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

  • Improved Essays

    2. The trend I noticed was that all three ratios: profit margin, return on assets, and return on equity had a good increase from 2001 to 2002. However, between 2002 and 2003 all three ratios take an even bigger down turn. This suggests to me that the common factor of these ratios, net income, has taken a sudden impact. Meanwhile, the one ratio that has held steady and even grew in 2003 was total asset turnover. This implies the firm was still making sales, but as an analyst these figures are concerning as all these ratios deal with decreased profitability and how it related to return to shareholders, and impact from sales.…

    • 503 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Verizon Ratio Analysis

    • 1045 Words
    • 4 Pages

    Verizon’s Long-Term Debt continued to grow from 0.698 in 2013 to 0.86 in 2015. This explained why their Long-Term Debt Equity was also high, their highest was in 2014 at 8.988 but in 2015 they manage to drop it to a 6.31. While T-Mobile maintained their Long-Term Debt at a constant 0.54, 0.51, and 0.55 (2013-2015 in that respective order). Even T-Mobile Debt/Equity ratio was steady at 1.0-1.2. Verizon has an aggressive leveraging practices that might looked upon as a company that take on more liabilities than equity. Nevertheless, it might be a tactic that Verizon is trying to aim for. In other words, “the higher the risk, the greater the…

    • 1045 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    has a ton of debt. If the ratio is low then the company has low debt. The…

    • 329 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    The current ratio is a liquidity ratio that assesses the company’s operating efficiency. The current ratio is computed by dividing the company’s current assets by current liabilities to assess whether it has enough resources to meet its obligations even when faced with unexpected events. In business, if the company’s current assets compared to current liabilities are a ratio of 2.1 it is expected the company will…

    • 1233 Words
    • 5 Pages
    Decent Essays
  • Improved Essays

    The debt to equity ratio measures a company’s financial leverage by dividing its liabilities by its equity. A high ratio indicates a company is using too much financing to grow. Although financing is a great tool for increasing production and capital, it is significant that CanGo shows financial growth so that higher earnings can be distributed to shareholders rather than cash flow going to repaying debts. Barnes & Noble’s most recent debt to equity ratio is 0.33 (Businessweek.com, 2014), CanGo’s is 0.67 which is notably higher than the industry average. Still, other ratios tell us that CanGo is not financing its growth enough, and is being too cautious with its capital.…

    • 716 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Target Financial Analysis

    • 786 Words
    • 4 Pages

    The liquidated ratios where over one percent for each year besides 2014. This shows that Target is able to pay their short-term bills. Total debt ratio could use less leverage when borrowing money. This company needs a higher equity position. Although this shows that Target has a higher risk, the TIE and equity multiplier show that you can trust the company, making this company likely to survive a financial shock like they have in earlier years. Asset ratios for target show that they are efficient with using assets to generate sales. The profitability ratios show a couple of statistics. Return on Assets shows that Target generates a low percentage average for every dollar they invest in assets. This leads to a low percentage average the firm gets on each dollar in sales. Return on Equity; however, generated a higher percentage of each dollar invested in Targets investments. The ROA and ROE show that Target becomes more profitable as the year…

    • 786 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Kroger's Financial Ratios

    • 819 Words
    • 4 Pages

    This ratio tells investors and creditors how well a company is able to pay for their short-term commitments. Typically, in most industries a current ratio greater than one is desirable, but in retail, it is commonly accepted that the ratio can be much less than this standard. For instance, Kroger’s current ratio in 2018 is .78, whereas its competitors is .94. Kroger’s disclosures on their financial statements indicate the ability to pay for all short-term obligations, but falling behind their competitors by .16 may indicate future concerns.…

