Financial Analysis of Bmw

1746 Words7 Pages
7.0 Ratio Analysis

Ratio analysis is the starting point in developing the information desired by the analyst. Ratio analysis provides only a single snapshot, the analysis being for one given point or period in time. In the ratio analysis, it is possible to define the company ratio with a standard one. I different ratio that can be classified as follows:

➢ Liquidity ratio

➢ Activity ratio

➢ Profitability ratio

➢ Debt-coverage ratio.

7.1 Liquidity ratio:

A liquidity ratio is a ratio that shows the relationship of a firm’s cash and other current assets to its liabilities. A “liquid firm” is one that can easily meet its short-term obligations as they come due.

7.1.1 Current Ratio:

The current ratio
…show more content…
So we can say that efficiency of the company has gone down. Liquidity of the company has also gone down.

7.1.4 NWC to Asset Ratio:Net working capital is calculated by the folowing formula

|NWC to Asset Ratio | | | | |
| | | | | | | |
| |Current Asset | |102,838,|183,804,896 |120,641,172 | |
| | | |223 | | | |
| |Total Assets | |364,345,|508,675,871 |280,664,180 | |
| | | |404 | | | |
| |NWC to |0.0181031 |(0.1220847) |0.0247386 |
Get Access