2009 FINANCIAL RATIO ANALYSIS ABHIJIT SAMANTA I N T E R N A T I O N A L S C H O O L O F B U S I N E S S & M E D I A ; K O L K A T A P a g e | 2 FINANCIAL RATIO ANALYSIS OF TATA STEEL 1. Liquidity Ratios:- Liquidity Ratios measures the ability of the firm to meet its short term obligations. They also reflect the firm’s ability to meet financial contingencies that might arise. (A) Current Ratio: - This ratio indicates the firm’s ability
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SUBJECT: Evaluation of Financial Ratios DATE: February 1st, 2013 Company G has requested an evaluation to assess the financial stability of the business based on their financial statements from 2011 and 2012. As part of the analysis standard financial ratios were used to assess the condition of various aspects of the company. These ratios were used to compare the condition of Company G as compared to industry averages. The following is a summary of the ratios used, the results of the financial
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Evaluating Wal-Mart's Financial Health Elizabeth ACC/230 October 16, 2011 Tarsha Bowie Evaluating Wal-Mart's Financial Health Wal-Mart is a big multi-billion dollar company. There are millions of stores all over the world and they generate billions of dollars in sales, but just because a company is a multi-billion dollar company does not mean their financial health is all that great. So the purpose of this paper is to break down the financials of Wal-Mart and analyze the financial
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financial management is the creation of shareholder value. According to Ehrhard and Bringham (2003), the value of a business based on the going concern expectation is the present value of all the expected future cash flows to be generated by the assets, discounted at the company’s weighted average cost of capital (WACC). From this it can be seen that the WACC has a direct impact on the value of a business. (Johannes and Dhanraj, 2007). The choice between debt and equity aims to find the right capital
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PART-I APEX SPINNING MILLS LTD. 1.1 Company Overview: Apex Spinning & Knitting Mills Limited is a complete vertically integrated factory, where yarn to finished garment is produced under one roof. The factory produces and exports some 1.3 million pieces of garments every month to North America, Europe and the South East Asia. Apex Textile Complex consists of four 100% export oriented textile and Garment manufacturing enterprises under the management of Apex Holdings Limited (AHL). Over the
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provided * North Branch 600,000 * South Branch 550,000 * Assumptions * The balances in asset and equity accounts at year-end approximate the average balances during the period. * Income tax rate was 30% Simplified and Condensed Income Statements Tasks Using appropriate financial ratios, explain which branch is: * A. More Profitable * B. Less risky in terms of short-term liquidity? *
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amount of retained earnings B) decrease each year by the amount of retained earnings minus depreciation on fixed assets C) increase each year by the amount of retained earnings D) increase each year by the amount of retained earnings plus depreciation on fixed assets 2. A firm has a ROE of 20% and a market-to-book ratio of 2.38. Its P/E ratio is __________. A) 8.40 B) 11.90 C) 17.62 D) 47.60 3. Rose Hill
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Financial Management ------------------------------------------------- BUS508 Dr. Etido Akpan, Professor Financial Management Financial Statements and annual reports are crucial tools for evaluating a business and deciding whether or not to invest in that company. Google and Microsoft are two major corporations that lead Internet technology and information retrieval. Both corporations list their financial information on their respective websites (www.google.com and www.microsoft.com) on
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Financial Ratio Analysis It is difficult to infer organizational performance from one or two simple numbers. Nevertheless, in practice a number of different ratios are often calculated in strategic planning endeavors and, taken as a whole and with some caution, these ratios do provide some information about the relative performance of an organization. In particular, a careful analysis of a combination of these ratios may help you to distinguish between firms that will eventually fail and those
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Accounting Formulas Profitability ratios * Gross Margin Ratio Gross Profit/Sales * Operating Income Ratio Sustainable Operating Income/Sales * R&D Expense Percent R&D/Sales * SGA Expense Percent SGA/Sales * Net Margin Ratio Sustainable Net Income/Sales * Effective Tax Rate Income Tax Provision/Income Before Taxes * Return on Total Assets Sustainable Net Income/Total Assets * Return on Equity Sustainable Net Income/Shareholders’ Equity
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