a liquidity perspective, an investor must realize that both current and quick ratios for Unilever decreased on a year over year comparison (2012, 2013, 2014). Assets during this period remained almost unchanged but liabilities grew over the designated years. This is due to bond maturity as stated in the 2014 annual report, but still a flag as the decrease has been YOY. Efficiency According to the efficiency ratios I calculated, Unilever shifted its strategy towards a less frequent collection
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Profitability ratios Profitability ratios measure the company's use of its assets and control of its expenses to generate an acceptable rate of return Gross profit margin or Gross Profit Rate OR Operating Income Margin, Operating profit margin or Return on sales (ROS) Note: Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit.[10] This is true if the firm has no non-operating income
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FINANCIAL RATIO ANALYSIS OF UNITED COMMERCIAL BANK LIMITED INTERNSHIP REPORT ON FINANCIAL RATIO ANALYSIS OF UNITED COMMERCIAL BANK LIMITED SUBMITTED TO M R M AHMUDUL HAQ ASSISTANT PROFESSOR BRAC B USINESS SCHOOL BRAC UNIVERSITY SUBMITTED BY: ASHIQUR RAHMAN ID-08104154 BRAC B USINESS SCHOOL DATE OF SUBMISSION M AY 24, 2012 LETTER OF TRANSMITTAL 24th May 2012 Mr Mahmudul Haq Assistant Professor BRAC Business School BRAC University Subject: Submission of Internship Report. Dear Sir, With due
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PROCEDURES—RATIO ANALYSIS FORM The auditor can use this form to document the performance and evaluation of ratio analysis in connection with analytical procedures performed in an audit. The form is only a guide and is not a substitute for professional judgment. The form may be modified by adding or omitting certain ratio analysis. CLIENT NAME: | Pinnacle Manufacturing Company | DATE OF FINANCIAL STATEMENTS: | Year Ended December 31 of 2007, 2008, 2009 | LIQUIDITY RATIOS 2007
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CHAPTER 9 Ratio Analysis Introduction The analysis of the financial statements and interpretations of financial results of a particular period of operations with the help of 'ratio' is termed as "ratio analysis." Ratio analysis used to determine the financial soundness of a business concern. Alexander Wall designed a system of ratio analysis and presented it in useful form in the year 1909. Meaning and Definition The term 'ratio' refers to the mathematical relationship between any two inter-related
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Interpretation of Financial Statements (Using UK GAAP) 1 Profitability ratios Return on capital employed (ROCE) Capital employed is normally measured as fixed assets plus current assets less current liabilities and represents the long–term investment in the business, or owners’ capital plus long–term liabilities. Return on capital employed is frequently regarded as the best measure of profitability. ROCE = Profit before interest and taxation (PBIT) Capital employed × 100% Note that
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RATIO ANALYSIS Meaning and definition of ratio analysis: Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables. Significance or Importance of ratio analysis: • It helps in evaluating the
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CanGo’s efficiency ratio. The efficiency ratio is calculated by dividing the net sales by the average accounts receivable. The calculation of this ratio is important because it measures CanGo’s efficiency on collecting on credit and collection policies. With this ratio the lower the better because it shows the expenses are low whereas the income and earnings are high. When calculating CanGo’s efficiency ratio: $33,000,000/$50,000,000=.66 or 66%. Generally an efficiency ratio of 50% or less is
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Ratio Analysis Financial Ratio Analysis cannot be used in a vacuum. It must be interpreted with the help of other outside information; specifically benchmarks on which to evaluate the results. Often a company’s financial ratios are benchmarked against ratios of peers and competitors; industry averages; and/or its own historical ratios. Even these comparisons need to be evaluated in the context of the company’s strategy, operational plan, and current economic conditions; all of which can alter the
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Analysis and Analytical Issues QUESTIONS 3.1 Profitability Ratios Questions 1 and 2 are based on the following information. The financial statements for Dividendosaurus, Inc., for the current year are as follows: Balance Sheet Cash Accounts receivable Inventory Net fixed assets Total $100 200 50 600 $950 Accounts payable Long-term debt Capital stock Retained earnings Total $140 300 260 250 $950 1. Dividendosaurus has return on assets of A. 21.1% B. 39.2% C. 42.1% D. 45.3% 2. Dividendosaurus
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