Moserk Company Ratio Analysis

Improved Essays
Moserk Company Ratio Analysis When it comes to a business’s financial records, it is extremely important for them to be properly documented. Without keeping track of financial history, it is virtually impossible to see why or how a business is failing or succeeding. When looking at these statements, it is very important to understand their relationship to one another. One way these calculations have been developed and analyzed is through the use of ratios. Financial ratios produce a numerical value that can then be compared to other businesses or even to industry averages. The results following the financial statements for the Moserk Company produces interesting outcomes. When compared to the industry averages, there were a few that proved …show more content…
A business with a high quick ratio can easily pay back its liabilities. With a low ratio at 0.20 for Moserk (average 0.75), this shows that they do not have the ability to pay back these debts very quickly. Improving this number will encourage investors to further conduct business with the company. Looking at the Gross Profit Margin could help to promote more positive thoughts. The higher the profit margin is will show that the company retains a greater profit on each item. In comparison to the industry standard, Moserk is preforming fairly well. They are at 21.68% and the average is held at 25.00%. This number is referred to to ensure that the business is efficient and profitable as its competitors. The Net Profit Margin shows the overall amount retained per sales dollar once all of the business expenses have been paid. With Moserk at 9.22% and the industry standard at 10%, they are not too far behind. Slight changes in the expenses could help boost this number above the average …show more content…
In this situation, lower ratios are desirable. A high debt to equity ratio would spark concern for investors because it would reflect that the company cannot repay its liabilities if the need would present itself. For Moserk, it is just slightly higher than the industry standard. Moserk is at 1.22 and the average is 1.20. They are relatively close to a desirable ratio. Times Earned Interest helps to explain a company’s ability to pay off interest payments in the time specified. It is concerning to see at Moserk is at 20.05 when the industry standard is 15.00. They are certainly less likely to make these payments on time. ROA is a tool that helps to show the company’s profits before leverage. The average is 14.50% and the company was valued at 9.22%. Although this number is not extremely low, it does show that it has a lower percentage of the profits in relation to its assets. ROE can be utilized to show how a business profits are in relation to the amount that is withheld as shareholder equity. Valued at 53.83%, Moserk is nearly double the industry average at 28.75%. This strongly shows the overall value of the shareholders and their role in the business. Although this high number is considered a strong value, it does not properly represent the entirety of the companies financial

Related Documents

  • Great Essays

    Financial Ratios for Suzuki 2005 2006 2007 2008 2009 Current P/E Ratios 30.46 42.20 54.98 5.91 42.48 Current ratio -3.35 -3.94 -7.78 -8.77…

    • 595 Words
    • 3 Pages
    Great Essays
  • Improved Essays

    If the ratio is high then the company is in good shape to pay its obligations. The higher the ratio the better. CanGo recorded a Net Profit Margin of .8…

    • 329 Words
    • 2 Pages
    Improved Essays
  • Great Essays

    Peyton Approved Case Study

    • 1050 Words
    • 5 Pages

    The numbers in all three of those ratios yield right in line with a business who is performing at a profit…

    • 1050 Words
    • 5 Pages
    Great Essays
  • Decent Essays

    Target has the current ratio of 1.12 for 2015 and 1.16 for 2014; however, the industry average is 2.1. Because the company’s ratio is above one, we are certain they are capable of paying off their liabilities. One of the more troubling ratios is the fixed asset ratio that helps us understand how well the company’s operating performance is. For Target Corporation, they had a FA ratio of 2.93 (2015) and 2.80 (2016). Not only is there a decrease to be found, but they are doing poorly compared to the industry’s average of 33.9.…

    • 597 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Avery Dennison

    • 801 Words
    • 4 Pages

    Companies: We have picked 5 of the top companies in the material sector that we think meets the criteria of good performing companies. These companies are Avery Dennison (AVY), POSCO ADR (PKX), Newmarket Corp. (NEU), Nucor Corp. (NUE) and Insteel Industries Inc. (IIIN). Avery Dennison (AVY) Avery Dennison (AVY) is a company that specializes in Chemical (Speciality). The company S&P STARS Rank is 3 stars (HOLD) and the timeliness-Valueline is 2. The returns for the last 1 month, 3 months and 6 months (from YChart) are 1.79%, 8.76% and 9.88% respectively.…

    • 801 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    On the attached Excel workbook, a look at Under Armour and Nike can be found. These two companies will be looked at in order to determine which would be a better company to invest in. In the below document, a more in depth financial performance can be found. Three-Year Returns The first look at these two companies is in regards to their three-year returns.…

    • 1147 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Verizon Ratio Analysis

