall be applied by all entities to all types of financial instruments, except: (a) those
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Interest | 362,000 | Taxable Income | $ 1,676,000 | Taxes (40%) | 670,400 | Net Income | $ 1,005,600 | | | Dividends | $205,000 | Add. To retained earnings | 800,600 | | | S&S Air, Inc.2009 Balance Sheet. | Assets | | Liabilities &
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include that all of the management and decisions rest with one individual, all of the profits belong the business owner and the owner can utilize these profits as deemed necessary without consulting any other party and that all of the income is taxed as personal, so the owner only has to worry about one tax liability. Along with the advantages there are also several disadvantages these can include limited financial and professional resources along with unlimited liability for debts related to the
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|13 | |Key Terms and Concepts |20 | |Financial Statements as a Management Tool
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A PROJECT REPORT On “WORKING CAPITAL MANAGEMENT IN HCL” UNDER THE GUIDANCE OF: KSHITIJ MATHUR SUBMITTED BY: ARJUN SHARMA ROLL NO.: 1121000935 Specialization: Finance INSTITUTE OF MANAGEMENT TECHNOLOGY (CENTRE FOR DISTANCE LEARNING) GHAZIABAD PROFORMA (TO BE SENT ALONG WITH PROJECT REPORT) Name _________________________________ (In Block Letters) Enroll. No. ___________________ Choice of Venue
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the liquidity ratios, the current ratio, also known as working capital ratio, is used to calculate the proportion of current assets that is available to cover current liabilities, the formula can be calculated as Current Ratio = Current Assets Current Liabilities Its limitation however rests in the fact that in assessing liquidity, it assumes all the company’s assets will be liquidated to cover this and no indication has been given to the amount of time required to liquidate these current
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C’s Character Expected reaction when things get rough Capacity Ability to generate future cash flow for loan service Conditions The future of the business and the economy Capital The balance sheet Collateral Tangible assets including personal guarantees Estimating the Lender’s Expected Loss Expected loss = Probability of default x Amount of loss given default The Probability of Default A function of the underlying business risks (based upon our business
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