TABLE OF CONTENTS | | | | | | Introduction _____________________________________________ | 3 | | Company Overview_______________________________________ | 3 | | | Financial Ratio Analysis____________________________________ | 4 | 1. Liquidity Ratios________________________________________ | 5 | 1.1 Current Ratio_______________________________________ | 5 | 1.2 Quick Ratio_________________________________________ | 6 | 1.3 Working Capital_____________________________________
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presented report is aimed to present understanding and interpretation of different financial ratios in the context of judging the financial performance of an organization. The financial ratio revealed on the basis of different financial records and figures for a particular organization, indicates the existing status of the company. In addition to this, there are a number of different types of financial ratios for a company which are aimed to show different aspects of financial performance of the organization
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financial ratios from your text, course materials, and/or Web resources. Answer the following questions: What do they tell you about a firm? Why is it important for a bank to understand these financial ratios? Why is it important for an investor to understand these financial ratios? Financial ratios are important when it comes to understanding the financial health of a company. My colleagues and I work for a financial service and are discussing the merits of the various financial ratios. We are
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of Contents Financial Ratio 4 Return on Equity 4 Return on Assets 5 Profit Margin 7 Common Equity Leverage 8 Capital Structure Leverage 9 Debt to Equity 10 Long Term Debt to Total Assets 11 Current Ratio 12 Quick Ratio 13 Interest Coverage 14 A/P Turnover 15 A/R Turnover 16 Inventory Turnover 17 Fixed Asset Turnover 18 Asset Turnover 19 Earnings per Share Ratios 20 Price/Earnings Ratio 21 Dividend Yield Ratio 22 Stock Price Return 23 Evaluation for The Company
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Disney Financial Performance Current Ratio The current ration concludes the liquidity of the company. A company’s current assets mainly consist of cash, accounts receivable, and etc. Current liabilities are primarily account payable, accumulated income taxes, existing maturities of long-term debt, and other accumulated expenses payable within one year. When the current ratio is greater than the industry normal, this concludes the presence of redundant assets. Whereas, on the other hand, lower than
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Control, Shirking Current Assets – Current Liabilities = Net working capital (Current = less than a year) Financial leverage: use of debt to acquire assets Average tax rate: total taxes paid / total taxable income. Marginal tax rate: amount of tax payable on the next dollar earned. Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Shareholders Cash Flow from Assets = Operating Cash Flow (EBIT + Dep - Tax) – Net Capital Spending (Ending Net Fixed Assets – Beginning NFA + Dep) – Change
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Corporation Ratio Analysis The attached report shows the overall financial trends of Morgan Corporation from December 31, 2010 and December 31, 2011. These ratio results will show investors how we are working to improve our products in 2012 and showcase the the potential of our firm by exploring the turnover ratios encompassed in our profit margin, current ratio, receivable turnover, inventory turnover, and return on assets. Generally speaking, profitability ratios (Return on Assets) provide information
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A liquidity ratio is a ratio that shows the relationship of a firm’s cash and other current assets to its current liabilities. The current ratio is found by dividing current assets by current liabilities. It indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future. The quick, or acid test, ratio is found by taking current assets less inventories and then dividing by current liabilities. b. Asset management ratios are a set of
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Corporation Berhad 2009 Current assets / current liabilities = current ratio = 4668543 / 3721584 = 1.25 2010 Current assets / current liabilities = current ratio = 4594500 / 3845743 = 1.19 The current ratio from 2009 to 2010 decrease but the current asset can cover the current liabilities. The current asset are include stock and therefore the company cannot reliable depends on quick ratio. 2009 (Current assets – stock) / current liabilities = quick ratio = (4668543 – 483008) / 3721584
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are financial ratios. A ratio is to standardize the measures on financial statements to enable comparison across time and companies of different sizes. Types of financial ratios: 1. Liquidity Ratios – the ability to meet the current period obligation, measures the ability to repay debt in the short run. Rule of thumb: the current ratio should be at least 2:1 (current ratio = current assets/ current liabilities, quick ratio = current assets – inventory/current liabilities, cash ratio = cash/current
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