# Financial Analysis of Bmw

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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
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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 |