LIQUIDITY RATIOS Interpretation of liquidity Ratios In order to survive, firms must be able to meet their short-term obligations—pay their creditors and repay their short-term debts. Thus, the liquidity of the firm is one measure of a firm's financial health. Two measures of liquidity are in common: Current ratio = current assets / current liabilities The main difference between the current ratio and the quick ratio is that the latter does not include inventories, while the former does.
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are many advantages when it decides to list on the ASX in an initial public offering. Here are some reasons. First of all, if the company listed on the ASX, it will provide entrance to a large equity capital market which is an unlisted company does not have. Therefore, into this market, the company’s equity capital will be rising because more business activities and more funding base to the activities will be expending. Thus the company will have more cash inflow in the future. What is more, share
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.......................................................................................... 2 Free cash flow and agency theory .................................................................................................. 3 Free cash flow to equity ................................................................................................................ 3 Free cash flow to the firm........................................................................................................
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Hoosier Castings Corporation | The Dynamics of Transitioning a Family Business | | TEAM 7 CLARK HAYS, NITHYA SUNDARAM & JADE CHEN TEAM 7 CLARK HAYS, NITHYA SUNDARAM & JADE CHEN 2/10/2014 2/10/2014 1. Burdens of Succession & Conflicts of Interest The major stakeholders for HCC are the DeWitt family members (David DeWitt 51%, Gregory DeWitt 15% and Mabel DeWitt 22%), Brendon Morris’s management team (Gregory DeWitt, Scott Rolston, Ryan Williams and Jennifer Nichols), the
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Case 1 – Debt Policy at UST Inc. 1) UST is the dominant producer of moist smokeless tobacco, or moist snuff, controlling approximately 77% of the market. UST has been one of the most profitable companies in corporate America with low debt compared to other companies in the tobacco industry and the company has been recognized by Forbes in terms of profitability by achieving return of capital of 92.1%. Price elasticity of its products is also important while evaluating. Smokeless tobacco industry
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liabilities. This makes the company stronger company in comparison to its competitors. Solvency and the company’s capital structure Debt to Equity Ratio The debts to equity ratio for the HP Company show a value of 1.65 for the financial year ending 2014. This shows that the HP Company had more equity (shareholders) financing than debt (creditors) financing. The Debt accrued from creditors is considered harmful in most cases due to the interest paid back on the borrowed principle (Gibson, 2001).
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..................................................................................................... 5 Valuation of the LBO................................................................................................................ 6 LBO Financing Structure......................................................................................................... 7 Ownership Retention ...........................................................................................................
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is used as a measure of profitability. Current assets to total assets ratio is used to compute the investment policy of working capital management and to determine financing policy of working capital management current liabilities to total assets ratio is used. Other variables that are used in this study are quick ratio, debt to equity ratio and size of the firms. Secondary data of 117 textile firms listed on Karachi stock exchange is taken for a period of six years i.e. 2005-2010 to calculate all
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Group! http://www.kgaction.com/financial-statement-analysis © The Kaplan Group! The Kaplan Group | Introduction to The Income Statement Hi. This is Dean Kaplan. The Kaplan Group is a commercial collection agency specializing in debt collection of large business to business claims. CREDIT MANAGER SEMINARS This video series introducing you to financial statement analysis is based on the dozens of training seminars I have given to credit industry groups organized by Dun &
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000 Profit margin = 0.0501 or 5.01% 2. Return on assets (investment) = net income/total assets Return on assets = $1,005,600 / 15,453,900 Return on assets = 0.0651 or 6.51% 3. Return on equity = net income/stockholder’s equity Return on equity = $1,005,600 / $9,466,820 Return on equity = 0.1062 or 10.62% Asset Utilization Ratios 4. Receivables Turnover = sales (credit)/receivables Receivables turnover = $20,077,000 / $1,534,680 Receivables turnover = 13.08
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