Analysis Ratios | | Current Ratio | | | Current Assets | | Current Ratio = | ------------------------ | | | Current Liabilities | | | | Quick Ratio | | | Quick Assets | | Quick Ratio = | ---------------------- | | | Current Liabilities | | | | Quick Assets = Current Assets - Inventories | | Net Working Capital Ratio | | | Net Working Capital | | Net Working Capital Ratio = | -------------------------- | | | Total Assets | | |
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1. Using the Current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt). The current ratio is the result of Current Assets divided by Current Liabilities. Bankers and analysts use this ratio to understand a company's ability to pay short-term obligations, its liquidity. A company is generally judged "liquid" if its current ratio is 2-to-1 (though there are differences by industry). Example: Current Ratio=Current Assets Current Liabilities
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Ratios and Financial Planning at S&S Air, Inc. 1, Profitability Ratios 1. Profit margin = net income/sales Profit margin = $1,005,600 / $20,077,000 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
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Gary Shelton December 7, 2010 Abstract In this paper I will use the information obtained from the PepsiCo and Coca-Cola 2009 annual reports to determine financial information about these companies. I will answer questions about the companies assets and liabilities, profits, and if they can satisfy stockholders. What conclusions can you make about each company’s ability to pay current liabilities? A company’s liabilities are their legal debts and obligations. Liabilities can come up during
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[pic] Incorporated in 1981, Cherat Cement is a premier name in the filed of cement manufacturing. The Company is listed on Karachi, Lahore and Islamabad Stock Exchanges. The Factory, located near Nowshera, N.W.F.P, is built on land bordering the Cherat Hills, the Company’s source of high quality limestone. Cherat Cement has an ISO 9001:2000 certification and manufacturers high quality grey Portland cement using modern and sophisticated production facilities. It is also equipped with advanced production
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Ratio Equations Short-term Solvency Ratios | Current Ratio: | | Quick Ratio: | | Asset Management Ratios | Receivables Turnover: | | Days' Receivables: | | Inventory Turnover: | | Days' Inventory: | | Fixed Assets Turnover: | | Total Assets Turnover: | | Debt Management Ratios | Times Interest Earned (TIE) Ratio: | | Debt Ratio: | | Debt-Equity Ratio: | | Equity Multiplier: | | Profitability Ratio | Profit Margin: | | Return on Assets: | | Return
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we use different ratios to analyse the performance of this company during the July 2010 to June 2011. Performance ratios When measuring the profitability of 707isolated island Ltd, there are 3 ratios should be calculated: (From July2010 to June 2011) Return on equity =Net profit after tax/ Shareholder’s equity =$80,322/$128,471.00=62.52% The return on equity measures the rate of return on ownership’s equity of the common stock owners. Shareholder has earned a return of $62.52 cents profit
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statements. Ratio Analysis is a tool to evaluate company’s performance. This report takes into consideration 11 different ratios. It then analyses the results of the same. The report takes into consideration latest values of the financial statement, June 2013. The values are compared to previous performance of the company; that is December 2012. The ratios that are evaluated are as follows: * Current Ratio * Quick Ratio * Days’ Sales Outstanding Ratio * Fixed Asset Turnover
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The priceearnings ratio is: A) 1.67 to 1. B) 7.0 to 1. C) 9.0 to 1. D) 15.0 to 1. Feedback: The correct answer is C: Learning Objective 2 – Determine the priceearnings ratio as follows: Priceearnings ratio = Market price per share ÷ Earnings per share Priceearnings ratio = $180 ÷ $20 = 9.0 to 1 2 CORRECT The market price of the common stock of Tanner Company dropped from $50 to $42 per share. The dividend paid per share remained unchanged. The company's dividend payout ratio would: A) be unchanged
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following ratios: Return on Assets = Net Income / Total Assets Total Assets = Total Liabilities + Stockholders’ Equity = 1,228,313 + 176,413 = 1,404,726 Return on Assets = 58,333 / 1,404,726 Return on Assets = 4.15% Return on Stockholders’ Equity = Net Income / Stockholders’ Equity Return on Stockholders’ Equity = 58,333 / 176,413 Return on Stockholders’ Equity = 33.07% Debt to Assets Ratio = Total Debt / Total Assets Debt to Assets Ratio = 1,228,313 / 1,404,726 Debt to Assets Ratio = 87.44%
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