Comparing Dell’s current assets to its current liabilities, it is determined that Dell has a 1.07 current ratio. Having a ratio over 2.0 indicates that a company is not investing its assets well and a ratio under 1 is considered a risk because it indicates the company doesn’t have enough cash to pay bills due over the next 12 months. Dell is within the parameters, but very close to the risk line. Looking at the acid test ratio it is determined that Dell placed low with a .75:1 ratio. This shows that Dell
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PROJECT 2 FINANCIAL RATIO ANALYSIS: 2 Purposes and considerations of ratio analysis 2 PHARMACEUTICAL INDUSTRY IN PAKISTAN 3 FEROZSONS LABORATORIES LIMITED 4 LIQUIDITY ANALYSIS RATIOS 4 Current Ratio: 4 Quick Ratio 5 Working Capital: 6 Absolute Liquid Ratio: 8 SOLVENCY RATIOS (Capital Structure Analysis Ratios) 9 Debt Ratio 9 Debt to Equity Ratio 9 Interest Coverage Ratio 10 Equity Ratio 12 Assets to Equity Ratios 13 PROFITABILITY ANALYSIS RATIOS: 14 GENERAL PROFITABILITY:
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Contents Executive Summary 2 Profitability Ratios 3 Profit Margin 3 Return on Assets 3 Return on Equity 3 Asset Utilization Ratios 3 Receivables Turnover 3 Average Collection Period 3 Inventory Turnover 3 Capital Asset Turnover 3 Total Asset Turnover 3 Liquidity Ratios 4 Current Ratio 4 Quick Ratio 4 Debt Utilization Ratios 4 Debt to Total Assets 4 Times Interest Earned 4 Conclusion and Recommendations 5 Appendix I: Ratios Analysis Results 6 Executive
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The evaluation will present financial ratios and a common-sized income statement. This analysis will provide insight of Coca Cola’s financial performance. Additionally, it will summarize an overall performance based on the ratios and financial statement. Coca Cola’s return on assets for year 2002 is 12% and 16% in 2003, as illustrated in Figure 1. The ratio increases over a year. The ratio is high and is assumed to be making good use of its assets (Loth, 2014). The net income for year 2002
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The Sharpe Ratio and the Information Ratio Sharpe Ratio and Information Ratio used to determine the risk-adjusted return of an investment portfolio. Sharpe Ratio The Sharpe Ratio introduced a method of assessing manager performance relative to risk taken. Sharpe Ratio centres on the use of a RFR, this places all mangers on a level playing field regardless of style. (Expected Portfolio Return – RFR) / Portfolio Standard Deviation Hypothetically, investors should always be able to invest
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Introduction Capital Asset Pricing model concentrates on the analysis of risk in relation to investment return which has long been the problems of classical economic approaches to investment decisions. The market model, which is a complement of the CAPM is considered as a useful theoretical tool to analyze the systematic relationship between the return from a particular security and the overall market return. Such an information provides a general idea on the average fluctuation of return from a security
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Liquidity Position Management of Assets Management of Debt Company's Profitability Market's View of Company Liquidity Ratios - use to investigate the relationship between a firm's current (shortterm) assets and current (short-term) liabilities. Current Ratio = Current Assets Current Liabilities Current Assets - Inventory Current Liabilities Cash + Marketable Securities Current Liabilities b) Quick Ratio (Acid-test) Cash Ratio = c) = (2) Asset Management Ratios - Use to evaluate how efficiently
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Wrap of key ratios You can find all the calculations in excel file nr. 1. 1. Debt-equity ratio: Total debt/total equity The debt-equity ratio indicates the relative proportion of shareholders equity and debt used to finance a company’s assets. You can also call it the “leverage-ratio”, because it says a lot about a company’s leverage (gearing) and risk. Example how to calculate the ratio: Total debt (2013): 1872+ 1332+12= 3204 Total equity (2013): 2228 Debt-equity ratio (2013): 3204/2228
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and is headquartered at Philadelphia, PA. Financial Ratio Analysis Firms release financials at their fiscal year end which includes an Income Statement, Balance Sheet, and Statement of Cash Flows. Financial ration analysis and forecasting is performed based on the numbers from these financial statements. Financial ratio analysis consists of a series of ratios that measures a firm’s liquidity, profitability, and capital structure. These ratios illustrate how effective and efficient a firm’s operations
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of stock reporting analysis, ratio analysis, duo point analysis, weekly return analysis and the analysis of cost of equity. The stock reporting analysis part of the project analyzed the stock selected with respect to the market Index. For the purpose of analysis the prices of both stock and index were downloaded for the period beginning 15-Jan-2009 till 15-Nov-2011. Ratio analysis had been used as the primary tool for evaluating the performance of the company. The ratio analysis helps in analyzing
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