Moserk Company Ratio Analysis
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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
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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
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