Ratios

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

Current Ratio The first of the liquidity ratios is the current ratio. The current ratio is the number of times that current assets exceed current liabilities. It is calculated by dividing the company’s current assets by their current liabilities. In most circumstances, the higher the current ratio, the better. The ratio is an excellent indication of the company’s ability to pay its short-term debts. A decline in the current ratio could imply that the company is having trouble generate cash, it could

Ratios are important in any type of business, because ratios are sued all the way across the board. many financial ratios are used for the purpose of credit analysis, to see where a company stands financially. The three types of ratios are liquidity, solvency, and profitability. Within these main ratio types there are also 8 other basic types of ratios. The basic ratio I would chose to use in a small community hospital with only 30 beds would be the following: I will start by selecting

2.0 FINANCIAL RATIOS 2 Liquidity Ratios Liquidity ratios measure a business ' capacity to pay its debts as they come due. It also measures the cooperative’s ability to meet short-term obligations. Liquidity refers to the solvency of the firm’s overall financial position – the ease with which it can pay its bills. Because a common precursor to financial distress and bankruptcy is low or declining liquidity, these ratios can provide early signs of cash flow problems and impending

RATIO ANALYSIS: • Definition: Ratio analysis is the correlation of diverse amounts or number in company financial account to sort how successful a company is. It’s an effective tool that can help you to know the financial results and change of trend over time and use to evaluate company performance. Furthermore company can find their strengths and weaknesses through which you can estimate future financial performance. • Four types of Ratio Analysis:  Liquidity Ratio  Solvency or Leverage Ratio

Please upload your final submission to the Week 7 Dropbox by the Sunday ending Week 7. For the Draft: Create an Excel spreadsheet or use the Project template to show your computations for the first 12 ratios listed above. The more you can complete regarding the other requirements the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as a formula or as text typed into a different cell. If you plan on creating

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

Research Hospital, we calculated 6 of the following performance measure ratios. Since we must choose the Program Effectiveness Ratio and Fund Raising Ratio plus any four of the performance measure ratios, we chose the Going Concern Ratio, Liquidity Ratio, Efficiency Ratio, and Fund Raising Efficiency Ratio. 1. Program Effectiveness Ratio Total Program Expenses ÷ Total Expenses 722,304,197 ÷997,401,179= 72.42% 2. Fund Raising Ratio (Total Contributions- Fund- raising costs) ÷ Total contributions (797

Ratio and Financial Statements Analysis Kimberly Y. Gruber University of Maryland University College Dr. Sunando Sengupta 07/25/2013 Turnitin Score: 23% Executive Summary The purpose of this paper is to examine ratio and financial statement analysis. Such analysis is a useful tool for managers and stakeholders to evaluate a company’s financial health in order to identify opportunities for growth and areas of weakness so as to institute corrective measures.  Financial statements are used

Liquidity Current Ratio & Acid Test Ratio - The five-year current ratio average for Ross was 1.41 with an acid test ratio of 0.47, while TJX had an average of 1.63 for their current ratio, and 0.66 for their acid test ratio. This shows that TJX has a greater ability to pay back their debts than Ross does. Even though both companies have a low acid test ratio, compared to their competitors, it isn’t so bad. Other competing retail stores such as Walmart and Target have an acid test ratio of 0.19 and 2