Buffet Ratio Analysis Current Ratio Interpretation: Traditionally, a company with a ratio over 1.0 is considered sound; however, Warren Buffet feels that the current ratio is practically useless in determining whether or not a company has a durable competitive advantage. His theory suggests that companies with strong economies do not need high liquidity. Apple’s Current Ratio for 2012, in billions | Current Assets | $ 57,653 | Current Liabilities | $ 38,542 | Ratio | 1.496 | Earnings
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Growth Fund. Rest of the three funds were merged into another single and named as ABAMCO Stock Market Fund. So far as the Lot-B is concerned, it comprised of 13 ICP funds, for all of these thirteen funds, the Management Right was acquired by PICIC Asset Management Company Limited. All of these thirteen funds were merged into a single closed-end fund which was named as “PICIC Investment Fund”. Later on the 26th fund of ICP (ICP-SEMF)
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on the general profitability, liquidity, asset efficiency and gearing of the Company without relying too heavily on any one financial ratio or class of financial ratios. Since this analysis is focused on the risks and opportunities of a common shareholder, more weight will be given to the profitability and asset efficiency ratios as these ratios are better indicators of whether the Company’s stock will outperform the market than liquidity and gearing ratios. The Company is not overly leveraged; therefore
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concurrent liquidity risk management (LRM) along with a comparative analysis between conventional and Islamic banks of Bangladesh. The researcher has tried to investigate the significance of firm's size, net working capital, return on equity, capital adequacy and return on assets on liquidity Risk Management in case of Conventional and Islamic banks of Bangladesh. Secondary data had been the major stimulus of the research covering five year 20062010. For Islamic banks, a model estimation to predict
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|Comparative Financial Statement ( Balance Sheet) | |Apex Tannery Limited | |As of 31st December, 1994 and 1995 | | |December
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on earnings used to reward investors and to reinvest in productive assets that will generate future earnings. The interdependence of a firm’s value and its earnings has led to the theory of profit maximization (Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzy Byrne, Judy Oliver, 2012). The firm seeks optimum current and future earnings. This ensures that the long-run return for investors is maximized through increased returns and the firm’s appreciating stock value. To further illustrate the
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theoretical models 10 1. Theorem review 10 1.1. Modigliani- Miller theorem review 10 1.2. Agency theory 12 1.3. Trade-off theory 14 1.4 Pecking Order Theory 19 1.5 Market-timing theory 20 2. Variable review 22 2.1. Return on Asset and Return on Equity 22 2.2. Capital structure 23 3. Empirical studies 24 3.1. Relationship between capital structure and firm performance 24 3.2. Empirical studies of relationship between determinants of capital structure and profitability
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USB RATIOS 2013 2012 2011 Return on Equity =5,732/41,113=13.9% =5,490/38,998=14.1% Return on Assets =5,732/364,021=1.57% =5,490/353,855=1.55% Net Interest Margin 1681/12285=13.7% 2138/12883=17% 2516/12639=20% Net non-interest margin =5,732/9,104=63% =5,490/9,608=57% Net profit margin 5732/364,021=1.57% 5490/353855=1.55% Net operating margin .0157/364,021=0% .0155/353855=0% Tax Mgmt. efficiency ratio 5,732/9,104=63% =5,490/9608=57% Expense Control Efficiency ratio 10,274/9,104=1
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Financial Ratios Financial ratios are essential tools for fundamental analysis, which determines the value of a company using both qualitative and quantitative methods. Companies collect numerical data such as sales and inventory every day; the calculation of financial ratios allows the company, its investors, and banks to see through the masses of data and estimate the company's intrinsic value (Loth, 2012). Types of financial ratios include liquidity ratios, profitability indicator ratios, debt ratios
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Current Assets 9.24% Total Current Assets 40.36% Fixed Assets 0.00% Other Non-Current Assets 35.86% Total Assets 100.00% Accounts Payable 8.74% Loans/Notes Payable 4.30% Other Current Liabilities 10.56% Total Current Liabilities 23.60% Other Long-Term Liabilities 36.53% Total Liabilities 60.13% Net Worth 39.87% Total Liabilities Net Worth 100.00% Industry Financial Ratios Motor vehicles and parts Corp Average Financial Ratios 2008 Return on Sales -1.62% Return on Assets
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