ACCOUNTING FOR MANAGERS
ASSIGNMENT 1
Ratio Analysis of Cement Industries
Titan Cement Company (SA)
Titan Group is an Independent multi regional cement producer, and the other building materials. It has its headquarters in Greece. Titan Cements was founded in 1902.
The data below is Balance Sheet of three financial years 2011, 2012 and 2013.
In Millions EUR
Particulars 2013 2012 2011
Assets
Cash and short term investments 184 284 334 Total Receivables, Net 112 127 118 Total Inventory 221 234 243 Prepaid Expenses 60 72 107 Other current assets, total 1.57 0 0.77 Total Current Asset 580 717 802 Property,Plant&Equipment 1565 1759 1187 Goodwill, net - 413 409 Intangibles 414 115 137 …show more content…
In order to pay 1Rupee Liability Company has 1.95 rupee asset.
On analyzing Acid test ratio of company of 2013, 2012 and 2011, we can say that Acid test ratio of 2011 was high at 2.30 when compared to other years. This depicts that ability of the firm to convert its current asset into cash is decreasing every year. Therefore the firm would find it difficult to pay its current liabilities. Even L.A/C.L standard ratio is 1:1.
Solvency ratios of Titan Cements were analyzed with the help of the balance sheet of year 2013, 2012 and 2011.These ratios measures solvency of the company and measures ratio of long term debt to shareholder’s equity. We can observe that long term debt equity ratio is relatively low in 2012 and 2013 when compared to 2011.This implies that there has been a smaller claim from creditors which is a good sign for company. A lower debt equity ratio implies that the creditors, a relatively high stake of the owners implies safety margin and substantial protection against shrinkage in …show more content…
In order to pay 1Rupee Liability Company has 0.15 rupee asset.
On analyzing Acid test ratio of company of 2012, 2011, we can say that Acid test ratio of 2011 was slightly high at 0.13 when compared to other year. This depicts that ability of the firm to convert its current asset into cash is decreasing every year. Therefore the firm would find it difficult to pay its current liabilities. Even L.A/C.L standard ratio is 1:1.
Solvency ratios of Titan Cements were analyzed with the help of the balance sheet of year 2012, 2011.These ratios measures solvency of the company and measures ratio of long term debt to shareholder’s equity. We can observe that long term debt equity ratio is relatively high in 2012 when compared to 2011.This implies that there has been a large finance from creditors. Though a higher debt equity ratio implies that there is risk involved and it may not be a good sign for the company, yet it is at safety margin and substantial protection against shrinkage in
ASSIGNMENT 1
Ratio Analysis of Cement Industries
Titan Cement Company (SA)
Titan Group is an Independent multi regional cement producer, and the other building materials. It has its headquarters in Greece. Titan Cements was founded in 1902.
The data below is Balance Sheet of three financial years 2011, 2012 and 2013.
In Millions EUR
Particulars 2013 2012 2011
Assets
Cash and short term investments 184 284 334 Total Receivables, Net 112 127 118 Total Inventory 221 234 243 Prepaid Expenses 60 72 107 Other current assets, total 1.57 0 0.77 Total Current Asset 580 717 802 Property,Plant&Equipment 1565 1759 1187 Goodwill, net - 413 409 Intangibles 414 115 137 …show more content…
In order to pay 1Rupee Liability Company has 1.95 rupee asset.
On analyzing Acid test ratio of company of 2013, 2012 and 2011, we can say that Acid test ratio of 2011 was high at 2.30 when compared to other years. This depicts that ability of the firm to convert its current asset into cash is decreasing every year. Therefore the firm would find it difficult to pay its current liabilities. Even L.A/C.L standard ratio is 1:1.
Solvency ratios of Titan Cements were analyzed with the help of the balance sheet of year 2013, 2012 and 2011.These ratios measures solvency of the company and measures ratio of long term debt to shareholder’s equity. We can observe that long term debt equity ratio is relatively low in 2012 and 2013 when compared to 2011.This implies that there has been a smaller claim from creditors which is a good sign for company. A lower debt equity ratio implies that the creditors, a relatively high stake of the owners implies safety margin and substantial protection against shrinkage in …show more content…
In order to pay 1Rupee Liability Company has 0.15 rupee asset.
On analyzing Acid test ratio of company of 2012, 2011, we can say that Acid test ratio of 2011 was slightly high at 0.13 when compared to other year. This depicts that ability of the firm to convert its current asset into cash is decreasing every year. Therefore the firm would find it difficult to pay its current liabilities. Even L.A/C.L standard ratio is 1:1.
Solvency ratios of Titan Cements were analyzed with the help of the balance sheet of year 2012, 2011.These ratios measures solvency of the company and measures ratio of long term debt to shareholder’s equity. We can observe that long term debt equity ratio is relatively high in 2012 when compared to 2011.This implies that there has been a large finance from creditors. Though a higher debt equity ratio implies that there is risk involved and it may not be a good sign for the company, yet it is at safety margin and substantial protection against shrinkage in