products at the least cost reaching the lowest rungs of the economic class of people in the country. We value our social obligations. * Square owe their shareholders and strive for protection of their capital as well as ensure highest return and growth of their assets. * Square works for best compensation to all the employees who constitute the back-bone of the management and operational strength of the company through a pay-package composing salary/wages, allowances, bonuses, profit participation
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Profitability: 8 Asset Turnover 10 Return on Investments: 13 Recommendations: 17 Liquidity Analysis * Working capital of the company has gradually decreased over the time period of 5 years, reason being the decrease in current assets and increase in liabilities. In other words we can say that the liabilities of the company are increasing rapidly as compared to assets. Higher is good for the company. Negative working capital shows that the liabilities exceed assets which are not good
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Financial ratio formulas Prepared by Pamela Peterson Drake 1. Operating cycle Inventory Inventory = Average day's cost of goods sold Cost of goods sold / 365 Number of days of inventory = Number of days of receivables = Number of days of payables = Accounts receivable Accounts receivable = Average day's sales on credit Sales on credit / 365 Accounts payable Accounts payable = Average day's purchases Purchases / 365 Note: Purchases = Operating cycle = Number
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continued expansion of the Company’s co-branded credit card program; and higher expenses associated with an increase in new warehouse openings year-over-year (a net of 41 and 27 warehouses opened in fiscal 2001 and 2000, respectively) where expense ratios to sales are typically higher than in more mature warehouses. Preopening expenses totaled 60$, or 0.18% of net sales, during fiscal 2001 and 42$, or 0.13% of net sales, during fiscal 2000. During fiscal 2001, the Company opened 41 new warehouses
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Using Financial Ratios to Assess Organizational Performance Michell Penix Dr. Ellis HSA 525 Health Financial Management November 28, 2014 Abstract The focus of this paper is to create a three year financial plan for Universal Health Service, Inc. using the financial statement previously generated. The financial ratio of profitability ratio is the ratio that most financial analysts would use to evaluate the financial condition of the company. The profitability ratio is also known as the
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Assessing a Company’s Future Financial Health SciTronics is a medical device company. This financial evaluation will cover the period from 2005 through December 31, 2008. The evaluation will include a review of the profitability, use of assets, and financial leverage metrics. This company appears to be financially healthy and has shown improvement in many of the metrics reviewed. The company has little long term debt, and adequate cash and owners’ equity balances. However, there
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Profitability ratios measure the company's use of its assets and control of its expenses to generate an acceptable rate of return Gross margin, Gross profit margin or Gross Profit Rate[7][8] [pic] OR [pic] Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS)[8][9] [pic] Note: Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT
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Current Ratio A liquidity ratio that measures a company's ability to pay short-term obligations. The Current Ratio formula is: [pic] The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if
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An important aspect of financial statements is using ratios for comparison purposes. The ability to analyze ratios allows stakeholders to compare against time periods or benchmark against other organizations. “The five major classes of financial statement ratios are common size, liquidity, solvency, efficiency, and profitability” (Finkler & Jones, p.117, 2007). This paper will summarize common financial ratios and will provide examples of ratio analysis from Hospital Corporation of America’s (HCA)
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financial activities such as utilization and procurement of the funds and finances of the enterprise. It implies the general management principles to locate the financial resources of the company. It involves making of investment decisions in current assets
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