Ratio Analysis Essay

Conducting a ratio analysis through ratio calculation is vital. Ratios calculation is a useful tool of management because ratios are critical indicators of financial strengths and weaknesses and thus the basis of the overall situation analysis. Some of the significant financial ratios include; profitability ratios, leverage ratios, activity ratios, and liquidity ratios (Tugas & CISA, 2012). These ratios can identify financial trends for the company and can be used to make industry comparisons. Ratios

| | Ratio | Working | 2009 | Working | 2010 | 1 | Return on Equity(ROE) | PBIT x 100Average Owners Equity | 398000 x 100(390000 + 430000)/2 | 97.07% | 292000 x 100(430000 + 527300)/2 | 61% | 2 | Return on Assets(ROA) | PBIT x 100Average Total Assets -CL | 398000 x 100[(1000000 + 1015000)– (165000 + 152200)]/2 | 46.88% | 292.000 x 100[(1015000 + 1126300)-( 152200 + 174000)]/2 | 32.18% | 3 | Net Profit Margin(NP%) | PBIT x 100Sales | 398000 x 1002180000 | 18.26% | 292000

name a few. Much like its competitor Pepsi, products are sold in more than 200 countries worldwide. Major competitors of PepsiCo include Coca- Cola, ConAgra Foods, Inc., Kraft Foods Group, and Monster Beverage Corporation. Price Ratio Analysis The current PE ratio of a

Table of Contents 1. Introduction 4 2. Executive Summary 5 3. Financial Analysis 5 3.1. Profitability 5 3.2. Analysis of Investment Performance 13 3.3. Financial Condition 17 3.4. Dividend Policy 22 4. Conclusion 26 5. References 27 Introduction The analysis supplied within this report has been undertaken from the perspective of a current shareholder in Singapore Airlines (SIA). The report provides critical assessment of the company's overall performance, assessment

the debt to equity ratio was set up as 80/20, initial investment would be $4.3 million dollars with the 80/20 ratio. The remaining $17.2 million dollars would be financed with a 6.95% interest rate through a 25-year mortgage term. Comparing the 80/20 ratio with the 65/35 ratio, the initial investment with the 65/35 ratio will be higher with 3.2 million dollars. Under the same interest rate and amortization terms of 6.95% over 25 years, the investment with the 65/35 ratio will yield a positive

VZ 2014 Sec 10-K Annual Reports Analysis Project Verizon Communications, Inc. 2014 SEC 10-K Annual Reports Analysis Project Executive Summary The company I selected to research is Verizon Communications Inc., an American telecommunications company. I chose Verizon because I am a current subscriber to all their major residential services from phone to internet and FIOS. Verizon is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business

American Corporation Analysis The purpose of this paper is for Team C to select an American Corporation to conduct a financial analysis. Team C has selected Walmart to conduct a comparative and ratio analysis to measure the company’s profitability and liquidity. Team C will use the following profitability ratios: earning per share, price earnings ratio, return on assets ratio, gross profit rate, asset turnover ratio, payout ratio and return on common stockholders’ equity ratio to analyze Walmart’s

financial information of these companies to determine which company is performing better. In Part A, I will examine liquidity and coverage ratios, assessing each company’s ability to meet its debt obligations in both the short and long term, to pay dividends, and to cover its expected operating expenses. Next, in Part B, I will inspect profitability ratios, assessing the ability of each enterprise to provide its investors with a return on their

Kennedy and Muller (1999), has explained that “The analysis and interpretation of financial statements are an attempt to determine the significance and meaning of financial statements dataso that the forecast may be made of the prospects for future earnings, ability to pay interest and debt maturines (both current and long term) and profitability and sound dividend policy.” T.S.Reddy and Y. Hari Prasad Reddy

reasons 7 2.2 Description of method used to collect information 8 2.3 Limitation of gathering information 9 2.4 Ethical Issues 9 2.5 Ratio Analysis 10 2.5(a) Limitation of ratio analysis 11 2.6 SWOT analysis 13 2.6(a) Limitations of SWOT analysis 13 2.7 PEST analysis 13 2.7(a) Limitations of PEST analysis 13 Section 3 Business Performance Analysis 15 Polyester 15 Soda Ash 16 3.1 Major Developments 19 3.2 Competitive Position of UNILEVER. 20 3.3 Future Outlook 20 Section