    • 819 Words
    • 4 Pages
    Superior Essays
  • Great Essays

    Costco Financial Ratios

    • 1565 Words
    • 7 Pages

    Investors like to see increasing ROE percentages because increasing the ROE increases the amount of net income for each dollar invested. The ROE formula is Net income/Total stockholders’ equity. Three additional ratios impacting ROE include net profit margin, which is the percentage of profit remaining after meeting all expenses, total asset turnover rate, which indicates how efficiently corporations use available assets generating revenue. A higher asset turnover indicates better efficiency generating revenue with the assets available. The final ratio impacting the DuPont analysis is the equity multiplier, which indicates the degree that company assets are financed with stockholder equity versus financed with debt. A higher equity multiplier indicates a higher degree of financing assets with debt, Comparing ROE results between Costco and Wal-Mart reveals Costco’s overall improving trend over the three year data period while Wal-Mart’s ROE declined in each of the same three years. When reviewing the DuPont component ratios, it is evident that Wal-Mart’s has higher net profit margins, lower total asset…

    • 1565 Words
    • 7 Pages
    Great Essays
  • Decent Essays

    Overall, Target’s gross margin remains steady (29%) for all four years, but the net profit margin was not the same throughout the year. This indicates that Target’s administrative expense has changed. Especially, in 2014, the net profit margin was -2.3%. Again, this is due to the data breach in 2013. Next, Target’s ROA was mainly influenced by the asset turnover ratios instead of the profit margin. Finally, the ROE fluctuates the most throughout all of the ratios. ROE has increased 5.9% from 2013 to 2016; therefore, target has shown a significant improvement in generating more profit with shareholder…

    • 503 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Game Stop Ratios

    • 559 Words
    • 3 Pages

    Throughout this assignment, I took a deep look into a popular video gaming company called Game Stop. This task challenged me to take a look at the ratios for over the course of three years for this company. In doing so, I’ve been able to analyze the information that I have found. Now that I have created this chart, I will take a look at the ratios and see how they compare to the industry benchmarks. Once I do that I will take a look at which ratios are strong and which ones need improvement. I will take it a little step further based off of the information that I receive to determine that if I was a stock investor whether or not I would buy the company’s stock. Finally, I would take a look at it from a bond investors stand point to see whether or not I would buy the company’s bond.…

    • 559 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Our current ratio, which is our current assets divided by our current liabilities, was 1.60 times, which indicated that we had $1.60 in current assets for every $1 in current liabilities (University of Notre Dame, 2014). Additionally, working capital, which is the “difference between current assets and current liabilities”, was $28,279 (NYU Stern, 2014). Both of these results reflected substantial liquidity for KapConsulting because an ideal capital ratio is 1.00, which indicates that the company has at least a sufficient amount of current assets to cover current liabilities. Our results indicate that we exceeded the minimum threshold by more than 60 percent. Additionally, an ideal working capital is one where current assets exceed current liabilities for the same reasons. Our working capital reflected both our ability to cover current liabilities and the availability of cash for investments in other assets that have income-generating…

    • 596 Words
    • 3 Pages
    Improved 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. The cost of revenue in the same order is as followed: $31,212,000, $31,292,000, and $30,337,000. Lastly the net income for each of the years following the same pattern are: $532,000, $1,233,000, and $897,000. During these three years a pattern can be seen that…

    • 369 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    The return-on-equity ratio for 2014 is 15.4% under the tab, Under Armour Balance Sheet in W2 in cell N13. Finally, the return-on-equity ratio for 2015 is 13.9% under the tab, Under Armour Balance Sheet in W2 in cell M13.…

    • 1147 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    First, the profit and loss statement is one of the factors that indicates how financially healthy a company is, considering it as the reflection of the company’s cash flow.…

    • 775 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    With regard to the financial ratios, I will consider the current ratio, which is an estimate of the financial health of an organization; it measures a firm’s ability to settle its debts. It is calculated by dividing the current assets by current liabilities. For example, here are the current ratios for the Walt Disney Company for three financial…

    • 729 Words
    • 3 Pages
    Improved Essays