What is ratio analysis? The Balance Sheet and the Statement of Income are essential, but they are only the starting point for successful financial management. Apply Ratio Analysis to Financial Statements to analyze the success, failure, and progress of your business. Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with
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Statement Analysis Summit Power Limited Ratios Analysis (Consolidated) 2011-2010 Liquidity Ratio. Current Ratio= Current assetCurrent Liabilities = TK 2,939,691,632TK 2,235,018,908 = 1.32:1 Current Ratio (2010) =TK 2,285,232,236TK 3,832,145,504=0.60:1 Quick ratio=CA-InventoriesCL = TK 2,939,691,632-TK 651,338,649TK 2,235,018,908 = 1.02:1 Quick ratio (2010) =TK 2,285,232,236-280,071,0933,832,145,504= 0.52:1 Comment: By analysis the liquidity ratio here we can see that company improving
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2012. Current Ratio The current ratio is an indication of a company’s ability to pay current liabilities with current assets. The formula for calculating the current ratio is current assets divided by current liabilities. DHG has a current ratio of 1.69 for year 11. When compared to the current ratio of 1.83 in year 10 and industry data quartiles of 3.1, 2.1, and 1.4 this ratio appears to be decreasing and indicates a weakness. Management should investigate ways to increase assets and reduce liabilities
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current ratios. We will discuss the best company to invest in based on the ratios described. Other non-financial elements that may help investors make a decision will also be discussed. Current ratios describe the relationship between the current assets and their liquidity and the current liabilities a company holds (Loth, R., 2010). This ratio is used as a way to evaluate a company’s ability to pay their current debt (their liabilities). In calculating the current ratio, the current
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Additional Funds Needed (AFN) | (Assets tied to sales / Sales at past year)(Change in Sales) - (Liabilities tied to sales)(Change in Sales) - (Net Income)(Retention Ratio) | AFN for Sustainable Growth | (Assets tied to sales / Sales at past year)(Change in Sales) - (Net Income)(Retention Ratio) | APR (Calculate from EAR) | Nom ( EAR , Number of Compounding Periods) | Average collection period | 365 / Receivables Turnover | Average Daily Float | (Delay per period)(Amount of check) / Number
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[pic] Al-Azhar University - Gaza Faculty of Economics and Administrative Sciences Business Administration Department Financial Analysis For : [pic] Prepared by: Ahmed Al-Saqqa Ibrahem Al-Shanti Under the supervision of: Mr.. Nizar Naim 2010-2011 Introduction Microsoft Corporation is one of the largest companies in the field of software and information technology, noted in recent years, the performance
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Accounting Assessment 2: Ratio Analysis Report CONTENTS Executive Summary …………………………………… 3 Profitability Measures …………………………………. 4 Efficiency Measures …………………………………… 5 Liquidity Measures …………………………………….. 6 Financial Gearing (Leverage) Measures ……………….. 7 Conclusion/Recommendation …………………………... 8 References ………………………………………………. 9 Appendix: ……………………………………………….. 10 FORMULAS, CALCULATIONS AND LINE GRAPHS FOR ACCOUNTING 1: Ratio Analysis Report Executive Summary
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convenience stores, dollar stores, concessionaires, department stores, and natural food stores. The company was founded in 1893 and is based in Hershey, Pennsylvania. Tootsie Roll Industries Ratios Hershey Foods Corporation Ratios Interpretation and Comparison between the two companies' ratios Earnings per share serves as an indicator of a company's profitability. The EPS is a good measure of profitability and when compared with EPS of similar companies and it gives a view of the comparative
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Horizontal, Vertical and Ratio analysis: HORIZONTAL AND VERTICAL ANALYSIS WORKING CAPITAL ANALYSIS BALANCE SHEET: GOLDEN LAWS 1. Non-current assets should be financed by equity Equity – Non-current assets = … 2. Non-current assets should be financed bay equity + long-term liabilities Equity + long-term liabilities – non-current assets = … 3. Current assets should be financed by current liabilities Current liabilities – Current assets = … INVESTMENT RATIOS Earning per ordinary
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the comparison above, we can conclude that Starfire is able to get more operating income relative to its revenues. However, that’s only a little perspective of its financial situation. To make more accurate analysis, we should still consider other ratios. In the second step, in order to measure its profitability, we take Dupont Analysis as a refrence and make detailed analysis step by step. Since taxes are ignored in this case, thus
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