following ratios according to a ratio category (liquidity ratio, asset management ratio, debt management ratio, profitability ratio, or market value ratio). a. Current ratio – liquidity ratio b. Inventory turnover ratio – asset management ratio c. Return on assets – profitability ratio d. Accounts payable period – asset management ratio e. Times interest earned – debt management ratio f. Capital intensity ratio – asset management ratio g. Equity multiplier – debt management ratio h. Basic
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Westwood used FIFO. Additionally, comparison of three key ratios indicated relative differences between these two competitors: gross margin percentage, pre-tax return on sales, and pre-tax return on assets. And calculations of these three ratios are below: Ratio | Calculation | Gross margin percentage | Gross margin/ Sales | Pre-tax return on sales | Income before tax/Sales | Pre-tax return on assets | Income before tax/ Total assets | Based on the two different methods they used to
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Sales Growth: Boeing sales have increased from 64,306mil in 2010 to 90,70mil in 2014 which represents a 36.5% increase over the last 5 years. Profitability Ratios:- • Boeing’s profit as a percentage of sales in 2014 was 6 % while it was 5.14% in 2010 which represents a slight increase of 0.86% from 2010. • The improvement in Profitability resulted from a signification decrease in operating expenses from 11.65% in 2010 to 7.20% in 2015 as percentage of sales. An increase took place in the cost
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The balance sheet shows the financial position of an organisation at a given point in time. The balance sheet consists of assets, liabilities and equity. An asset is something that is controlled by the organisation that will generate future economic benefits. A liability is an obligation to transfer economic benefits always from the business to third parties other than the owners of the business such as suppliers or for loans. Equity is the relationship between the shareholders, who are the owners
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Introduction – This assignment is done on the basis of finding of ratio of three companies and interpreting the ratios of the three companies of last five years. Financial ratio analysis is the selection, evaluation and interpretation of financial data in easier ways to understand ratios which have been identified as critical indicators of financial performance of the business and can be used for strategy and decision making. Basically financial analysis is popularly used to compare a firm’s financial
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National Tubes limited Ratio Analysis-2011 Liquidity ratio 1) Current ratio=current asset/current liabilities =TK 862,151,015/TK 447,752,592 =1.93:1 2) Acid test ratio= (current asset-Stock of goods sold)/current liabilities = (TK 862,151,015-TK 328,950,804)/TK 447,752,592 =1.19:1 3) Working capital=Current assets-current liabilities =TK 862,151
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PRINCIPLES OF ACCOUNTING INDIVIDUAL ASSIGNMENT Name: Bùi Xuân Minh Roll ID: 00241 Analyzing 2010 annual financial reports of PVFC Company Entity’s full name Petro Vietnam Fertilizer and Chemicals Company (PVFCCo.) Principal activities The principal activities of the Corporation and its subsidiaries are to produce and do business in fertilizer, liquid ammonia, industrial gas, other chemicals; technical services relating to production and trading of fertilizer and other related chemicals
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for you to see your work. You’ll need to do some number crunching to complete your annual report analysis. The Big Calculating Tool, located on your CD, can save you a great deal of time and make the number crunching nearly painless. Every ratio and calculation for the book is included in the Big Calculating Tool. You’ll have more time for analysis if you use the Big Calculating Tool. Table of Contents Questions for Chapter 2 4 Question 2.0 – What do you want to learn about company
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MULTIPLE CHOICE 1. The balance sheet reports: |a. |the assets, liabilities, gains, and losses for a period of time | |b. |the changes in assets, liabilities, and equity for a period of time | |c. |the assets, expenses, and liabilities as of a certain date | |d. |the probable future benefits, probable future sacrifices
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312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds through additional notes payable and use them to increase inventory. How much can Hindelang's short-term debt (notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Hindelang has raised the maximum amount of short-term funds? 2–2. W. F. Bailey Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory
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