Financial ratio

Mueller Water Product’s Future Success or Failure In my estimation, Mueller Water Products will be around for a while as evidenced by their stock performance, their strong financial ratios, and current industry market forecasts. One of the keys indicators of a successful company is the consistent performance in the stock market. In the last three years, Mueller Water Products have not had much variability in their stock price which is a good indication of their steady presence in the market…

specific identification method is how Starbucks’ allowance for doubtful accounts is computed. The allowance for doubtful accounts for Starbucks reported at year of October 2, 2011 and October 3, 2010 was both reported at $3.3 million. 3. The acid- test ratio computed for October 2, 2011 came out to be 1.17. This means that if all the current liabilities came and were due immediately, then Starbucks would not have any problem in paying them. 4. The accounts receivable turnover is 33.95 times for…

Financial Analysis of Nordstrom Inc. In Seattle Washington in 1901 John W. Nordstrom and Carl F. Wallin founded one of the countries largest and well-known retail stores in North America, Puerto Rico, and Canada. Nordstrom began as a shoe retailer but quickly expanded its inventory to include clothing, accessories, handbags, jewelry, cosmetics, and fragrances; along with some locations housing wedding dress and home furnishing departments. Currently Nordstrom has 347 stores that operate in…

The initial phase in evaluating a potential business venture is to figure out if the business is gainful and how the business has performed over its late history. Request budgetary reports that incorporate the previous three years ' financial plans and government forms, a monetary record, current records receivables, income projections and benefit and misfortune proclamations. Look at these to decide the business ' present total assets, its deals and cost patterns and where the organisation…

profitability ratio. The receivables turnover from 2009 to 2011 was improving and average collection period was getting faster over time. It indicates a good performance for the company is able to get more cash from their debtors. The receivables turnover shows a significant increase in 2013, which rise to 10,4; however, in 2014 it has fallen to 7.01, with the average receivable collection period 66.36 days. It indicates that it takes 66.36 days to collect their receivables. 3.3 Solvency Ratio…

brand of Target, it is easy to assume that they are excelling quicker than many other retailers. After applying the balance sheet and income statement to the ratios, I found that Target is not as embellished as I once thought. I will show you what I found looking at the liquidity, debt management, asset management and, and profitability ratios and why it is a good time to buy Target stocks. Before I start with my analysis, I would like to point out years 2014 and 2015 in the Target…

As shown in the above graph the two ratios are used in accordance to show the liquidity of each company. The liquidity ratio is “used to determine a firm’s ability to satisfy its short-term obligations as they come due” in a firm’s operating cycle (Gitman & Zutter, p.65). The first ratio shown in the graph is the current ratio, and is one of the more popular ratios used in finance. Current ratio is a determinant of whether or not a company is able to have the funds for obligations as they…

Despite the continued uncertainty in the current economic climate, Taylor Made Computer Solutions Ltd has performed profitably over the financial years 2012 and 2013. The company’s pre-tax profit amounted to £419,673 in 2013 (a 4% net margin) which is an increase of 60% compared to 2012. Profits after tax increased by £126,367 to £337,555 in 2013. Key areas such as sales proved highly adequate with the business recording an annual turnover of £9.8 million sales, representing a 6% increase in…

The current ratio calculation helps to determine in the short term how well a company is able to cover its liabilities in relation to their current assets. To assist a company in evaluating how much debt they have and whether the debt is too high would be the debt to assets ratio. This formula takes the company’s debt in the form of notes payable, long term bonds and long term debt and splits the…

it is excluded from determining the value of the liquid assets prevailing in the organization. From the balance sheet analysis, the two companies are struggling in meeting the current obligations of the organization as they have reported acid-test ratio of less than 1.0. For three years in operations, Wal-Mart has reported 0.13 (2014), 0.28 (2015), and 0.24 (2016) while Target Corp. has reported 0.45 (2014), 0.44 (2015), and 0.29…