The purpose of this report is to analyse a number of business ratios from a business financial terms. We presented information about the ROA, current ratio, PE ratio etc. and provided how Tesla’s performance was in the share market. These data would be useful for investors when they make investment decisions, and it is also important to Tesla’s managements for corporation development in the future. It is recommended that it is difficult to evaluate precisely on the share price due to the incompletely
Although we do not have an industry average to compare this debt ratio to, this debt ratio is very high. Examining Cartwright Lumber Company’s current ratio and quick ratio in combination with their debt ratio, the firm’s financial strength has weakened. The Current Ratio is approximately 1.35X and the Quick Ratio is 0.55X. These ratios are very low, raising a red flag that this company may have difficulties paying off debts. Furthermore, the company
When analyzing the Pinnacle Manufacturing Financial Statements there multiple concerns that should be further investigated that I will explain in this memo. When identifying the year to year change and using financial ratios found on A6, there are a couple of concerns that need to be identified. The fact that the operating expense from fluctuated from an increase $892,861 from 2009 to 2010 and then decreased by $956,231 from 2010 to 2011 should be raised in question. At the same time Operating expenses
October 8, 2009 To: Audit Team Anderson, Olds, and Watershed Re: Analytical Procedures Audit Risks: After analyzing the financial statements of Peach Blossom Cologne Company, we have concluded through the change analysis the following accounts contain some measure of audit risk. In analyzing the change analysis we concluded on threshold amounts of any change exceeding 15% and above the amount of $5000. If both criteria were met, a business reason and possible client error reason were provided
to Olowe (1997), Financial Ratio Analysis is the relationship between the performance of a company and the monetary data in the financial statements to assist the economic conditions. Financial ratio was defined by Robert (1994) as two financial variables being used that have been taken from either the income statement or from the balance sheet. Ratio analysis is a tool that is brought in by individuals to perform an evaluative analysis of information in the company’s financial statements. It is
Section B1: Financial ratio calculation and analysis 1. Introduction In this report, the profitability and liquidity of Super Retail Group Ltd (SUL) and The Reject Shop Ltd (TRS) will be compared by analysing these ratios-- return on assets, profit margin, gross profit rate, cash flow to sales ratio and acid ratio. In addition, we will also focus on the ratios change between the two companies from year 2010 to 2011 and reveal what these ratios illustrate and how they would influence the future
Uses of Financial Statements Income Statements Also referred to as a Profit and Loss (P&L) statement, income statements illustrate a company’s revenues and expense, operating and non-operating income and expense, which is generated and incurred within an accounting period. “The analysis of income can create a picture of the quality of operations in the composed profit and loss account period” (Jeletic, 2012, pg. 325). In addition, income statements also inform external users of net profits or losses
CQ 4, 7 BUS2215 Problems 1-8, 12, 17, 18 February 8, 2012 4. Financial Ratios Fully explain the kind of information the following financial ratios provide about a firm: Quick Ratio | This ratio measures a company’s ability to meet its short-term obligations with its most liquid assets, which is why inventory is omitted. | Cash Ratio | This assesses a company’s financial durability by examining whether it is at least profitable enough to pay off its interest expenses
collection and review of financial information and statements. Financial statement analysis is a method of reviewing and analyzing a company’s or organizations financial statements such as their balance sheets, income statements, and statement of cash flows. Financial statement analysis helps companies gain an understanding of the financial position of the company, results of their operation, and cash flow of their company, which is also the main purpose of financial statements. In this paper
History Of the company: Crescendo Corporation Berhad is one of the biggest names in the construction industry of Malaysia. The CCB (Crescendo Corporation Berhad) is listed in the Main Board of Bursa Malaysia Securities. It has a huge investment in various subsidiaries that are involved in construction, property and resort development. ( Crescendro 2014). In 1989 it started with 600 acres industrial park at Taman Perindustrian Cemerlang ("TPC") by its subsidiaries. ( Crescendro 2014) It is among