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 Accounts receivable Accounts receivable = Average day's sales on credit Sales on credit / 365 Number of days of inventory = Number of days of receivables = Number of days of payables = Accounts payable Accounts payable = Average day's purchases Purchases / 365 Note: Purchases = Cost of Ending Beginning + + goods sold inventory
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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 Accounts receivable Accounts receivable = Average day's sales on credit Sales on credit / 365 Number of days of inventory = Number of days of receivables = Number of days of payables = Accounts payable Accounts payable = Average day's purchases Purchases / 365 Note: Purchases = Cost of Ending Beginning + + goods sold inventory
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ASSIGNMENT Financial Management TOPIC Ratio Analysis on Shinepukur Ceramics Limited (2008-2010) Submitted to S. M. Arifuzzaman Course Instructor Financial Management Department of Accounting & Finance Submitted by Report by S. M. Benzir Ahmed Other Members Rawshon Maksuda Ahmed Rushed Imam Id: 00-00000-0 Id: 00-00000-0 Id: 00-00000-0 Sec: C Semester: Fall 2011-2012 MBA Program Department of Business Administration Submission Date: 22 December 2011 American International
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appropriate ratios for the years 2010 and 2011 Financial ratios can broadly be categorized as liquidity, efficiency and profitability. Where appropriate, we shall attempt to analyse the underlying financial statements in terms of the above categoris of ratios. The first category that we shall explore is the liquidity.These ratios measure the ability of a company to meet its obligations when they fall due, from the available resources. They include: i)Current ratio, The current ratio measures
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WEEK 2 CHAPTER 5 DISCUSSION QUESTION 10 What is the advantage of using a composite of indicators (such as the 10 leading indicators) over simply using an individual indicator? A composite indicator is an aggregated index comprising individual performance indicators. “It is a useful tool for conveying summary performance information and signaling policy priorities and are used widely in health care and other sectors, nationally and internationally.” (Jacobs, Smith, & Goddard, 2004) Some of the
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Introduction The report encapsulates a detailed assessment of the financial performance of the firms; Petronas Gas Berhad and Shell refining company which belongs to the gas and oil industry. An extensive evaluation of the financial statements of the year 2009 to 2011 has been incorporated. Company Profiles I. Petronas Gas Berhad (PGB) PGB was founded on 1983. TOD is responsible for the transmission and delivery of sales gas to customers in the power, industrial and commercial sectors
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2. Ratio Analysis……………………………………………………………………… 4 2.1 Short-term Solvency Ratio ……………………………………………….. 4 i. Current Ratio……………………………………………………………… 5 ii. Quick Ratio……………………………………………………………….. 6 2.2 Profitability Ratio…………………………………………………………… 6 i. Net profit margin………………………………………………………….. 6 ii. Gross profit margin………………………………………………………. 7 iii. Assets turnover…………………………………………………………… 8 iv. Turn on assets……………………………………………………………. 8 v. Return on
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1. Financial ratio analysis conducted by managers, shareholders, long term creditors, short term creditor’s emphasis on which ratio * Managers use financial statements to monitor measurements like debt leverage, costs, sales, assets and liabilities. Financial statements help managers assess achievement of financial goals. Gross Profit Margin : The gross profit margin is a measurement of a company's manufacturing and distribution efficiency during the production process. To calculate gross
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1-Compute all industry ratios presented for East Coast Yachts and COMPARE and comment on each ratio as compared to the Industry Median. (60pts) Industry ratios presented for East Coast Yachts Current ratio = $11,270,000 / $15,030,000 Current ratio = 0.75 times Quick ratio = ($11,270,000 – 4,720,000) / $15,030,000 Quick ratio = 0.44 times Total asset turnover = $128,700,000 / $83,550,000 Total asset turnover = 1.54 times Inventory turnover = $90,700,000 / $4,720,000 Inventory turnover
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; • Ratio Analysis • Cash Flow Analysis • Common Size Analysis Ratio Analysis Investopedia describes ratio analysis as , ‘A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements’. Ratio Analysis can be viewed along the following lines; • Liquidity Ratios • Profitability ratios • Debt ratios • Operating performance ratios • Cash flow indicator ratios • Investment Valuation ratios In reviewing the liquidity ratios, the current
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