Ratio Analysis Memo

In 2009 the company ratio was 1.02 and climbed up to 1.03. This means that the company will take up their profits in future of which is a good sign.

Nike 's sales and earnings outpaced Wall Street estimates FY 06. Nike 's sales reached $15 billion and its earnings per share were up 18%. Over the past 5 years, Nike 's earnings per share on compounded rate were up 20%, gross margins averaged 42% and in the past year, Nike delivered 44% margins in a period of rising costs. The current managers are maximizing shareholder 's wealth but in the footwear industry, Nike 's performance still falls. The footwear industry averaged about 14.25%, while Nike 's growth in stock was 10.48%. If the increase in value of shares is a benchmark of performance for managers, Nike 's performance is unimpressive. The brand itself is considered the biggest strength of Nike.  Nike earns more revenues from its international operations than its domestic market. Nike earned about $6.5 billion FY 2005 from its international operations, compared to $5.1 billion from its domestic market. International operations appear to be a key driver of Nike 's growth. The picture below illustrates Nikes price trend for the last five years.

Reinvestment Returns: I found "b" (the reinvestment rate) by using exhibit 1 to calculate the percentage of net income per share of common stock that is paid out in dividends, and subtracting it from 1 to solve for the percentage reinvested. The return on equity, "k", is found by dividing net income (exhibit 1) by book value (exhibit 2). G = b*k shows g = 8.14%.

When combining the figures for ROE, ROA and the DuPont analysis it appears that the company is using leverage favourably. ROE is greater than ROA and assets are greater than equity. This is a positive sign for shareholders as it suggests a good investment return in a company that is managing its shareholder equity well (Evans & McDowell, 2009).

This memo is in regard to a recent horizontal and vertical analysis performed on Kudler Foods. The analysis completed was to inform the company of potential interests from different users. The users will be able to use ratios calculated to reveal performance and the current position of the company. The vertical and horizontal analysis is attached along with calculations of liquidity, profitability, and solvency ratios.

The liquidity, profitability, and solvency ratios reveal some interesting points about Kudler Fine Food’s financial position. The liquidity ratios revealed that during 2002 and 2003, Kudler was having no trouble paying short-term debt. However, the current and acid-test (quick) ratios showed that during 2003 Kudler had an excess amount of cash that they were not investing properly. These ratios also showed that Kudler was collecting receivables and selling average inventory very quickly. The profitability ratios revealed that during 2002 and 2003, Kudler was using assets efficiently and making a decent profit. The profit margin ratio showed that during 2002 Kudler made a profit of four cents per dollar, and during 2003 they made a profit

The Rate of Earnings has increased from the previous year. The company is in growing stage and the cost of machinery is huge that’s why the profit margin is low.

This is the report about financial ratios analysis of Pumpkin Patch Limited(PPL). This children’s clothing retail brand began with one store in 1991, now has about 600 employees across 43 stores in New Zealand and 1000 staff in 117 stores in Australia. However, it tripped into receivership recently. At the same time, Pumpkin Patch managing director Luke Bunt said “however, despite considerable efforts by the board and its management team, it has become evident that no solution is available to the company, at this time, to address the current over-leveraged and significantly capital constrained position.” (McNicol, 2016)

More recent data suggest that TOF ratios measured with EMG, MMG, or AMG must recover to values > 0.9 to ensure optimal patient safety. Data derived from volunteer studies have demonstrated that pharyngeal dysfunction and an increased risk for aspiration occur at TOF ratios < 0.9.[7, 51,] 16 Impaired inspiratory flow and partial upper airway obstruction have been observed frequently at TOF ratios of 0.8.[8] Furthermore, subtle levels of neuromuscular blockade may produce distressing symptoms in awake patients, which may persist even at TOF ratios >0.9.[52] 17 These data suggest that the new “gold standard” for the minimal acceptable level for neuromuscular recovery is TOF ratio of 0.9.

They experienced a substantial growth in 2013. They had the gross profit margin of 25.35 percent in 2012 and 26.66 percent in 2013, which is a 5.2 percent increases. (Gamble, Peteraf, & Thompson, 2015, p. 368, Exhibit 1). They expected additional growth to the company in over the year. Thus, they targeted to achieve $50 billion sales by 2018 fiscal year and 12 percent profit margins by 2015 fiscal year. (Gamble, Peteraf, & Thompson, 2015, p. 371). However, the increases in profit were not last forever. They had the gross profit margin of 24.83 percent in 2014, which was the declines of 6.87 percent compared to the previous year. (Gamble, Peteraf, & Thompson, 2015, p. 368, Exhibit 1). According to Cancino (2015), “We could be facing the largest single-year scale decline in the company’s history with income at barely half of its 2013 peak” (as cited in Chicago

In this paper I will be analyzing the financial statements of Kroger and Costco. It is my job to compare and contrast the two companies’ based on their liquidity, solvency, and profitability. This will be done by integrating the concepts I have been introduced to throughout the course by using appropriate ratios and current accounting principles. I chose Kroger Company since it is an American retailer that was rated the country’s largest supermarket chain by revenue and second-largest general retailer. Kroger maintains markets in 34 states with over 2,600 supermarkets and multi-department stores. Also, I chose Costco since it is the third largest retailer in the United States falling right behind Kroger.

Earnings per share also decreased from $2.61 to $1.62. Capital intensity went down 1% sitting at 17.2%. the dividend payout ratio of free cash flows also went down 1% to 58% compared to previous year’s payout ratio. ROA for the year also went down by 1.7% to 2.9% compared to last year’s

Although, sales, income and growth through expansion generally have increasing trends, there are some items that were greatly overlooked. Its profitability performance is summarized in the table below:

Ratios describe the various relationships among accounts in the balance sheet and income statement. Financial ratios are important and helpful gauges of how an organization is functioning. An organization’s financial health, potential revenue, and even possible bankruptcy can be garnered from financial ratios. Information derived from financial statements is used to calculate most ratios and make projections. “Ratios help investors and lenders determine the risk associated with lending or investing funds in an organization” (GE Financial Healthcare Services, 2003, para 1). According to Finkler and Ward (2006), “the key to interpretation of ratios is benchmarks. Without a basis for comparison, it is

In other to understand the ratio analysis, here is a summary of the regional and services contribution towards total growth rate of both companies for the 2013 and 2012 year, which would be discussed further in the ratio analysis.