Financial Ratio Analysis : Financial Ratios Analysis

By increasing the number of beds by 50%, the total number of beds available would become 135 (90 x 1.5 = 135 beds). As a result, Shouldice Hospital could perform a maximum of 45 operations per day before running out of bed capacity. With operations still being performed 5 days per week, the total bed capacity would become 675 beds (135 beds x 5 days a week = 675 beds). In relation to the current operation of 30 patients per day, the utilization rate for bed capacity would now be 66.67% (450 / 675 = 66.67%).

The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,

The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.

The debt ratio for 2015 was 42.30%, 2014 was 49.94%, and 2013 was 56.18%. While not bad percentages, one also needs to be reminded here that in 2013, Sprouts just went public and just

When a company is growing so fast, it is a good idea to look at how it is paying for the growth. A good way to do that is by looking at the current ratio because it shows assets compared to liabilities. CMG’s current ratio over this time period has varied a good bit: 2013 = 3.34, 2014 = 3.5, and 2015 = 2.91. What stands out in that is the decrease in 2015 which could indicate issues with the company. However, after looking more in depth, it can be seen that this decrease is most likely related to the company’s fast growth in that year and its need to finance the growth. In addition, CMG’s

This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.

A Debt Ratio above 100% indicates that a company has more debt than equity. Riordan has a low level of debt compared to its equity, which informs us that it is safe to lenders and investors. The Debt Ratio for its industry is 1.85.

1.) Significant level of indebtedness affecting financial flexibility for business expansion. The UnitedHealth Group had a long term debt (less current maturities) of $8.7 billion in FY2010 as compared to that of $7.5 billion in 2006 ("Research and Markets", 2012).

Chesapeake Health Plans debt management structure reflected a significant decline from the 2008 fiscal year of 68% to 55.2% in 2009. This decrease was a 13% drop from that of the previous year. By dividing the total debt by the total assets, Chesapeake’s debt ratios can be calculated and further managed effectively. Furthermore, these figures from

It is important for healthcare organizations to understand their present performance and weak areas in order to generate more effective operational strategies. Financial ratio analysis is an effective tool to determine hospital’s performance on several indicators such as ability to pay debt, capability to generate revenue, and sales performance etc. The objective of this paper is to describe role of different financial ratios in understanding organizational performance and in developing new strategy. The paper also presents comparative ratio analysis of local healthcare organization and industry

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.

Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the

When a company goes bankrupt, intangible assets depreciate at a much faster rate than regular assets; therefore, most pharmaceutical companies already tend to avoid debt. Therefore, in this case a high current ratio does not indicate unsatisfactory business condition, but a rather favorable and smart condition for the company.

Over the years, Microsoft Corporation has been developing and supporting numerous software products for various computing devices worldwide. As stated by Liquori (2011), “[This] enables business innovation and helps builds the company’s competitive advantage” (n.d). Microsoft’s technical innovations and leadership in consumer and corporate markets has made it a formidable competitor in this information age (liquor, 2011). Throughout this paper, I will provide financial ratios analysis of Microsoft Corporation based on the available financial data for the last five years.

Financial ratio, also known as accounting ratio, entails a relative magnitude of any two values, in this case “numerical” obtained from a firm’s financial statement. They are basis of valuing a company hence it’s a complex task that requires a critical analysis of various components of financial ratio such as profitability ratio, debt ratio, investment valuation ratio, operating performance ratio, cash flow indicator ratio and liquidity measurement ratio. Therefore, the following financial ratio analysis shall value Coca-Cola consolidated company and PepsiCo Inc. (PEP) through a critical comparison based on their asset utilization, profitability, debt management, market ratio and liquidity.