Financial Ratios Essay

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  • Financial Ratios : Financial Ratio

    1202 Words  | 5 Pages

    Financial Ratios In the acquisitions and mergers of companies, there are several financial ratios that are essential to consider. These financial ratios give clear pictures of the financial position of the parent company and the company that is to be acquired. The financial ratios indicate whether a company is in a financial position to acquire a new company, and whether it would be in the best interest of the parent company to acquire the new company. It is also important to note that an accurate

  • Financial Ratios and Ratio

    4190 Words  | 17 Pages

    1. Introduction This report provides a financial quarterly trend analysis for Costco Wholesale Corporation, Inc. founded in 1983. Costco Wholesale Corporation is the seventh largest retailer company in the world. As of July 2012, it was the fifth largest retailer, and the largest membership warehouse club chain in the United States ("Wikipedia, the free," 2011). Costco Wholesale Corporation’s stock is publicly traded on the National Association of Securities Dealers Automated Quotation (NASDAQ)

  • Course: Financial Ratios and Ratio

    1201 Words  | 5 Pages

    Your Course Project Financial Statement Analysis Project -- A Comparative Analysis of Oracle Corporation and Microsoft Corporation Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First, select 2011 using the drop-down arrow labeled for Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page. You should select the 10k dated 6/28/2011 and choose

  • Financial Ratios

    1296 Words  | 6 Pages

    GROUP 1 REPORT FINANCIAL RATIOS Financial ratios are useful indicators of a firm’s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm’s financials to those of other firms. In some cases, ratio analysis can predict future bankruptcy. SOURCES OF DATA FOR FINANCIAL RATIOS     Balance Sheet Income Statement Statement of Cash Flows Statement of Retained

  • Financial Ratios

    4404 Words  | 18 Pages

    FINANCIAL RATIOS LIQUIDITY RATIOS Current Ratio: = current assets / current liabilities ▪ The higher the ratio, the greater the "cushion" between current obligations and a firm 's ability to meet them. ▪ Use: An indication of a company 's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities

  • Financial Ratios

    670 Words  | 3 Pages

    Interpreting Financial Results FIN/571 July 22, 2013 Interpreting Financial Results Liquidity: Current Ratio Parrino, Kidwell, & Bates (2012) detail the current ratio as current assets divided by liabilities. The current ratio identifies a firm’s potential to pay short-term liabilities; higher liquidity is a good sign for potential creditors (Parrino et al., 2012). At the same time, however, the current ratio should not greatly exceed benchmarks of other competitors (Parrino et al., 2012)

  • Financial Ratios : Current Ratio

    1551 Words  | 7 Pages

    Financial ratios 1. Current ratio Current ratio=Current Assets/Current Liabilities 18,720 / 17,089=1.0954 2. Quick ratio Quick ratio= (Current Assets – Inventories) / Current Liabilities (18,720 – 3,581)/17,089=0.8859 3. Return on Assets ratio Return on Assets ratio= Net Profit before Tax/Total Assets 34,201/74,638=0.4582 4. Net Profit Margin Net Profit Margin=Net income after taxes/revenue 6,214/65,492=0.0949 5. Accounts Receivable Turnover ratio Accounts Receivable Turnover ratio=Sales/Accounts

  • Financial Ratio Analysis : Financial Ratios Analysis

    1634 Words  | 7 Pages

    UNIVERSITY OF HOUSTON CLEAR-LAKE HADM 5233: FINANCIAL MANAGEMENT II ASSIGNMENT: FINANCIAL RATIO ANALYSIS UHCL Honesty Code “I will be honest in all my academic activities and will not tolerate dishonesty.” Uday Sekhar Reddy Mareddy

  • The Role of Financial Ratios

    4968 Words  | 20 Pages

    The Role of Financial Ratios Table of content Introduction 3 Chapter 1. Notion and types of ratios. 4 1.1 Liquidity ratios. 5 1.2 Financial leverage ratios 7 1.3 Funds management ratios 9 1.4 Profitability ratios 12 Chapter 2. Use of financial ratios. 15 2.1Use and Limitations of Financial Ratios 15 2.2 Used financial data 15 2.3 Financial ratios calculated for The Apple Company 16 2.4 The Dupont Model 18 Appendix 1 21 Conclusion 23 Bibliography 24 Introduction I have chosen

  • Financial Ratios Comparison

    1906 Words  | 8 Pages

    The companies’ financial ratios can be compared with the ratios of other equivalent companies between business sectors at one point of time. These comparisons provide explanations on the relative financial status and performance of the company compared to the relative performance of its competitors. Comparisons are usually made with other companies in the same business sector and the benchmark is assumed to be the suitable value for a company. The assumption here is for the companies in the same