FNT Task1

Current ratio measures capability of a company to pay short-term or long-term obligations. (Current ratio, myaccountingcourse.com) The current ratio appraise a company capability by considers the total assets of a company relative to that company’s total liabilities. Grand Central Enterprise have the highest current ratio which is 14.89 times. Shangri-la Hotel got the lowest current ratio compare to its competitors which is 0.52 times. The current ratio of PAN MALAYSIA is in between Shangri-la Hotel and Grand Central Enterprise which is 9.24 times. Investors are able to understand the ability of a company to pay off its current liabilities through current ratio. A higher current ratio is more advantageous than a lower current ratio. This is because a higher current ratio always shows the company can more lightly to make current debt payments. So, Grand Central Enterprise had the better current ratio and this represent it had a better capability to make current debt payment.

The table below shows our ROA for each year compared to the industry. The graph following shows the ROA for Andrews alone over time.

A. Current Ratio: The ability for a company to pay short term obligations is measured by this ratio. In 2011 Company G moved from 1.86 to 1.77. Compared to the 1.9 Home Center Retail Benchmarks industry ratio, the numbers are below standards. Current Ratio represents values above 2 quartile industry benchmarks data (1.4 to 2.1). Current Ratio represents a weakness for Company G.

An organization’s current ratio shows how liquid the assets of the agency are by comparison to the short term debts that the agency must pay to continue its operations. This ratio is calculated by taking the assets that can be converted to cash within a year (current assets) and dividing it by the liabilities that are either currently due or will become due within a year (current liabilities). The current ratio, ideally, should be at

To find the current ratio you need to look on the company’s balance sheet. You take the current total assets and divide by the total current liabilities. This gives you your current

Description: A key metric used to measure an enterprise’s ability to meet its debt and other obligations. The solvency ratio indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities. Lower a company's solvency ratio, the greater the probability that it will default on its debt obligations.

Current ratios give the investor the opportunity to see the company’s ability to pay back its short-term liabilities with its short-term assets (Current Ratios, n.d.). The higher the current ratio, the more capable the company is to pay back its debts

Further to the aforesaid points, the greater percentage of revenue was derived from the sale of

of 4.2, compared to the industry at 4.4. The higher the ratio, the more effective a business stands.

A higher this ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. Amazon performing better in this metrics.

Sales This Ratio shows the final profit that is made on sales after all the running expenses have been deducted from the gross profit. This ratio is useful when compared to the gross profit margin % as if the net profit margin % has decreased, and the gross profit margin % has increased then running costs need to be investigated. This ratio % should be as high as possible. The results show that Marks and Spencer had a net profit margin of 6.23% in 1999, this dropped in the two subsequent years to a low of 5.45% in 2001.

Profitability ratios help determine the overall effectiveness of management regarding returns generated on sales and investments. Commonly used profitability ratios are gross profit margin, operating profit margin and net profit margin. Gross profit margin measures profitability after considering cost of goods sold, while operating profit margin measures profitability based on earnings before interest and tax expense. Net profit margin is often referred to as the bottom line and takes all expenses into account. Here most of the profitability ratios that Delicieux has have made an impressive amount of improvements excluding the net profit percentage which has decreased but Delicieux can look into methods which can be

The net profit ratio expresses the connection between net profit and net sales as a percentage. It point out the border of success of the company. It give you an idea about how much money is left to cover operating expenses and how much is left for net profit to give back to the shareholder.

The calculation of ratios is the calculation technique for analyzing a company’s financial performance that divides or standardize one accounting measure by another economically relevant measure. Financial ratios can be used as a tool to demonstrate financial statement users for making valid comparisons of firm operating performance, over time for the same firm and between comparable companies. External investors are mostly interested in gaining insights about a firm’s profitability, asset management, liquidity, and solvency.

This ratio is expressed in percentage. If the ratio is high it shows that the company is utilizing its assets in better way to generate its income. If the ratio is less it shows that the company is in difficult position to meet its debt. Formula to find the return on assets ratio is: - return on assets = net profit / total assets. Whereas net profit means the amount arriving after deducting all the expenses which includes taxes also. In addition to this he also explains about the profit margin ratio (PMR). PMR is the ratio which expresses the relationship between profit and sales. Formula used to find the PMR is: - Profit margin ratio = net profit/net