    • 1045 Words
    • 4 Pages

    This all being said, Verizon is worth the hype. All of their numbers are increasing at a steady and constant rate with no dismal future in sight. Here are a few short analyses of what financial accounts are supporting Verizon: - Profitability Ratios: This ratio varied from industry to industry. Some company that have an overall profit margin of 25% might seem relatively low.…

    • 1045 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Liquidity ratios reflect the company’s ability to pay its bills, debts and commitments. The more liquid the company is, the more cash it has to finance its operations. By analyzing the financial reports and looking at the liquidity of the company we can determine if the company can meet its short-term commitments by liquidating the short-term assets, which is really important to creditors and investors. One of the first ratios used to determine and analyze Wendy’s liquidity and compare it against Sonic Drive-…

    • 286 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Best Buy is a company that has changed majorly with the revolution of the online world. Most standard stores have switched to marketing online shopping as a bigger part of their market than previously. This has drastically changed how the finance function. The past three years of financial data for Best buy show a trend on how the online market has changed its business structure. In 2014, 2015, and 2016 respectively the total revenue has been $40,611,000, $40,339,000, and $39,529,000.…

    • 369 Words
    • 2 Pages
    Decent Essays
  • Great Essays

    Panera Bread Case Study

    • 2208 Words
    • 9 Pages

    This shows that the company might now face difficulties to cover up short term debts and also predicts that there is huge threat to the company’s going concern if the liquidity falls anymore In the future. There is a decline in the operating profits i.e. the profits earned during the normal course of the business of 1% in 2006. The Net profit margin has also shown decline over the years between 2002 to 2006. 3.…

    • 2208 Words
    • 9 Pages
    Great Essays
  • Great Essays

    When the primary ratios for profitability, activity and solvency are multiplied the resulting product will equal the ROE calculation as follows, (Callahan, Stetz & Brooks 2007): Net Profit Margin: Net Income 5,665,000 / Sales 134,252,000 = 4.22 Total Asset Turnover Ratio: Sales 134,252,000 / Average Total Assets 190,554,000 =…

    • 2346 Words
    • 10 Pages
    Great Essays
  • Improved Essays

    Introduction 1. Zara’s financial statement analysis The financial statement is recognized as an efficient method of communicating the company’s financial status and statistics to its shareholders (CILT, 2014a, p. 17). In addition, it aims is to provide a detailed description of where the company stands from a financial perspective along with its performance in a specified period. Hence, an organization can plan and set their future economic decisions based on their performance reflected in the financial statements (CILT, 2014b, p. 18).…

    • 775 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    1. Introduction 1.1 Background on Financial Ratio Analysis Lenders and investors alike often use financial ratio analysis when determining the performance, solvency, and general business practice of a firm. Ratio analysis can serve as a tool to understand the relationship between quantities, and can be a useful benchmark in the comparison of two or more organizations within a common industry (Faello, 2015). The use of these ratios can determine factors such as asset and debt management, as well as calculating return on equity. By using public source documents, such as a firm’s income statement and balance sheet, a perceptive individual should be able to decipher the data into an organized format, which could reveal major indicators on the…

    • 1945 Words
    • 8 Pages
    Great Essays
  • Improved Essays

    | Total liabilities and stockholders' equity | $1,000,000 | $1,300,000 | $1,894,000 | | | | | | Exhibit 3 | Selected Industry Ratios | | | 200X | 200Y | 200Z | | Growth in sales | ----- | 9.98% | 10.02% | | Profit margin | 5.75% | 5.80% | 5.81% | | Return on assets (investment) | 8.22% | 8.24% | 8.48% | | Return on equity | 3.26% | 13.62% | 14.16% | | Receivables turnover | 10x | 9.5x | 10.1x | | Average collection period | 36 days | 37.9 days | 35.6 days | | Inventory turnover | 5.71x | 5.62x | 5.84x | | Fixed asset turnover | 2.75x | 2.66x | 2.20x | | Total asset turnover | 1.43x | 1.42x | 1.46x | | Current ratio | 2.10x | 2.08x | 2.15x | | Quick ratio | 1.05x | 1.02x | 1.10x | | Debt to total assets | 38% | 39.5% | 40.1% | | Times interest earned | 5.00x | 5.20x | 5.26x | | Fixed charge coverage | 3.85x | 3.95x | 3.97x | | Growth in earnings per share | ----- | 9.7% | 9.8% | | | Rubric: Watson Leisure Time Sporting Goods | | | 200X | 200Y | 200Z…

    • 1715 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    All responses are to be in your own words. This examination is due on Tuesday, 12/20/2016 at 11:59 PM and there are no exceptions. Any late submittals will result in a temporary incomplete grade for the course. Name__________Nishant Patel ( Nick)___________________________ Grade____________ 1. Please briefly describe an income statement, statement of cash flows, and balance sheet.…

    • 1669 Words
    • 7 Pages
    Improved Essays